Question
In: Finance
A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be called in...
A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,075. The bond sells for $1,050. (Assume that the bond has just been issued.) What is the bond's yield to maturity? Do not round your intermediate calculations. Round your answer to two decimal places. ________ % What is the bond's current yield? Do not round your intermediate calculations. Round your answer to two decimal places. ________ % What is the bond's capital gain or loss yield? Loss should be indicated with minus sign. Do not round your intermediate calculations. Round your answer to two decimal places. ________ % What is the bond's yield to call? Do not round your intermediate calculations. Round your answer to two decimal places. ________ %
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be called in...
A 15-year, 14% semiannual coupon bond with a par value
of $1,000 may be called in 4 years at a call price of $1,075. The
bond sells for $1,050. (Assume that the bond has just been
issued.)
1 What is the bond's yield to maturity? Round your
answer to two decimal places
2What is the bond's current yield? Round your answer
to two decimal places
3 What is the bond's capital gain or loss yield? Loss
should be indicated with...
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in...
A
20-year, 8% semiannual coupon bond with a par value of $1,000 may
be called in 5 years at a call price of $1,040. The bond sells for
$1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturity:
20
Periods per year:
2
Periods to maturity:
40
Coupon rate:
8%
Par value:
$1,000
Periodic payment:
$40
Current price
$1,100
Call price:
$1,040
Years till callable:
5
Periods till callable:
10
a. What is the
bond's...
A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called...
A 10-year, 12 % semiannual coupon bond with a par value of
$1,000 may be called in 5 years, at a call price of $1,060. The
bond sells for $1,300. (Assume the bond has just been issued).
a. What is the bond’s yields to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield in the first
year?
d. What is the bond’s yield to call?
A 14-year, semiannual coupon bond sells for $974.17. The bond has a par value of $1,000...
A 14-year, semiannual coupon bond sells for $974.17. The bond
has a par value of $1,000 and a yield to maturity of 6.54 percent.
What is the bond's coupon rate?
Assuming semiannual compounding, a 15-year zero coupon bond with a par value of $1,000 and a...
Assuming semiannual compounding, a 15-year zero coupon bond with
a par value of $1,000 and a required return of 13.4% would be
priced at _________.
A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
A 15-year, $1,000 par value, 10% semiannual coupon bond has a price of $1,190 and it...
A 15-year, $1,000 par value, 10% semiannual coupon bond has a
price of $1,190 and it is callable in 5 years at a call price of
$1,050. What is the bond’s nominal yield to call (YTC)?
a.
6.37%
b.
6.73%
c.
7.60%
d.
7.83%
e.
3.18%
A bond has a 15-year maturity, a 7.25% semiannual coupon, and a par = $1,000. The...
A bond has a 15-year maturity, a 7.25% semiannual coupon, and a
par = $1,000. The yield to maturity (rd) is 6.20%, and
semiannual compounding. What is the bond’s price?
a. $1,047.91
b. $1,074.50
c. $1,101.58
d. $1,129.21
Faber-Overdrive Autoparts issued at par value a 15-year 6% semiannual coupon bond, face value $1,000. At...
Faber-Overdrive Autoparts issued at par value a 15-year 6%
semiannual coupon bond, face value $1,000. At the end of 2 years,
the market yield increased to 7%. One year later, the market yield
was 8%. If you purchased the bond at the end of Year 2 and sold it
one year later, how much was your capital gain or loss?
A 20-year, semiannual coupon bond sells for $1,043.47. The bond has a par value of $1,000...
A 20-year, semiannual coupon bond sells for $1,043.47. The bond
has a par value of $1,000 and a yield to maturity of 6.72 percent.
What is the bond's coupon rate?
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