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The equivalent annual-pay yield-to-maturity (YTM) for a 5.28% coupon monthly-pay bond is closest to
5.21%.
5.31%.
5.41%.
5.51%.
Step by step
Solved in 2 steps
- 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?The equivalent annual-pay yield-to-maturity (YTM) for a 11.35% coupon weekly-pay bond is closest to A. 10.21%. B. 11.09%. C. 12.01%. D. 13.22%.(a) Compute the market price (Vb) of the following bonds: (6)$1,000 par value, 10-yr maturity, and 8% coupon rate that is paid semi-annually? Assume the yield to maturity of 12%.$1,000 par value, 10-yr maturity, and 6% coupon rate that is paid semi-annually? Assume the yield to maturity of 12%.$1,000 par value, 10-yr maturity, and 8% coupon rate that is paid semi-annually? Assume the yield to maturity of 6%.(b) Based on your answers comment on the relationship (what happens to one variable when the other goes up/down) of (a) price with yield to maturity and (b) price with coupon rate. (4)
- Given the following information, what is the approximate convexity measure for the bond if the yield changes by 90 basis points? Coupon rate 5% YTM 7% Maturity (in years) 5 FV $1,000Find the current yield (as a %) of a bond whose coupon rate is listed as 4.375 and currently selling at a premium of 104.375. Round to the nearest tenth percent.Find the current yield as a percent of a bond, whose coupon rate is listed as 8.875 and currently selling at a premium of 108.875. Round to the nearest tenth percent.
- The current price of an annual coupon bond is 110. The derivative of the price of the bond with respect to the yield to maturity is -270. The yield to maturity is an annual effective rate of 7%. Calculate the duration of the bond.Find the Yield to Maturity for Zero-Coupon Bonds for the following 1 year Maturity, Price $96.62 2 years Maturity, Price $92.45 3 years Maturity, Price $87.63 4 years Maturity, Price $83.06A bond for the Chelle Corporation has the following characteristics: Maturity - 12 years Coupon - 10% YTM - 9.5% Macaulay duration - 5.7 years Convexity – 48 Noncallabe Calculate the approximate price change for this bond using both duration and convexity in the computation, one again assuming that its yield to maturity decline by 300 basis points.
- Suppose a ten-year, $1,000 bond with an 8.0% coupon rate and semiannual coupons is trading for $1,034.74. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?Which of the following relationships is most accurate regarding a 20-year corporate bond that sells for $958 if it has a 3.75% coupon, paid semi-annually? Select one O A. The YTM < current yield. B. The current yield > YTM. C. The coupon rate < current yield. D. The risk-free rate> YTM.Prepare a duration table for a zero-coupon bond using the following assumptions: a. $100,000 par value b. 10-year maturity c. Discount Rate of 12%