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Q: suppose a bond has a $1,000 par value, 10 year to maturity a 7% annual coupon, and sells for $985…
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A: a) The computation of yield to maturity as follows: Hence, the YTM is 8.27%.
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A: Yield to maturity(YTM) is the rate of return on bond that is obtained if bond is held till maturity.…
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A: Calculation of price:
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A: Given data: YTM = 9.631% Years to maturity = 18 years Coupon rate = 9% Par value = GHS 1000
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A: Coupon rate = 0.038 (i.e. 3.8%) Annual coupon amount (C) = $38 (i.e. $1000 * 0.038) Maturity period…
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A: Dear student , we need to use excel RATE function to calculate yield to maturity
Q: yield to maturity
A: Introduction: Yield to maturity is a total return that is earned by the investor from a bond if the…
Q: Suppose there is a bond with a par value of $1,000 that matures in 6 years. Coupon payments are made…
A: Information Provided: Par value = $1000 Maturity = 6 years Coupon rate = 9% Yield to maturity = 12%
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Q: Assume the bonds par is $1000. A 13 yr bond is selling at $1,040 and its coupn is paid semi…
A: Face value = 1000 YTM years = 13 YTM rate = 9% Present value = 1040
Q: % ( assume What is the current yield of a bond with a 8% coupon, 5 years until maturity, and a price…
A: To calculate current yield we will use the following formula Current yield = Annual coupon…
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A: Working note:
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A: Current yield is the rate of annual income that can be earned by the bondholder.
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A:
Q: A bond currently sells for P850. It has a 8year maturity, an annual coupon of P80, and a par value…
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for…
A: In the given above question we need to compute the yield to maturity on a bond. We can solve this…
Q: A zero-coupon bond that matures in 15 years is currently selling for $209 per $1,000 par value. What…
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Q: Suppose that a 20-year 7% bond selling for $816 and held to maturity has reinvestment rate of 6%.…
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Q: A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.…
A: Yield to maturity (YTM) is the total return expected on the bond if the bold is held till maturity.…
Q: A 10 year bond with 5% annual coupon and $1,000 par value sells for $1,200. What is the…
A: Face value = $1000 Duration (n) = 10 years Coupon = 5% of $1000 = $50 Bond price = $1200 Let r =…
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A: Given: Face value = Rm 1,000 Years = 10 Coupon rate = 10%
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A bond has $1000 par value, 10 years to maturity and 7% annual coupon and sells for $985.
What is its yield to maturity (YTM)?
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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?Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?
- Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has a face value of 1,000 and an 8% annual coupon. The bond has a current yield of 8.21%. What is the bonds yield to maturity?Bond Value as Maturity Approaches An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of 1,000, and has a yield to maturity equal to 9.6%. One bond, Bond C, pays an annual coupon of 10%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 9.6% over the next 4 years, what will be the price of each of the bonds at the following time periods? Fill in the following table: