Question
In: Finance
(Yield to maturity) A bond's market price is $1 comma 075. It has a $1 comma...
(Yield to maturity) A bond's market price is $1 comma 075. It has a $1 comma 000 par value, will mature in 6 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 12 years? What if it matures in 3 years?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
(Yield to maturity) A bond's market price is $900. It has a $1,000 par value, will...
(Yield to maturity) A bond's market price is
$900. It has a $1,000 par value, will mature in 8 years, and
has a coupon interest rate of 8 percent annual interest, but makes
its interest payments semiannually.
What is the bond's yield to maturity? % (Round to two
decimal places.)
What happens to the bond's yield to maturity if the bond
matures in 16 years? % (Round to two decimal places.)
What if it matures in 4 years?...
1.)The relationship between a bond's price and the yield to maturity is an inverse relationship. Please...
1.)The relationship between a bond's price and the yield to
maturity is an inverse relationship. Please explain; make sure you
don't simply restate the inverse relationship, but explain the
reasoning. If you can remember and understand the "why", you will
never forget this important relationship.
2.)Examples are encouraged. Why are stock valuation models
dependent upon expected dividends, future dividend growth and an
appropriate discount rate? Please be sure to review how we value
any financial asset which will help dissect...
1) A bond's yield to maturity takes into consideration: A. current yieldbut not price changes of...
1) A bond's yield to maturity takes into consideration:
A. current yieldbut not price changes of a bond.
B. price changesbut not current yield of a bond.
C. both currentyield and price changes of a bond.
D. neither current yield nor price changes of a bond.
2: 3) What price will be paid for a U.S. Treasury bond with an
ask price of 135:20?
A. $1,350.20
B. $1,350.31
C. $1,350.63
D. $1,356.25
8) What can be expected to happen when...
(Yield to maturity) The market price is $775 for a 17-year bond ($1 comma 000 par...
(Yield to maturity) The market price is $775 for a 17-year
bond ($1 comma 000 par value) that pays 9 percent annual
interest, but makes interest payments on a semiannual basis (4.5
percent semiannually). What is the bond's yield to maturity?
The bond's yield to maturity is nothing%
If a bond's yield to maturity does not change, the return on the bond each year...
If a bond's yield to maturity does not change, the return on the
bond each year will be equal to the yield to maturity. Confirm this
for both a premium and a discount bond using a 4-year 4.4 percent
coupon bond with annual coupon payments and a face value of
$1,000.
a. Assume the yield to maturity is 3.4
percent.
What is the current value of the bond? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)...
The market price of a 18.00-year STRIPS is $386.00 The yield to maturity is ____%.
The market price of a 18.00-year STRIPS is $386.00 The yield to
maturity is ____%.
) A bond's market price is $950. It has a $1,000 par value, will mature in...
) A bond's market price is $950. It has a $1,000 par value, will
mature in 14 years, and has a coupon interest rate of 8 percent
annual interest, but makes its interest payments semiannually. What
is the bond's yield to maturity? What happens to the bond's yield
to maturity if the bond matures in 28 years? What if it matures in
7 years? (Round to two decimal places.) The bond's yield to
maturity if it matures in 14 years...
A 9-year maturity, AAA rated corporate bond has a 6% coupon rate. The bond's promised yield...
A 9-year maturity, AAA rated corporate
bond has a 6% coupon rate. The bond's promised yield is currently
5.75%. The bond pays interest semiannually.
What is the bond's duration?
What is the bond's convexity?
If promised yields decrease to 4.85% what is the bond's
predicted new price, excluding convexity? What is the bond's
predicted new price including convexity?
If promised yields increase to 6.5% what is the bond's
predicted new price, excluding convexity? What is the bond's
predicted new price...
What is the yield to maturity on a bond that has a price of $2,824 and...
What is the yield to
maturity on a bond that has a price of $2,824 and pays $107
annually forever?
Please round your
answer to the fourth decimal. E.g. 0.1234
What is the yield to maturity on a perpetuity that has a price of $2,079 and...
What is the yield to
maturity on a perpetuity that has a price of $2,079 and pays $106
annually forever?
Please round your
answer to the fourth decimal. E.g. 0.1234
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