Question

In: Finance

Bart Software has 9.3 percent coupon bonds on the market with 24 years to maturity. The...

Bart Software has 9.3 percent coupon bonds on the market with 24 years to maturity. The bonds make semiannual payments and currently sell for 112.5 percent of par.

a.

What is the current yield on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. What is the effective annual yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Solutions

Expert Solution

As nothing was mentioned excel is used.


Related Solutions

Bart Software has 5.7 percent coupon bonds on the market with 22 years to maturity. The...
Bart Software has 5.7 percent coupon bonds on the market with 22 years to maturity. The bonds make semiannual payments and currently sell for 97 percent of par. a. What is the current yield on Bart's bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)...
Bonino Software has 8.8 percent coupon bonds on the market with 19 years to maturity.
Bonino Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.2 percent of par.What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Current yield =_______ % What is the YTM of the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM...
Hacker Software has 11.6 percent coupon bonds on the market with 14 years to maturity. The...
Hacker Software has 11.6 percent coupon bonds on the market with 14 years to maturity. The bonds make semiannual payments and currently sell for 108.6 percent of par. What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Current yield %   What is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   YTM...
Workman Software has 10.8 percent coupon bonds on the market with 6 years to maturity. The...
Workman Software has 10.8 percent coupon bonds on the market with 6 years to maturity. The bonds make semiannual payments and currently sell for 115.8 percent of par. a. What is the current yield on the bonds? • 9.79% • 0.19% • 9.33% • 10.29% b. The YTM? • 7.67% • 3.74% • 7.49% • 11.30% c. The effective annual yield? • 8.01% • 0.09% • 7.63% • 7.46%
Bourdon Software has 5 percent coupon bonds on the market with 17 years to maturity. The...
Bourdon Software has 5 percent coupon bonds on the market with 17 years to maturity. The bonds make semiannual payments and currently sell for 96 percent of par. What is the effective annual yield? (Enter your answer as a percentage, omit the "%" sign in your response, and enter your answer with two decimal places. For example, 1.214% should be entered as 1.21.)
Hacker Software has 9 percent coupon bonds on the market with 20 years to maturity. The...
Hacker Software has 9 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 107.3 percent of par. What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Current yield %   What is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   YTM...
Hacker Software has 9.4 percent coupon bonds on the market with 19 years to maturity. The...
Hacker Software has 9.4 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.5 percent of par. What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   Current yield 8.744%   What is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   YTM...
Lifehouse Software has 10 percent coupon bonds on the market with 7 years to maturity. The...
Lifehouse Software has 10 percent coupon bonds on the market with 7 years to maturity. The bonds make semiannual payments and currently sell for 104 percent of par. What is the current yield on Lifehouse’s bonds? The YTM? Five years ago Thompson Tarps, Inc. issued twenty-five-year 10% annual coupon bonds with a $1,000 face value. Since then, interest rates in general have risen, and the yield to maturity on the Thompson Tarps bonds is now 12%. Given this information, what...
Hacker Software has 9 percent coupon bonds on the market with 20years to maturity. The...
Hacker Software has 9 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 107.3 percent of par.What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)  Current yield%  What is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)  YTM%  What is the effective annual yield?...
A software company has 11 percent coupon bond on the market with 20 years to maturity,...
A software company has 11 percent coupon bond on the market with 20 years to maturity, and the par value of $1,000. The bonds make semi-annual coupon payments and currently sell for $1,125. What is the YTM? If the bond with the same maturity and similar risk pays 8% annual coupon (pays semi-annually), what should be the market price of the second bond?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT