Question

In: Finance

a bond with a $1000 par value, 10 years to maturity, and a coupon rate of...

a bond with a $1000 par value, 10 years to maturity, and a coupon rate of 6% paid annually is selling for $1,123.42. Its yield to maturity is:

a. 3.00%

b. 4.44%

c. 12.34%

d. 10.29%

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Given the following bond: Par Value = $1000 Time to Maturity = 8 years Coupon Rate...
Given the following bond: Par Value = $1000 Time to Maturity = 8 years Coupon Rate = 6.25% Coupons are paid annually. Calculate the Duration of this bond. Please note this is calculating the duration so you do not need the discount rate or the market price
A bond with 1000 par value, has 14 years left to maturity has a coupon rate...
A bond with 1000 par value, has 14 years left to maturity has a coupon rate of 10% with semi-annual coupon payments. The current yield to maturity is 15.5%. What is the current yield? 13.64% 11.15% 11.95% 14.51% 12.78%
A $1000 par value bond with a term of 5 years and a coupon rate of...
A $1000 par value bond with a term of 5 years and a coupon rate of 6% convertible semi-annually is purcased to yield 8% convertible monthly. What is the purchase price of the bond?
A $1000 par value bond with 4 years to maturity has a coupon payment of 9%...
A $1000 par value bond with 4 years to maturity has a coupon payment of 9% pa paid annually. Suppose the yield to maturity is 11% pa cont. comp. Compute the bond price and the duration??
A bond has 3 years to maturity, a 10% annual coupon and a par value of...
A bond has 3 years to maturity, a 10% annual coupon and a par value of $100. The bond pays a continuously compounded interest of 7%. Suppose the interest rate goes down to 6%. What would be the percentage change in the price of the bond implied by the duration plus convexity approximation?
A bond has 3 years to maturity, a 10% annual coupon and a par value of...
A bond has 3 years to maturity, a 10% annual coupon and a par value of $100. The bond pays a continuously compounded interest of 7%. Suppose the interest rate goes down to 6%. What would be the percentage change in the price of the bond implied by the duration plus convexity approximation?
A coupon has 20 years to maturity. Coupon rate is 10% annually with par value of...
A coupon has 20 years to maturity. Coupon rate is 10% annually with par value of $1000. Current yield to maturity is 10%. What is the convexity of the bond? Please estimate the convexity using changes in bond prices and use 200 basis points to calculate the convexity. (please show full working)
A bond has a 10-year maturity, a 5% coupon paid semiannually, and $1000 par value. The...
A bond has a 10-year maturity, a 5% coupon paid semiannually, and $1000 par value. The required rate of return (yield to maturity)on the bond is 11%. Compute the price of the bond today using a table of cash flows (discount the cash flow in each period back to the present using the time value of money formula) SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW Period (NPER) Cash flow PV
Bond 1 has a 10% annual coupon rate, $1000 maturity value, n = 5 years, YTM...
Bond 1 has a 10% annual coupon rate, $1000 maturity value, n = 5 years, YTM = 10% (pays a $100 annual coupon at the end of each year and $1,000 maturity payment at maturity at the end of year 5). Bond 2 is a zero coupon bond with a $1000 maturity value, and n = 5years; YTM= 10%. (has no coupon payments; only a $1,000 maturity payment paid at maturity at the end of year 5). What is the...
Bond Face Value Coupon rate Yield to Maturity Term to Maturity Duration A $1000 4% 10%...
Bond Face Value Coupon rate Yield to Maturity Term to Maturity Duration A $1000 4% 10% 5 4.57 B $1000 12% 10% 5 4.07 Now suppose the yield to maturity becomes 11%. What are the % change in prices of bond A and B?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT