Question
In: Finance
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The...
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The bond currently sells for $800. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
Solutions
jeff jeffy answered 11 months agoRelated Solutions
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The...
A 20-year, $1,000 par value bond has a 7.50% coupon rate with
interest paid semiannually. The bond currently sells for $875. What
is the capital gains yield on these bonds? Enter your answer
rounded to two decimal places. Do not enter % in the answer box.
For example, if your answer is 0.12345 or 12.345% then enter as
12.35 in the answer box.
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The...
A 20-year, $1,000 par value bond has a 7.50% coupon rate with
interest paid semiannually. The bond currently sells for $800. What
is the capital gains yield on these bonds? Enter your answer
rounded to two decimal places. Do not enter % in the answer box.
For example, if your answer is 0.12345 or 12.345% then enter as
12.35 in the answer box.
A 10-year, $1,000 par value bond has a 6.75% coupon rate with interest paid semiannually. The...
A 10-year, $1,000 par value bond has a 6.75% coupon rate with
interest paid semiannually. The bond currently sells for $850. What
is the capital gains yield on these bonds? Enter your answer
rounded to two decimal places. Do not enter % in the answer box.
For example, if your answer is 0.12345 or 12.345% then enter as
12.35 in the answer box.
A $1,000 par value bond has an 8% coupon rate (paid semiannually). It has 5 years...
A $1,000 par value bond has an 8% coupon rate (paid
semiannually). It has 5 years remaining to maturity. If bond’s
current price $1,085.30, what should be the YTM of this bond?
a. 6%
b. 3.69%
c. 7.37%
d. 3%
A $1,000 par value bond has an 8% coupon rate (paid semiannually). It has 5 years...
A $1,000 par value bond has an 8% coupon rate (paid
semiannually). It has 5 years remaining to maturity. If current
market interest rate is 6%, what should be the current price of
this bond?
a. $1,000
b. $1,268.40
c. $918.89
d. $1,085.30
1) a. Consider a $1,000 par value bond with a 6% coupon rate paid semiannually, and...
1)
a. Consider a $1,000 par value bond with a 6% coupon rate paid
semiannually, and has 9 years to maturity. What is the price of the
bond if it is priced to yield 7%?
b. Cutler Co. issued 11-year bonds a year ago at a
coupon rate of 7.8 percent. The bonds make semiannual payments. If
the YTM on these bonds is 8.6 percent, what is the current bond
price?
c. A $1000 bond with a coupon rate of 6.2%...
The $1,000 face value Orient bond has a coupon rate of 9%, with interest paid semiannually,...
The $1,000 face value Orient bond has a coupon rate of 9%, with
interest paid semiannually, and matures in 9 years. The bond
current price is $856. The bond can be called in 3 years. The call
premium on the bond is 7% of par. a) What is the bond's
yield to maturity (YTM)? b) What is the bond’s yield to call (YTC)?
c) Would an investor be more likely to earn the YTM or the YTC?
Explain
A bond has a coupon rate of 7.5% paid semiannually, a par value of $1000, a...
A bond has a coupon rate of 7.5% paid semiannually, a par value
of $1000, a maturity of 10 years and a yield to maturity of 9%. You
are thinking about buying this bond but are unsure about the actual
cash outlay required to do so. The last interest payment was
December 13, 2018. If you purchase the bond, the transaction will
settle on February 25, 2019. There are 75 days between these two
dates.
a) Find the clean price...
A. Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate...
A. Bond Prices A $1,000 par bond that pays
interest semiannually has a quoted coupon rate of 7%, a promised
yield to maturity of 7.6% and exactly 4 years to maturity. What is
the bond's current value?
B. Bond Prices A $1,000 par
bond that pays interest semiannually has a quoted coupon rate of
6%, a promised yield to maturity of 4.8% and exactly 12 years to
maturity. The present value of the coupon stream represents ______
of the total...
Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of...
Bond Prices A $1,000 par bond that pays
interest semiannually has a quoted coupon rate of 4%, a promised
yield to maturity of 3.5% and exactly 12 years to maturity. The
present value of the coupon stream represents ______ of the total
bond's value.
A.)37.1%
B.)38.2%
C.)39.5%
D.)36.0%
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