Question

1. What is the yield on a 18-year bond that pays a semi-annual coupon of $9 and sells for $1000. Answer as a percent.

2. You are looking at a 9-year zero-coupon bond that has a yield to maturity of 1.4% . What is the value of the bond? Assume semi-annual compounding.

Answer #1

1.

Coupon = $9

Face Value/ Redemption Value = $1000

Current Price = $100

Semi Annual Yield = (Coupon/Interest +( Face Value - Price)/period)/ (Face Value +Price)/2 = (9+ (1000-1000)/18 )(1000+1000)/2 = 9/1000 =0. 9%

Yield = 0.9% *2 =1.8%

**Yield = 1.8%
p.a**

2

Years= 9-year

Type = zero-coupon bond

Yield to maturity = 1.4% .

Semi annual yield = 1.4/2 = 0.7%

Period = 9×2 =18

Face Value = 1000(assumed)

Value of the bond = 1000/(1.007)^18 = $882

**Value of Zero-coupon bond =
$882**

What is the yield on a 7-year bond that pays a semi-annual
coupon of $12 and sells for $1000. Answer as a percent.

Using semi-annual compounding, what is the yield to
maturity on a 4.65 percent coupon bond with 18 years left to
maturity that is offered for sale at $1,025.95? Assume par value is
$1000.

you are looking at a 24 year zero-coupon bond that has a yield
to maturity of 2.7%. what is the value of the bond? assume semi
annual compounding

1. A 100-year corporate bond has a coupon rate of
9% with semi-annual payments. If the current value
of the bond in the marketplace is $400, then what is the
Yield-to-Maturity (YTM)?
2. How much do you pay for a zero coupon government bond that
has a term of 30 years, an interest rate of 9%,
and a par value of $1000.
3. A taxable bond has a yield of 9% and a
municipal bond has a yield of 4.6%....

1. A 9-year zero coupon bond has a yield to maturity of
11.8 percent, and a par value of $1,000. What is the
price of the bond?
2. A 7-year bond has a 8 percent coupon rate with the interest
paid in semi annual payments. The yield to maturity of
the bond is 2.3 percent, and a face value of
$1,000. What is the price of the bond?
3. A 12-year bond has a 9 percent annual coupon, a yield to
maturity of...

1.A 12-year bond has a 9 percent annual coupon, a yield to
maturity of
11.4 percent, and a face value of $1,000. What is the price of the
bond?
2.You just purchased a $1,000 par value, 9-year, 7 percent
annual coupon bond that pays interest on a semiannual basis. The
bond sells for $920. What is the bond’s nominal yield to
maturity?
a. 7.28%
b. 8.28%
c. 9.60%
d. 8.67%
e. 4.13%
f. None of
the above
3.A bond with...

What is the price of a bond paying a 6% semi-annual coupon bond
if the yield on the bond is 7.5% and the bond has 3 years to
maturity? Assume the face value of the bond is $1000.

A five-year 2.4% defaultable coupon bond is selling to yield 3%
(Annual Percent Rate and semi-annual compounding). The bond pays
interest semi-annually. The risk-free yield is 2.4%. Therefore, its
current credit spread is 3% -2.4% = 0.6%. Two years later its
credit spread increases from 0.6% to 1% while the risk-free yield
doesn’t change. Assuming the face value of the coupon bond and
risk-free bond is 100. The Return in yield in two year = 2.473%
(annual) Value of bond...

You are purchasing a 20-year, zero-coupon bond. The annual yield
to maturity is 9.80 percent and the face value is $1,000. What is
the current market price? Assume (r) is bi-annual for compounding
purposes in case of zero-coupon bond.

A bond pays a semi-annual coupon at an APR of 10.00%. The bond
will mature in 7.00 years and has a face value of $1,000.00. The
bond has a yield-to-maturity of 12.50% APR. What is the current
yield for the bond? What is the current yield for the bond?
A bond has ten years until maturity. The face value on the bond
is $1,000.00, while the coupon rate attached to the bond is 9.75%.
The bond pays coupons on an...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 6 minutes ago

asked 7 minutes ago

asked 9 minutes ago

asked 9 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 11 minutes ago

asked 11 minutes ago

asked 13 minutes ago