A 20-year, $1,000 par value bond has a 9.5% yield to maturity. The bond currently sells for $867.81. If the annual coupon rate remains at its current rate, what will the price be 5 years from now?
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?A three-year bond with $1,000 face value and 10% coupon rate is sold for $1,000 today. If one year later the market interest rate increases to 15%, then this bond will have a market price of _______ next year.A 5-year bond has a face value of $1,000, matures in 5 years, pays interest semi-annually, and has a coupon rate of 6.35 percent. The next interest payment will be paid 2 months from today. What is the dirty price of this bond if the market rate if return is 6.2 percent?
- A 10 years $1000 par value bond has an 10% annual coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price will be 4 years from now? State whether it is a discount or Premium bond?A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. Assume a face value of $1,000 and annual coupon payments. 1) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time? 2) What will be the rate of return on the bond? 3) If the inflation rate during the year is 3%, what is the real rate of return on the bond? Please show workings with formulas.A 20-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $950. If the yield to maturity remains at its current rate, what will the price be 10 years from now?
- A 10-year, 12% semiannual coupon bond currently sells for $1,100. If the yield to maturity in the next 6 years equal its current yield, what will the price be 6 years from now?A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. Assume a face value of $1,000 and annual coupon payments.a) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time?b) What will be the rate of return on the bond? c) If the inflation rate during the year is 3%, what is the real rate of return on the bond? Assume annual interest payments.a two-year bond with $1,000 face value and 10% coupon rate is sold for $1,000 today. If one year later the market interest rate decreases by 1%, then this bond will have a market price of $_____ (round to the nearest integer, no decimal point) then.
- A bond has 10 years until maturity, a coupon rate of 7.2%, and sells for $1,180. Interest is paid annually. (Assume a face value of $1,000.) If the bond has a yield to maturity of 10.8% 1 year from now, what will its price be at that time?A bond with 5 years to maturity, a face value of $2,000 and a coupon rate of 8.0% is selling for $1750. What is its yield to maturity? If the yield changes to 8.0%, what will be the new price of the bond? (Assume annual coupon payments.)A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yieldto maturity remains at its current rate, what will the price be 5 years from now?