13. If a 7% coupon bond is trading for $975.00, it has a current
yield of ____________ percent.
A) 7.00
B) 6.53
C) 7.24
D) 7.18
14. If a 6% coupon bond is trading for $950.00, it has a current
yield of ____________ percent.
A) 6.5
B) 6.3
C) 6.1
D) 6.0
E) 6.6
15. If an 8% coupon bond is trading for $1025.00, it has a
current yield of ____________ percent.
A) 7.8
B) 8.7
C) 7.6
D) 7.9...
A ten-year annual pay bond with a 5% coupon rate is trading with
a market yield of 7.75%. What is the percentage change in price if
the market yield decreases by 75 basis points immediately after the
bond is issued?
2. Please calculate the following bond values, Yield to
Maturity, current yield and capital gains.
1) Value of 10-year, 10% coupon, semiannual bond if rd =
13%.
2) Value of 10-year, 10% coupon, semiannual bond if rd = 7%.
3) Value of 10-year, 10% coupon, semiannual bond if rd =
10%.
4) YTM on a 10-year, 9% semi-annual coupon, $1,000 par value
bond selling for $887
5) Current yield and capital gains for case
6) What is the relation between...
Consider a $1,000.00 face value bond with a $ 33 annual coupon.
Calculate the current yield if the bond is purchased for $
1,080
Suppose a Treasury bill has * purchase price of $ 9,559 a face
value of $10,000 210 days to maturity. Calculate the yield to
maturity
(8) calculate the price change for a 1-percent decrease in
market yield for the following bond: par = $1000; coupon rate = 6
percent, paid semi-annually; market yield = 6 percent; term to
maturity = 10 years
If you are holding a municipal bond that is trading at par to
yield 6%, by how much will your after-tax yield change if your
federal income tax bracket increases from 15% to 20%. Assume there
are no state or local taxes
Describe the characteristics of long-term debt. What is the
current bond yield in the market? What is an inverted bond yield
curve? What does it reflect about the economy's status?
Find the duration of a 10-year, 8% bond that is trading at a
yield of 10% and pays coupons every 6 months.
Please round your numerical answer to two decimal places.
Consider a five year bond with a 10% coupon that is presently
trading at a yield to maturity of 8%. If market rates do not
change, one year from now the price of this bond _____________.
Will be higher
Will be lower
Will be the same
Cannot be determined from the information given
A bond’s sensitivity to interest rate changes _____________ at
a(n) _______________ rate as maturity lengthens.
increases; decreasing
decreases; decreasing
increases, increasing
decreases, decreasing