Question

1, A $1,000 par value bond with a 6% coupon rate is currently selling for 90. This bond has 15 years remaining before it matures. If you purchase this bond today and hold it to maturity, what YTM will you earn?

2, A $1,000 par value bond with a 8% coupon rate is currently selling for 110. This bond has 20 years remaining before it matures. If you purchase this bond today and hold it to maturity, what YTM will you earn?

Answer #1

Fresh Fruit, Inc. has a $1,000 par value bond that is currently
selling for $867. It has an annual coupon rate of 10.51 percent,
paid semiannually, and has 26-years remaining until maturity. What
would the annual yield to maturity be on the bond if you purchased
the bond today and held it until maturity?

Consider a $1,000 par value bond with a 9% annual coupon. The
bond pays interest annually. There are 20 years remaining until
maturity. You have expectations that in 5 years the YTM on a
15-year bond with similar risk will be 7.5%. You plan to purchase
the bond now and hold it for 5 years. Your required return on this
bond is 10%. How much would you be willing to pay for this bond
today?
Select one:
a. $1044
b....

Consider a $1,000 par value bond with a 9% annual coupon. The
bond pays interest annually. There are 20 years remaining until
maturity. You have expectations that in 5 years the YTM on a
15-year bond with similar risk will be 7.5%. You plan to purchase
the bond now and hold it for 5 years. Your required return on this
bond is 10%. How much would you be willing to pay for this bond
today?
Select one:
a. $1132
b....

A coupon bond has an 8% coupon rate and has a par value of
$1,000, matures in 5 years, and has a yield to maturity of 10%.
What will be the intrinsic value of the bond today if the coupon
rate is 8%?

Consider a coupon bond that has a par value of $1100 and a
coupon rate of 10% The bond is currently selling for
$1159.66 and has 2 years to maturity. What is the bond's yield
to maturity(YTM)? The yield to maturity is

A bond is currently priced at $1050 on a par value of $1,000.
Its term to maturity is 20 years and its coupon rate is 8% (stated
annually, paid semiannually). If you buy the bond, and hold it to
maturity, what would be the yield to maturity?

A coupon bond that pays interest annually is selling at a par
value of $1,000, matures in five years, and has a coupon rate of
9%. The yield to maturity on this bond is
Select one:
a. 8.0%.
b. 8.3%.
c. 9.0%.
d. 10.0%.
e. None of the options are correct.

2. Today, a bond has a coupon rate of 8.4 percent, par value of
1,000 dollars, YTM of 4.82 percent, and semi-annual coupons with
the next coupon due in 6 months. One year ago, the bond’s price was
1,041.94 dollars and the bond had 17 years until maturity. What is
the current yield of the bond today? Answer as a rate in decimal
format so that 12.34% would be entered as .1234 and 0.98% would be
entered as .0098.
3....

18. Compute the yield to maturity of a $2,500 par value bond
with a coupon rate of 7.8% (quarterly payments - that is, four
times per year) that matures in years. The bond is currently
selling for $3,265
19. What is the yield to maturity of a $ par value bond with a
coupon rate of 9.5% (semi-annual coupon payments) that matures in
28 years assuming the bond is currently selling for
$838.137
par
value 1000

A $1,000 par value, 10% annual coupon bond matures in 3 years.
The bond is currently priced at $1,106.92 and has a YTM of 6.0%. a.
What is the Macaulay duration? b. What percentage will the bond's
price change if market interest rates decrease by 1%?

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