Northern Corp. issued 15-year bonds two years ago at a coupon rate of 6.25 percent.

Northern Corp. issued 15-year bonds two years ago at a coupon rate of 6.25 percent. The bonds make semiannual payments. If these bonds currently sell for 102.50 percent of par value, what is the YTM?

Solutions

Expert Solution

we have to use financial calculator to solve this
put in calculator

FV		1,000.00
PV	1000*102.5%	(1,025.00)
PMT	1000*6.25%/2	31.25
N	15*2	30

Compute I		2.997%

YTM = 2.997%*2		5.99%

Ans=		5.99%

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Bond Yields?Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent....

Bond Yields?Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? ( I need the following info) Settlement Maturity Rate Pr Redemption Frequency Basis: YTM

Heginbotham Corp. issued 10-year bonds two years ago at a coupon rate of 9 percent. The...

Heginbotham Corp. issued 10-year bonds two years ago at a coupon rate of 9 percent. The bonds make semiannual payments. If these bonds currently sell for 102 percent of par value, what is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. YMT _____% Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these...

Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent....

Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? Settlement Date= 1/1/2000 Maturity Date= 1/1/2018 Annual Coupon Rate =7.10% Coupon per Year=2 Face Value(%of Par)=100 Bond Price (%of Par)=105 Calculate Yield to Maturity in Excel using above Information

West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The...

West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?

Clapper Corp. issued 12-year bonds 2 years ago at a coupon rate of 7.8 percent. The...

Clapper Corp. issued 12-year bonds 2 years ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. If these bonds currently sell for 108 percent of par value, what is the YTM? Par Value = $1,000 Using Method One: the equation Bond price = par value * (1+r)^-n + coupon * (1 - (1+r)^-n)/r Please show all work

West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The...

West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?

2a. Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 10.6 percent...

2a. Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 10.6 percent (APR). The bonds make semiannual payments. If these bonds currently sell for 97 percent of par value, what is the YTM (as an APR)? 2b. Ashes Divide Corporation has bonds on the market with 14 years to maturity, a YTM of 6.4 percent (APR), and a current price of $1,176.50. The bonds make semiannual payments. What must the coupon rate be on these bonds...

Two years ago, Weslo Corp. issued 25-year bonds at a coupon rate of 5.3 % paid...

Two years ago, Weslo Corp. issued 25-year bonds at a coupon rate of 5.3 % paid semi-annually. If the current price of these bonds is 105% of par value, what is YTM? Select one: a. 4.9% b. 4.93% c. 4%

Bose Outfitters issued 25-year bonds two years ago at a coupon rate of 7.80 percent. If...

Bose Outfitters issued 25-year bonds two years ago at a coupon rate of 7.80 percent. If these bonds currently sell for $848, what is the YTM?

Dexter Mills issued a 25-year bonds two years ago at a coupon rate of 10.2 percent....

Dexter Mills issued a 25-year bonds two years ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. The yield-to-maturity on these bonds is 9.2 percent. What is the current bond price? I got $5316.51, but I am unsure of my answer so would like confirmation + see the work to get the answer. Thanks!

Subjects