What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000.
Q: What is the value of a bond that matures in 12 years, makes an annual coupon payment of $50, and has…
A: The value of the bond is the current price of the bond. It is the present value of the cash flows…
Q: A bond has a $1,000 par value, 12 years to maturity,and an 8% annual coupon and sells for $980.a.…
A: a) The computation of yield to maturity as follows: Hence, the YTM is 8.27%.
Q: What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that…
A: Yield to maturity(YTM) is the rate of return on bond that is obtained if bond is held till maturity.…
Q: A five-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond…
A: The current yield is the annual interest earned divided by the current price of the bond.
Q: What is the semi-annual coupan bond's norminal yield to maturity (YTM), if the years to maturity is…
A: Bond is debt-instrument that is used by entities t raise debt funds from public-at-large. Bonds pay…
Q: What is the price of a 5-year, 8.4% coupon rate, $1,000 face value bond that pays interest…
A: Using Financial Calculator
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: Assume that a company issued a bond with $1000 face value, 10% coupon rate, 20 years maturity. If…
A: Face value =$1000 Coupon rate =10% Coupon payment =$100 Time =20 years YTM =8% So, present value of…
Q: Suppose a 10-year, $1,000 bond with an 8.4% coupon rate and semi-annual coupons is trading for a…
A: The bond's yield to maturity is the interest rate at which, when the future benefits to be received…
Q: A 30-year bond with par value $1,000 has annual coupons and sells for 1,300. The write-down in the…
A: Bonds are a part of debt instruments having fixed time to maturity. Bonds carry two types of…
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: current price of
A: Bond price refers to the present discounted value based on some future date of cash generated by…
Q: A 13-year bond is selling at $1,040 and its coupon is paid semi-annually. If the YTM is 9%, what is…
A: RATE/ YTM (9%/12) 4.50% PERIOD (13*2) 26 PRESENT VALUE $1,040 FACE VALUE (FV) 1000…
Q: Assuming a market rate of 7.6% over all maturities, the current yield of a bond with a coupon rate…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: The semi-annual bonds of Delta Company have a coupon rate of 6%, a Yield to Maturity of 8%, a par…
A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…
Q: What is the Yield-to-Maturity on a 20-year bond with a 3% coupon (paid at 1.5% every six months)…
A: Using excel rate function
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: What is the yield to maturity of a ten-year, $5,000 bond with a 4.9% coupon rate and semiannual…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: What is the yield to maturity of a nine-year, $10,000 bond with a 5.2% coupon rate and…
A: Bonds are the debt security which is offered or issued by the corporates or the governments to…
Q: What is the semi-annual coupon bond's nominal yield to maturity, if the years to maturity is…
A: Given: Years to maturity = 15 years Coupon rate = 10% Par value = $1000
Q: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…
A: Par Value = 1000 Price of Bond = 105% × 1000 = 1050 Coupon = Coupon Rate / 2 × Par Value Coupon =…
Q: Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to…
A: A bond is a debt instrument that has a specific maturity date. The yield to maturity is the rate…
Q: What is the semi-annual coupon bond's nominal yield to maturity (YTM), if the years to maturity is…
A: YTM stands for Yield to maturity which is defined as the aggregate return anticipated on bond when…
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: What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current…
A: Introduction Bond Duration: Bond period is a metric for determining how much bond prices can…
Q: What is the yield to maturity on a $1,000-face-value discount bond maturing in one year that sells…
A: Given information: Face value of bond is $1000 Price after one year is $800
Q: What is the semi annual coupon bonds nominal yield to maturity (ytm),if the years to maturity is 15…
A: in this problem we have to consider discount rate at which present value of par value and present…
Q: The current price of bond with $1,000 par value, 9.75% annual coupon, and 20 years to maturity is…
A: Using excel RATE function
Q: What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to…
A: First, need to find out Yeild to Maturity Solved using Financial Calculator PV = -959 FV = 1000…
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: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the…
A: A bond is a financial security that is sold by large business entities to raise borrowing funds.…
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: What is the market value of a bond that will pay a total of 60 semi-annual coupons of $50 each over…
A: The market price of bond is calculated as the present value of coupon and face value
Q: What is the current price and Macaulay's duration of a $1,000, 8% coupon bond that pays interest…
A: Calculation of current price and Macaulay’s duration:The bond price is $895.64, and Macaulay’s…
Q: What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of…
A: Yield to maturity (YTM) is the discount rate or the rate of return that an investor earns by holding…
Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. Price of…
Q: What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a…
A: Given: Years = 5 Coupon rate = 7% Yield to maturity = 8% Face value = $1,000
Q: What is the current yield of a bond
A: The current yieldis the equal to the annual interest earned divided by the current price of the…
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: What is the formula used to calculate the yield to maturity on a 20-year coupon bond with a current…
A: Current yield represents the net proportion of the earnings made by the bondholder either in the…
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 =…
Q: Find the yield to maturity on a semi-annual coupon bond with a face value of P 1,000, a coupon rate…
A: Solution:- Yield to maturity is the rate of return earned by the bond holder, if he holds the bond…
Q: What is the yield to maturity of a eight-year, $10,000 bond with a 5% coupon rate and semiannual…
A: The yield to maturity of the bond can be calculated with the help of RATE function of Excel
Q: What is the value of a 6%, five year bond with annual coupons and face value equal to $1,000, if the…
A: The Current price of the Bond is the present value of its expected future cash flow which is…
Q: What is the approximate yield to maturity of a 10% coupon rate, $1,000 par value bond that is…
A: Details given to us are : Par value of bond = $1000 Current price (present value) = $1250 Time…
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)…
Q: Calculate the value of a bond that matures in 15 years and has a $1,000 par value. The annual…
A: Face Value ( Par Value) = 1000 Time Period = 15 years Coupon = Coupon Rate * Face Value = 11%*1000 =…
What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par
Step by step
Solved in 7 steps with 7 images
- 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?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 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?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?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: