A bond matures in 15 years and pays an 8 percent annual coupon. The bond has a face value of $1,000 and currently sells for $985. What is the bond’s current yield and yield to maturity?

Q: A bond has a coupon payment of $22 every 6-months. It is trading at 98.6, is rated BBB, and has 8…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years…

A: If bond is called it will be called in 4 years. Instead of calling at 10 Years. So, for calculating…

Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years…

A: Bonds are debt instruments issued by the borrowing organization to the investors. Bonds can be…

Q: A bond that matures in four years, has a coupon rate of 10% and has a maturity value of US$ 100. The…

A: We require to calculate the present value of bond in this question from the following details:…

Q: A bond matures in 12 years, and pays an 8 percent annual coupon. The bond has a face value of…

A: Bonds are debts instruments that are issued by entities to raise funds and meet their capital…

Q: A 11​-year bond pays interest of $28.60 ​semiannually, has a face value of $1,000​, and is selling…

A: Semi Annual Interest Time Period = 11 Years × 2 =22 semi annual periods Face Value = 1000 Price of…

Q: A firm has a bond issue with face value of $1,000, a 7% coupon rate, and nine years to maturity. The…

A: The price of the bond (PV) is $1,067.89. The face value of the bond (FV) is $1,000. The maturity…

Q: A 12-year bond has a 9 percent annual coupon, a yield to maturity of  8 percent, and a face value of…

A: The bond price is calculated as sum of present value of cash flows

Q: A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to…

A: Given: Years = 15 Coupon = 9% Redeemable value = P6,300 Yield = 7.5% Purchase price = P6,750

Q: what is its yield-to-maturity?

A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…

Q: A $2,000 bond with a 3.5% coupon compounded semi-annually is currently priced to yield 9% with 17…

A: The price of the bond is the amount the investors are willing to pay for the bond.

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: llais Company’s bond has an $85 annual interest payment that will mature in 10 years at a value of…

A: The yield of the bond is the required rate of return on the investment made by the bondholders. The…

Q: A 30-year bond has a par value of $1,000, a coupon rate of 9% with semiannual coupon payment, and a…

A: The computation of current price of bond as follows: Hence, the current price of bond is $757.58.

Q: Party Lover, Inc. has a 9% coupon bond that matures in 12 years. The bond pays interest…

A: Bond is a type of fixed income security as it provides fixed coupon amounts to the bondholders. The…

Q: A 20-year Treasury bond is issued with face value of $1,000, paying interest of $68 per year. If…

A: Coupon rate can be calculated by using this equation. Coupon rate =InterestFace value*100

Q: A coupon bond that pays interest of $60 annually has a par value of $1000, matures in 4 years, and…

A: Working note:

Q: A bond has nine years to​ maturity, a $2,000 face​ value, and a 5.5​% coupon rate with annual…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: A bond that matures in 7 years sells for $1,020. The bond has a face value of$1,000 and a yield to…

A: Given information: Face value of bond is $1,000 Price of bond is $1,020 Yield to maturity is…

Q: A 12-year bond has a 9 percent annual coupon, a yield to maturity of 8 percent, and a face value of…

A: Bond value is the present value of all the cash flow the bond  will generate in its lifetime, it…

Q: Suppose you purchase a five-year, 12 percent coupon bond (paid annually) that is priced to yield 10…

A: Bonds are the debt instruments which are lent by the government or a corporation which gives fixed…

Q: A bond that matures in 6 years sells for $950. The bond has a face value of $1,000 and a 5.5% annual…

A: Current yield is the rate of annual income that can be earned by the bondholder.

Q: lue of a bond today is $1,055 and matures in 12 years’ time and a coupon rate of 10.5% paid…

A: Price of bond is discount rate at which price of bond present value of coupon payment and present…

Q: A bond has a face value of $1,000, an annual coupon rate of 7 percent, yield to maturity of 10…

A: given, face value = $1000 coupon = 7% YTM = 10% years to maturity = 20

Q: If a $1,000 bond with a 4 percent coupon (paid annually) and a maturity date of ten years is selling…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: The S.Alam Company bond currently sells for $955, has a 12% coupon rate and a $1,000 par value, pays…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: A bond with 10 years to maturity has a face value of $1,000. The bond can be called in four years…

A: The price of the bond will depend upon the yield, the call price, the time to call and the coupoon.

Q: A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the…

A: Par value = £100 Coupon rate = 9% Coupon rate = 100*0.09= £9 Yield to maturity = 12% Years to…

Q: You purchase a bond for $825. It pays a semi-annual coupon of 4 percent, and the bond matures after…

A: Yield-to-Maturity refers to return rate that a bond will effectively generate each year if bond is…

Q: Consider a bond paying an annual coupon of $70 with a face value of $1,000. Calculate the yield to…

A: using financial calculator, N(time to maturity) =18 PV (Price of bond) = -1150 FMT (annual Coupon) =…

Q: A bond makes two $45 coupon payments each year. Given the bond's par value is $1,000 and its price…

A: Given, Semi -annual coupon =$45

Q: A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of $1,000, and…

A: The formula to calculate price of bond is given below,

Q: A bond that matures in 8 years has a par value of $1,000 and an annual coupon payment of $70, its…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face…

A: Par value of bond = $ 1000 Coupon rate = 5.25% Semi annual coupon amount = 1000*2.625% = $ 26.50…

Q: The face value of the bond is $10,000 with annual coupon payment. The maturity period is 6 years…

A: The bond duration is used to measure the actual time it takes for the bond to recover its costs…

Q: A bond has a $1,000 face value, a market price of 1,036, and pays interest payments of $70 every…

A: Given details are : Face value = $1000 Market price = $1036 Interest payment every year = $70 From…

Q: A bond has a $1,000 par value, a 13% annual coupon, and matures in 5 years.  What is the price of…

A: Computations as follows: Hence, the price of the bond is $1036.05.

Q: A bond has a $1,000 par value, a 12% semiannual coupon, and matures in 4 years.  What is the price…

A: Computations as follows: Hence, the bond price is $1000.00.

Q: A bond currently trades at $1,153.72.  It has a 12% annual coupon, paid semi-annually, and 15 years…

A: The yield to maturity is the return expected by an investor invested in bond if kept till maturity.…

Q: A $1,000 bond has a coupon of 8 percent and matures after eight years. Assume that the bond pays…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: What is the approximate yield to maturity (YTM) of a bond that is currently selling for $1,150 in…

A: Par value  (F)= $ 1000 Coupon rate = 14% Coupon amount (C) = 1000*0.14 = $ 140 Years to maturity (N)…