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Calculate the yield on a bond that has a coupon rate of 6% and is now selling for $1,050?
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- 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?What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3 percentage points, causing investors to require a 13% return? Would we now have a discount or a premium bond? What would happen to the bond’s value if inflation fell and rd declined to 7%? Would we now have a premium or a discount bond? What would happen to the value of the 10-year bond over time if the required rate of return remained at 13%? If it remained at 7%? (Hint: With a financial calculator, enter PMT, I/YR, FV, and N, and then change N to see what happens to the PV as the bond approaches maturity.)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?
- A BOND IS SELLING AT 860 DOLLAR AND COUPON RATE IS 0.06 WHAT IS THE CURRENT YIELD?A bond with an annual coupon rate of 4.8% sells for $970. What is the bond’s current yield?Suppose that you buy a 3-year coupon bond which sells at par. Its nominal value is £1,000 and its coupon rate is 6%. What is the price you buy the bond today:
- What is the yield to maturity of a bond that pays an 5.02% coupon rate with annual coupon payments, has a par value of $1,000, matures in 10 years, and is currently selling for $927.87?We have a bond with a coupon rate of 12%, 3 years to maturity, a par value of $1,000, and the yield to maturity of 10%. 1) Figure out the quoted bond price?a 1, 000 treasury bond with a coupon rate of 5.4% that has a narkemarket value of $900. what is the current yield?