If an A Rated Corporate Debenture with a coupon rate of 4.5% and a price of...

If an A Rated Corporate Debenture with a coupon rate of 4.5% and a price of 98.5% of par had a maturity date of 9/18/32, what would its YTM be assuming semi-annual coupons and state as an APR?

Using the coupon rate above, if this 12 year bond experienced a 1.5% increase in YTM, what would its new present value be?

Expert Solution

jeff jeffy answered 2 years ago

What is the price of a $10,000 bond with a 4.5% coupon rate with quarterly coupon...

What is the price of a $10,000 bond with a 4.5% coupon rate with quarterly coupon payments, and 7 years to maturity if it has a YTM of 6%?

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...

Suppose that you purchased a A rated $5000 annual coupon bond with an 6.8% coupon rate...

Suppose that you purchased a A rated $5000 annual coupon bond with an 6.8% coupon rate and a 18-year maturity at par value. The current rate on 18-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 7.223%, how much is the bond currently worth?

Suppose that you purchased a A rated $5,000 annual coupon bondwith an 5.3% coupon rate...

Suppose that you purchased a A rated $5,000 annual coupon bond with an 5.3% coupon rate and a 11-year maturity at par value. The current rate on 11-year US treasuries is 3%. Two years later, you sell the bond, and for a yield of 4.322%, what was your capital gain (+) or capital loss (-) in dollars and cents? (make your answer positive for a gain, negative for a loss)

Suppose that you purchased a B- rated $5,000 annual coupon bond with an 16.5% coupon rate...

Suppose that you purchased a B- rated $5,000 annual coupon bond with an 16.5% coupon rate and a 9-year maturity. The current rate on 9-year US treasuries is 3%. If you purchased it at a 7.021% discount to par value, how much did you pay?

2. I am considering investing in an A-rated five year zero coupon corporate bond with a...

2. I am considering investing in an A-rated five year zero coupon corporate bond with a par value of $10,000. Five year government bonds are trading at a yield of 3.8% (semi-annual) and corporate bonds spreads are: AA 100 A 140 BB 190 a) What would the purchase price of the bond be ? b) What would be my total percentage capital gain or loss at the end of five years ? c) What would be my capital gain...

An 8 - year corporate bond has 7% coupon rate. What should be the bond's price...

An 8 - year corporate bond has 7% coupon rate. What should be the bond's price if he required return is 6% and the bond pay interest semiannually?

Suppose that you purchase a Baa rated $1000 semi-annual coupon bond with a 7.5% coupon rate...

Suppose that you purchase a Baa rated $1000 semi-annual coupon bond with a 7.5% coupon rate and a 3-year maturity yielding 5.623%, what would the price be?

suppose the risk free rate is 1.50%; on average, an AAA rated corporate bond carries a...

suppose the risk free rate is 1.50%; on average, an AAA rated corporate bond carries a credit spread of 0.5%, an BB-rated corporate bond carries a credit spread of 2.5% and a B rated corporate bond carries a credit spread of 3.5%. company BTS's outstanding debt is rated A by rating agencies. What could be the cost of debt for BTS based on prevailing market rates? a. 1.25% b. 5.25% c. 3.25% d. 4.25%

1. A company issues a bond with a face value of $500,000, coupon rate of 4.5%...

1. A company issues a bond with a face value of $500,000, coupon rate of 4.5% and term of five years. Make the entries to record the issue of the bond, payment of the first interest payment due and payoff of the bond at maturity under each of the following conditions: a. Referring to the long term bond provided in the quiz preparation document: enter the amount that will be received by the company if the market interest rate on...

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