Question

Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74.

A: What is the bond’s yield to maturity (expressed as an APR with semiannual compounding)? Coupon? Number of periods? Yield to Maturity?

B: If the bond’s yield to maturity changes to 9% APR, what will the bond’s price be? Semi-annual yield? Bond Price?

Answer #1

Suppose a 10-year, $ 1,000 bond with a 10% coupon rate and
semiannual coupons is trading for a price of $1,177.98. a. What is
the bond's yield to maturity (expressed as an APR with
semiannual compounding)? b. If the bond's yield to maturity
changes to 8 %8% APR, what will the bond's price be?

5) Suppose a 15-year, $1000 bond with an 8% coupon rate and
semiannual coupons is trading for $1374.74.
a. What is the bond’s yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond’s yield to maturity changes to 4% APR, what will
the bond’s price be?

Suppose a 10-year, $1,000 bond with a 11% coupon rate and
semiannual coupons is trading for a price of $945.47.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 10% APR, what
will the bond's price be?

Suppose a 10 -year, $ 1,000 bond with a 10% coupon rate and
semiannual coupons is trading for a price of
$ 1,127.31
a. What is the bond's yield to maturity
(expressed as an APR with semiannual compounding)?
b. If the bond's yield to maturity changes to
8% APR, what will the bond's price be?

Suppose a 10 year bond with an 8/7% coupon rate and
semi annual coupons is trading for $1035.91
a. What is the bonds yield to maturity ( expressed as an APR with
semiannual compounding)?
b. If the bonds yield to maturity changes to 9/1% APR what will be
the bonds price?

Suppose a 10-year, $1,000 bond with an 8.8% coupon rate and
semi-annual coupons is trading for a price of $1,035.81.
a. What is the bond's yield to maturity (expressed as an APR
with semi-annual compounding)?
b. If the bond's yield to maturity changes to 9.1% APR, what
will the bond's price be?

Suppose a ten-year $1000 bond with an 8% coupon rate and
semiannual coupons is trading for $1034.74.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9%APR, what will
be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.5 % coupon rate and
semiannual coupons is trading for $1,035.81.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.2 % APR, what
will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and
semiannual coupons is trading for $1,035.05.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.4% APR, what
will be the bond's price?

Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and
semiannual coupons is trading for $1,035.74.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.6% APR, what
will be the bond's price?

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