Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until...

Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until maturity. If the bond sells for $833⁹⁵⁵⁴ what is your capital gain yield between T=6 and T=7.

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jeff jeffy answered 2 years ago

Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until...

Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until maturity. If the bond sells for $833.9554 what is your capital gain yield between T=6 and T=7.

Consider a 8% coupon bond making annual coupon payments with 4 years until maturity and a...

Consider a 8% coupon bond making annual coupon payments with 4 years until maturity and a yield to maturity of 10%. What is the modified duration of this bond? If the market yield increases by 75 basis points, what is the actual percentage change in the bond’s price? [Actual, not approximation] Given that this bond’s convexity is 14.13, what price would you predict using the duration-with-convexity approximation for this bond at this new yield? What is the percentage error?

Consider a 8% coupon bond making annual coupon payments with 4 years until maturity and a...

Consider a 8% coupon bond making annual coupon payments with 4 years until maturity and a yield to maturity of 10%. What is the modified duration of this bond? If the market yield increases by 75 basis points, what is the actual percentage change in the bond’s price? [Actual, not approximation] Given that this bond’s convexity is 14.13, what price would you predict using the duration-with-convexity approximation for this bond at this new yield? What is the percentage error? Please...

A bond that matures in 6 years has an 8 percent coupon rate,semiannual payments, a...

A bond that matures in 6 years has an 8 percent coupon rate, semiannual payments, a face value of $1,000, and a 7.7 percent current yield. What is the bond’s nominal yield to maturity (YTM)?

A company's 8% annual coupon rate, semi-annual coupon payment, $1,000 Face Value bond has 30-years until...

A company's 8% annual coupon rate, semi-annual coupon payment, $1,000 Face Value bond has 30-years until maturity and is currently selling at a price = $775. The company's Federal income tax rate = 22%. What is the firm's after tax component cost of debt for the purpose of calculating the WACC?

A bond has 8 years until maturity, a coupon rate of 8%, and sells for 1,100...

A bond has 8 years until maturity, a coupon rate of 8%, and sells for 1,100 a. If the bond has a yield to maturity of 8% 1 year from now, what will its price be? Price $ b. What will be the rate of return on the bond? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % c. If the inflation rate during...

Bond A is a 6 % coupon bond and makes annual payments with 10 years to...

Bond A is a 6 % coupon bond and makes annual payments with 10 years to maturity. Bond B is a 6% coupon bond and makes annual payments with 20 years to maturity. Both bonds have a market required return of 10% and face value of 1,000. b) What will happen to the prices of both bonds if the interest rate increases by 2%? Explain

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Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until...

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