Calculate the current yield on DuPont’s bond if it is trading at $1095 in the market...

Calculate the current yield on DuPont’s bond if it is trading at $1095 in the market and it has a

coupon rate of 5% for 13 years and a $1000 par value. What would be the current yield if the price

dropped to $990?

Expert Solution

Answer to the Question:

jeff jeffy answered 1 year ago

13. If a 7% coupon bond is trading for $975.00, it has a current yield of...

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...

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?

Consider a $1,000.00 face value bond with a $ 33 annual coupon. Calculate the current yield...

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:...

(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...

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...

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?

What is the current yield for a Bond with a $1,000 par value bond, with an...

What is the current yield for a Bond with a $1,000 par value bond, with an 10% annual coupon that matures in 15 years if the interest rate is 8%?

Find the duration of a 10-year, 8% bond that is trading at a yield of 10%...

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...

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

Determine the current yield AND the approximate yield tomaturity for a 6.2%, $800,000 coupon bond...

Determine the current yield AND the approximate yield to maturity for a 6.2%, $800,000 coupon bond selling for $822,400 and maturing in 20 years.

Question