Question

What's the yield to maturity (YTM) of a bond that trades at $865, has 6 years...

What's the yield to maturity (YTM) of a bond that trades at $865, has 6 years left to maturity, a par value of $1,000, & a coupon rate of 10%?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It is assumed that coupon is paid semi annually.

YTM= 13.339798% calculated using RATE function of Excel as follows:

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at...
A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at a yield of 6%. What would be it’s price?
What is the Yield to Maturity (YTM) on a bond that has a market value of...
What is the Yield to Maturity (YTM) on a bond that has a market value of $905, a face value of $1,000, an 8% coupon rate, and a 9-year remaining maturity?
A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of...
A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of 3.7%. It will mature in 16 years and the interest rate will compound annually. What is this bond’s current yield?
What is the Yield to Maturity (YTM) for a bond which pays 6% per year and...
What is the Yield to Maturity (YTM) for a bond which pays 6% per year and matures in 10 years. The current price of the bond is $980, and the Future Value to be at Par $1000.
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and...
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond B has 10 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond C has 10 years to maturity, 4% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Which comparison is TRUE? A. Bond A has higher price sensitivity than Bond B B. Bond C has higher price sensitivity than Bond A C. Bond...
Yield to maturity and future price A bond has a $1,000 par value, 10 years to...
Yield to maturity and future price A bond has a $1,000 par value, 10 years to maturity, and a 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 2 years. What will the price be 2 years from today? Round your answer to the nearest cent. $
1A) Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in...
1A) Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in 18 years, has a coupon rate of 8.8% with semi-annual payments. The par value of the bond is $1000, while the current market value equals $653.08. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) 1B) How much would you pay for a zero coupon bond with a par value of $1000, a maturity of 5...
Suppose that General Electric has a bond issue that has 10 years until maturity. The bond...
Suppose that General Electric has a bond issue that has 10 years until maturity. The bond pays a 6.00% annual coupon rate and has a face value of $1,000. If the bond currently trades at $1,075.00, what is the yield to maturity on the bond?
yield to maturity- you just purchased a bond which matures in 8 years. the bond has...
yield to maturity- you just purchased a bond which matures in 8 years. the bond has a face value if $1,000 and a 6.25% annual coupon rate. the bond has a current yueld of 7.29%. what is the YTM
A 6% coupon, 24-year annual bond has a yield to maturity of 4.4%. Assuming the par...
A 6% coupon, 24-year annual bond has a yield to maturity of 4.4%. Assuming the par value is $1,000 and the YTM does not change over the next year, what will the price of the bond be today? What will the bond price be in one year? What is the capital gains yield for this bond?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT