Question

Use the information below to find the price of the bond.

Yield to maturity | .065 |

Periods per year | 2 |

Years to maturity | 10 |

Face value aka maturity Value | 1,000 |

Coupon | .045 |

a. Between $1,439 and $1,443

b. None of the choices is correct

c. Between $854 and $860

d. Between $1,177 and $1,182

Answer #1

Number of periods | 20 | =10*2 | |

Semi-annual interest | 22.5 | =1000*4.5%*6/12 | |

Semiannual Yield to maturity | 3.25% | =6.5%*6/12 | |

PV factor 3.25%: | |||

Semi-annual interest | 14.53935 | =(1-(1.0325)^-20)/0.0325 | |

Principal | 0.52747 | =1/1.0325^20 | |

Amount | PV factor 3.25% | Present value | |

Semi-annual interest | 22.5 | 14.53935 | 327.14 |

Principal | 1000 | 0.52747 | 527.47 |

Total | 854.61 | ||

Between $854 and $860 |
|||

Option c is correct |

Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 4%
Face value $1,000
Annual Coupons
Market Interest Rate 6%
Assuming the YTM remains constant throughout the bond's life, what
is percentage capital gains/loss between periods 3 and 4 ?
Group of answer choices
1.71%
1.86%
1.77%
1.83%

Use the bond term's below to answer the question.
Maturity 6 years
Coupon Rate 4%
Face value $1,000
Annual Coupons
Market Interest Rate 6%
Assuming the YTM remains constant throughout the bond's life, what
is percentage capital gains/loss between periods 3 and 4 ?
Group of answer choices:
A. 1.86%
B. 1.77%
C. 1.71%
D. 1.83%

A corporation issues a 9 percent coupon bond with 13 years
maturity and $1,000 face (par) value. If the current market price
of this bond is $1000, find its yield to maturity.
a. 6.43%
b. 6.04%
c. 9.00%
d. 10.07%
e. none of the answers is correct

Use the approximation formula to calculate the yield to maturity
for a ten-year bond that has a coupon payment of $20, a face value
of $1,000 and a price of $1,040.

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...

i need to know on excel how to calculate the yield to maturity
of a bond with the information below. it can be random numbers
Number of periods
Present value (price)
Face value
Coupon rate
i also need a second calculation that shows me the YTM if this
bond pays semi-annually instead of annually it can be random
numbers.

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...

Interest rate and yield to maturity
(a) Explain the difference between interest rate and yield to
maturity.
(b) Find the present values the following bonds and fill up the
blank cells of present values.
Bond A
Bond B
Bond C
Maturity
3 years
5 years
12 years
Face value
$1,000
$1,000
$1,000
Coupon rate
8%
10%
12%
Yield to maturity
10%
10%
10%
Present value
(c) In the above table, which bond’s present value is equal to
its face value?...

A $1,000 face value
bond currently has a discount rate (yield-to-maturity) of 6.69
percent. The bond matures in three years and pays coupon annually.
The coupon rate is 7 percent. What type of bond it is?
Group of answer choices
Premium bond
Discount bond
Par bond
Zero-coupon bond

Gugenheim, Inc. offers a 7 percent coupon bond with annual
payments. The yield to maturity is 8.3 percent and the maturity
date is 7 years. What is the market price of a $1,000 face value
bond?
A $1000 face value bond has two years left to maturity, 5.6%
coupon rate with annual coupons, and is currently trading at $915.
What is the YTM on this bond?

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