Question

A zero is priced at $589. It has 8 years to the maturity. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include the percent sign in your answer. (For example, if your answer is 5.67%, type 5.67 without % sign)

What is the price of a $1,000 par value bond with an 8% coupon rate paid annually, and 6 years to maturity if the bond is currently sold at the yield-to-maturity of 7.32%? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

An 8% annual coupon bond, with a face value of $1,000 that matures in 15 years, pays interest annually, and has a yield to maturity of 9.75 percent. What is the current market price of the bond? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

Answer #1

**Answer to
QUESTION-1**

Yield to Maturity [YTM] = Coupon Amount + [ (Face Value – Bond Price) / Maturity Years] / [(Face Value + Bond Price)/2]

= $0 + [ ($1,000 - $589) / 8 Years)] / [($1,000 + $589) / 2]

= [($0 + 51.38) / $794.50] x 100

= 6.84%

**Answer to
QUESTION-2**

Price of the Bond = Present Value of the Coupon Payments + Present Value of the Par Value

= $80[PVIFA 7.32%, 6 Years] + $1,000[PVIF 7.32%, 6 Years]

= [$80 x 4.719814] + [$1,000 x 0.6545095]

= $377.59 + 654.51

= $1,032.09

**The Price of the Bond = $1,032.09**

**Answer to
QUESTION-3**

Current market price of the Bond = Present Value of the Coupon Payments + Present Value of the Par Value

= $80[PVIFA 9.75%, 15 Years] + $1,000[PVIF 9.75%, 15 Years]

= [$80 x 7.715861] + [$1,000 x 0.247703]

= $617.27 + 247.70

= $864.97

**The Current market Price of the Bond =
$864.97**

Q4
5.What is the price of a zero-coupon 24-year maturity bond per
face (par) value of $1,000 if the annual market rates for these
bonds are 5.9%? Answer to the nearest cent, xxx.xx and enter
without the dollar sign.
6.A firm's stock has 50% chance of a 8% rate of return and
a 50% chance of a 23% rate of return. What is the
standard deviation of return for this stock?
Answer as a percent return to the
nearest hundredth of a...

A bond has a $1,000 par value, 8 years to maturity, and a 7%
annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
%
Assume that the yield to maturity remains constant for the next
two years. What will the price be 2 years from today? Do not round
intermediate calculations. Round your answer to the nearest cent.
$

bond has a $1,000 par value, 8 years to maturity, and a 7%
annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
%
Assume that the yield to maturity remains constant for the next
four years. What will the price be 4 years from today? Do not round
intermediate calculations. Round your answer to the nearest cent.
$

A bond has a $1,000 par value, 8 years to maturity, and a 7%
annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
%
Assume that the yield to maturity remains constant for the next
two years. What will the price be 2 years from today? Do not round
intermediate calculations. Round your answer to the nearest cent.
$

A bond has a $1,000 par value, 10 years to maturity, and an 8%
annual coupon and sells for $980.
What is its yield to maturity (YTM)? Round your answer to two
decimal places.
%
Assume that the yield to maturity remains constant for the next
five years. What will the price be 5 years from today? Do not round
intermediate calculations. Round your answer to the nearest cent.
$

A zero coupon bond has a maturity of 11 years. If the annual
yield to maturity is 8.1%, what is the current price of this bond?
(Answer to the nearest penny, i.e. 999.99 but do not use a $
sign)

A 6.7% coupon bearing bond that pays interest semi-annually has
a yield to maturity of 6.3% per year. If the bond has a duration of
13.2 years and the market yield decreases 32 basis points,
calculate an estimate of the percent price change due to duration
alone. (Answer to the nearest hundredth of a percent, i.e. 1.23 but
do not use a % sign).

A bond has a maturity date of 5 years, an annual coupon rate of
10% and an annual yield of 14%. If the coupon payments are monthly,
what is the current price of the bond? Round your answer to the
nearest dollar; do not include the $ sign (i.e., if the answer is
$987.5432, enter it as 987).

1.
Madsen Motors's bonds have 13 years remaining to maturity.
Interest is paid annually; they have a $1,000 par value; the coupon
interest rate is 8%; and the yield to maturity is 6%. What is the
bond's current market price? Round your answer to the nearest
cent.
2.
A bond has a $1,000 par value, 12 years to maturity, and a 9%
annual coupon and sells for $1,110.
What is its yield to maturity (YTM)? Round your answer to two...

1. Madsen Motors's bonds have 6 years remaining to maturity.
Interest is paid annually, they have a $1,000 par value, the coupon
interest rate is 11%, and the yield to maturity is 14%. What is the
bond's current market price? Round your answer to the nearest
cent.
$___
2. A bond has a $1,000 par value, 8 years to maturity, and a 6%
annual coupon and sells for $930.
a. What is its yield to maturity (YTM)? Round your answer...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 28 minutes ago

asked 29 minutes ago

asked 38 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago