Question
In: Finance
A bond that settles on June 7, 2016, matures on July 1, 2036, and may be...
A bond that settles on June 7, 2016, matures on July 1, 2036, and may be called at any time after July 1, 2026, at a price of 166. The coupon rate on the bond is 7.6 percent and the price is 178.00. What are the yield to maturity and yield to call on this bond?
Yield to maurity:
Yield to call:
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A bond that settles on June 7, 2016, matures on July 1, 2036, and may be...
A bond that settles on June 7, 2016, matures on July 1, 2036,
and may be called at any time after July 1, 2026, at a price of
170. The coupon rate on the bond is 6 percent and the price is
187.00. What are the yield to maturity and yield to call on this
bond? (Do not round intermediate calculations. Enter your
answers as a percent rounded to 2 decimal places.)
yield to maturity and yield to call?
A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon...
A Treasury bond that settles on October 18, 2016, matures on
March 30, 2035. The coupon rate is 6.05 percent and the bond has a
yield to maturity of 5.50 percent. What are the Macaulay duration
and modified duration?
Macaulay duration
Modified duration
A $3500 bond paying interest at j1 = 10% matures on June 1, 2030. On July...
A $3500 bond paying interest at j1 = 10% matures on June 1,
2030. On July 22, 2004, it was purchased for $3551 plus bond
interest. On April 3, 2009, it was sold for $3443 plus bond
interest. Estimate the yield j1 by the method of averages.
(1 point) A $3500 bond paying interest at j1j1 = 10% matures on June 1, 2030....
(1 point) A $3500 bond paying interest at j1j1 = 10% matures on
June 1, 2030. On July 22, 2004, it was purchased for $3551 plus
bond interest. On April 3, 2009, it was sold for $3443 plus bond
interest. Estimate the yield j1j1 by the method of averages.
On January 1, 2016 Nick issued a $100,000 bond that matures in 20 years and pays...
On January 1, 2016 Nick issued a $100,000 bond that matures in
20 years and pays 8% interest (stated or coupon rate) a year.
(Payment date is December 31.) The market (yield) rate is
6%.
Record the entry Nick has to make on January 2 when he issues
the Bonds Payable.
Date
Accounts
Debit(s)
Credit(s)
12/31/16
Assume the bond was sold @ 104.
3. Complete the first two years of the following table:
Year
Interest Expense
Book...
Question 1 Week 7 (7 marks) Jaguar Ltd purchased a machine on 1 July 2016 at...
Question 1 Week 7 Jaguar Ltd purchased a machine on 1
July 2016 at the cost of $640,000. The machine is expected to have
a useful life of 5 years (straight-line basis) and no residual
value. For taxation purposes, the ATO allows the company to
depreciate the asset over 4 years. The profit before tax for the
company for the year ending 30 June 2017 is $600,000. To calculate
this profit the company has deducted $60,000 entertainment expense,
and $80,000...
A $1,000 par value bond has 7.5% semiannual coupons and matures on July 1, 2017 at...
A $1,000 par value bond has 7.5% semiannual coupons and matures
on July 1, 2017 at $1050. Find the actual feeling price of this
bond on November 15, 2013 and the price that would be quoted in a
financial newspaper on the same date, based on a nominal annual
yield rate of 5.8% compounded semiannually. Use the actual number
of days to compare the accrued interest.
A $1,000 par value bond has 7.5% semiannual coupons and matures on July 1, 2017 at...
A $1,000 par value bond has 7.5% semiannual coupons and matures
on July 1, 2017 at $1050. Find the actual feeling price of this
bond on November 15, 2013 and the price that would be quoted in a
financial newspaper on the same date, based on a nominal annual
yield rate of 5.8% compounded semiannually. Use the actual number
of days to compare the accrued interest.
1. A $1000 par value bond has a coupon rate of 7% and matures in 4years....
1. A $1000 par value bond has a coupon rate of 7% and matures in
4years. The bond makes semi-annual coupon payments.
a) If the bond is selling for $920, the YTM of the bond is?
b) If the bond is trading at $920, what is the current yield of
the bond?
c) The capital gains yield that an investor expects to earn this
year on the bond, if interest rates remain the same is?
d) The current price of...
A 7% semiannual coupon bond matures in 6 years. The bond has a face value of...
A 7% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 7.5649%.
What is the bond's price? Do not round intermediate calculations.
Round your answer to the nearest cent.
$______
What is the bond's YTM? (Hint: Refer to Footnote 6 for the
definition of the current yield and to Table 7.1) Do not round
intermediate calculations. Round your answers to two decimal
places.
______%
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