A $1000 per value bound sells for $ 1216. It matures in 20 years has a 26 percent coupon pays interest semiannual and can be called in 5 years at a price of $1156. What is the yield to call. A. 25.78 b. 13.14 c. 26. 28 d. 12. 89
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A $1000 per value bound sells for $ 1216. It matures in 20 years has a 26 percent coupon pays interest semiannual and can be called in 5 years at a price of $1156. What is the yield to call.
A. 25.78
b. 13.14
c. 26. 28
d. 12. 89
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- 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?Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity. The bonds have a face value of 1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?You are purchasing a 19.5 years, zero- coupon bound . The yield to maturity is 6.51percent compound semi- annually and the face value is 1000. What is the current market price
- A Treasury STRIPS matures in 12 years and has a yield to maturity of 7.00 percent. Assume the par value is $55,000. What is the current price of this STRIPS?what is the yield to maturity if it has 15 years to mature and 4.75% as coupon paid semiannually and face value of 10000$ with a current trading price of 2246.88$A 9-yearbond pays interest of $28.10 semiannually, has a face value of $1,000, and is selling for $848.90. What are its annual coupon rate and yield to maturity? The annual coupon rate is__________%.
- Given a 10 year, $5000 bond with coupon rate 3% per year convertible semi - annually and nominal annual yield rate 4%, it is sold at time 2.5 years at a price such that the seller and buyer both have nominal annual yield of 4%. What is that price? Use Price plus accrued value formula.Let z(k) denote the k-year continuously compounded zero-coupon yield for the current term structure. You are given thatz(1) = 0.035, z(2) = 0.041, z(3) = 0.045, z(4) = 0.049, z(5) = 0.051, z(6) = 0.053 Compute the one-year forward rate in effect 4 years from now. Compute the two-year forward rate in effect 4 years from now. Compute the three-year forward rate in effect 3 years from now.Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 8.5 percent. (Assume annual compounding and a par value of $1,000.)
- A 25,000 5% bond with coupons payable semi-annually is redeemable at 97% at the end of 10 years. If the market price is 102, what is the yield rate compounded semi-annually? (Yield or Investment Rate)A Treasury STRIPS matures in 7 years and has a yield to maturity of 9.4 percent. Assume the par value is $100,000. a. What is the price of the STRIPS? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.)what is the yield to maturity of a 10 year $1000 bind with a 5.5% semi-annual coupon that is currently trading for $1060?
