Question
In: Finance
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is...
Suppose a ten-year,
$ 1000 bond with an
8.5 % coupon rate and semiannual coupons is trading for
$ 1034.55
.
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? ___________
b. If the bond's yield to maturity changes to
9.9 %
APR, what will be the bond's price?
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
The bond's yield to maturity is? ______ Round to two decimal places
What is the new price of the bond? _____________
Solutions
Expert Solution
a. Bonds Yield to maturity = YTM with semi annual Period * 2
Bonds Yield to maturity = 3.995 * 2
Bonds Yield to maturity = 7.99%
b.Bond Price when YTM is 9.90% = $912.39
jeff jeffy answered 1 year agoRelated Solutions
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is...
Suppose a ten-year, $ 1000 bond with an 8.5 % coupon rate and
semiannual coupons is trading for $ 1035.41.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.1 % APR, what
will be the bond's price?
Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for...
Suppose a ten-year,
$1,000
bond with an
8.5%
coupon rate and semiannual coupons is trading for
$1,034.79.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to
9.4%
APR, what will be the bond's price?
Suppose a? ten-year, $ 1000 bond with an 8.1 % coupon rate and semiannual coupons is...
Suppose a? ten-year, $ 1000 bond with an 8.1 % coupon rate and
semiannual coupons is trading for $ 1034.99. a. What is the? bond's
yield to maturity? (expressed as an APR with semiannual?
compounding)? b. If the? bond's yield to maturity changes to 9.5 %
?APR, what will be the? bond's price? (Round to two decimal?
places.)
Suppose a ten-year, $ 1,000 bond with an 8.1 % coupon rate and semiannual coupons is...
Suppose a ten-year, $ 1,000 bond with an 8.1 % coupon rate and
semiannual coupons is trading for $ 1, 035.42.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)? (round to two decimal places)
b. If the bond's yield to maturity changes to 9.6 % APR, what
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Suppose a ten-year, $ 1,000 bond with an 8.7 % coupon rate and semiannual coupons is...
Suppose a ten-year, $ 1,000 bond with an 8.7 % coupon rate and
semiannual coupons is trading for $ 1,035.04.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.1 % APR, what
will be the bond's price?
Suppose a ten-year, $ 1 comma $1,000 bond with an 8.5 % coupon rate and semiannual...
Suppose a ten-year, $ 1 comma $1,000 bond with an 8.5 % coupon
rate and semiannual coupons is trading for $ 1 comma $1,035.59. a.
What is the bond's yield to maturity (expressed as an APR with
semiannual compounding)? b. If the bond's yield to maturity
changes to 9.8 % APR, what will be the bond's price?
Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for...
Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and
semiannual coupons is trading for $1,034.16.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.8% APR, what
will be the bond's price?
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and semiannual coupons is trading for...
Suppose a ten-year, $1,000 bond with an 8.7% coupon rate and
semiannual coupons is trading for $1,035.67.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.7% APR, what
will be the bond's price?
nothing%. (Round to two decimal places.)
Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for...
Suppose a ten-year,
$1,000
bond with an
8.8%
coupon rate and semiannual coupons is trading for
$1,035.09.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to
9.7%
APR, what will be the bond's price?
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for...
Suppose a ten-year, $1,000 bond with an 8.4% coupon
rate and semiannual coupons is trading for $1,034.17.
a. What is the bond's yield to
maturity (expressed as an APR with semiannual
compounding)?
b. If the bond's yield to maturity
changes to 9.7% APR, what will be the bond's price?
Suppose a five-year, $1,000 bond with annual coupons
has a price of $896.48 and a yield to maturity of
6.3%.
c. What is the bond's coupon
rate?
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