Question
In: Finance
Consider a bond that pays a 10.00% semi-annual coupon and matures in 10 years. If the...
Consider a bond that pays a 10.00% semi-annual coupon and matures in 10 years. If the current market value of the bond is $1,200, what is the YTM?
Solutions
Expert Solution
The yield to maturity (YTM) is calculated using Rate function in excel below
Therefore, YTM is 7.165%
jeff jeffy answered 1 year agoRelated Solutions
A bond pays a 5% coupon and makes semi-annual payments. The bond has 10 years to...
A bond pays a 5% coupon and makes semi-annual payments. The bond
has 10 years to maturity and a YTM of 6%. What is the current bond
price?
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 15 years and pays an 8 percent annual coupon.
The bond has a face value of $1,000 and currently sells for $985.
What is the bond’s current yield and yield to maturity?
The face value for WICB Limited bonds is $250,000 and has a 6
percent annual coupon. The 6 percent annual coupon bonds matures in
2035, and it is now 2020. Interest on these bonds is paid annually
on December 31 of each year, and...
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 15 years and pays an 8 percent annual coupon.
The bond has a face value of $1,000 and currently sells for $985.
What is the bond’s current yield and yield to maturity?
A bond matures in 15 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 15 years and pays an 8 percent annual coupon.
The bond has a face value of $1,000 and currently sells for $985.
What is the bond’s current yield and yield to maturity? $
9. A bond matures in 12 years and pays a 6 percent annual coupon. The bond...
9. A bond matures in 12 years and pays a 6 percent annual
coupon. The bond has a face value of $1,000 and currently sells for
$890. What is the bond’s current yield and yield to maturity?
10. The face value for Karen’s Limited bonds is $100,000 and has
a 2 percent annual coupon. The 2 percent annual coupon bonds
matures in 2022, and it is now 2012. Interest on these bonds is
paid annually on December 31 of each...
A bond matures in 20 years and pays an 8 percent annual coupon. The bond has...
A bond matures in 20 years and pays an 8 percent annual coupon.
The bond has a face value of $1000 and currently sells for $900.
What is the bond's current yield and yield to maturity?
A bond has a 11% coupon rate with semi-annual coupons and matures in 9 years. The...
A bond has a 11% coupon rate with semi-annual coupons and
matures in 9 years. The bond has a $1,000 face value and a current
yield of 14.37%.
What is the bond's price?
What is the bond's yield to maturity? Enter your answer as a
decimal.
Consider a bond that pays $50 semi-annual interest and has a remaining life of 10 years....
Consider a bond that pays $50 semi-annual interest and has a
remaining life of 10 years. The bond currently sells for $987 and
has a yield to maturity of 10.20%.
a. What is the bond’s duration?
b. What is its modified duration?
c. What is its convexity?
d. What percentage change in bond price would be expected for
one percent decrease in interest rate?
A bond with a 10% annual coupon matures in 6 years. The bond has a price...
A bond with a 10% annual coupon matures in 6 years. The bond has
a price of $1,200. What is the yield to maturity for this bond?
Question 3 options:
2.99%
5.94%
5.98%
7.42%
A bond pays a coupon rate of 5% annually and matures in 10 years. The principal...
A bond pays a coupon rate of 5% annually and matures in 10
years. The principal is $10,000 and current market price is
$8,500.
Suppose the yield increases by 0.05% (0.0005, i.e. 5 bps). What
is the new bond price? What is the actual change in price?
What is the change in price predicted by modified duration
formula? Is this change larger or smaller compared to the actual
price change in (c)? Why?
How would incorporating convexity help improve duration...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1.Under the lockout/tagout standard, what is the difference between an authorized employee and an affected employee?...
- Ethics Case What should he do? Tobias Ivanov, a senior accountant, has just completed his third...
- Develop a Java program for the question below: A running race among animals: In a race...
- Identify an aspect of employment law( things like equal pay, exempt status, minimum wage, anti-discrimination, affirmative...
- the price of a one-year pure discount bond is 96.15 and the price of a two-year...
- An FI has purchased a $207 million cap of 9 percent at a premium of 0.60...
- A $1,000 face value has a 5% annual coupon rate. The next coupon is due in...
ADVERTISEMENT