Question

Google just issued bonds with a 7.75% coupon, has a par value of $1,000, matures in 15 years but is callable in 5 years at a price of $1,050, and has a value today of $950.00.

What is the yield to maturity on the bond?

What is the yield to call on this bond?

Answer #1

Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments. The bond
can be called at par in three years or anytime thereafter on a
coupon payment date. If the bond is currently trading for $950.00,
then its yield to maturity is closest to:
Select one:
A. 6.5%
B. 6.18%
C. 6.0%
D. 6.8%
Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments....

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%?

A 20-year, 8% annual coupon bond
with a par value of $1,000 may be called in 5 years at a call price
of $1,040. The bond sells for $1,100. (Assume that the bond has
just been issued.)
Basic Input Data:
Years to maturity:
20
Periods
per year:
1
Periods
to maturity:
20
Coupon
rate:
8%
Par
value:
$1,000
Periodic
payment:
$80
Current
price
$1,100
Call
price:
$1,040
Years
till callable:
5
Periods
till callable:
5
a. What is the bond's...

A callable bond with a $1,000 par value and a 7.5% coupon rate
pays interest semiannually. The bond matures in 20 years but is
callable in 5 years at a price of $1,100. Today, the bond sells for
$1,055.84. What is this bond’s yield to call expressed as a bond
equivalent yield?
3.49%
3.90%
6.18%
6.98%
7.80%

IBM has just issued a callable (at par) 10 year, 6% coupon bond
with quarterly coupon payments. The bond can be called at par in
two year or anytime thereafter on a coupon payment date. It has a
price of $97 per $100 face value. What is the bond’s yield to
maturity? What is the bond's yield to call?

Annasam Corporation recently issued 20-year bonds. The bonds
have a coupon rate of 7 percent and pay interest semiannually.
Also, the bonds are callable in 6 years at a call price equal to
115 percent of par value. The par value of the bonds is $1,000. If
the yield to maturity is 8 percent, what is the yield to call?
(Hint: 2 part problem using PV and rate) 7.75% 10.20% 13.45%
14.08%

- Nesmith Corporation's outstanding bonds have a $1,000 par
value, an 8% semiannual coupon, 9 years to maturity, and a 10% YTM.
What is the bond's price?
- A firm's bonds have a maturity of 10 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 5 years at
$1,054.06, and currently sell at a price of $1,105.17. What are
their nominal yield to maturity and their nominal yield to
call?

q1 - A coupon bond that pays interest semiannually has a par
value of $1,000, matures in 5 years, and has a yield to maturity of
6.5%. If the coupon rate is 3.5%, the intrinsic value of the bond
today will be
Q-2 you purchased s coupon bond at a price of 1059. the coupon
rate for the bond is 5% with a face value of 1000. you sold the
bond at 1066.13 one year later. how much us one...

An 8% coupon bond, $1,000 par value, annual payments, 10 years
to maturity is callable in 7 years at a call price of $1,200. If
the bond is selling today for $900, the yield to call is closest
to

The bonds issued by Jensen & Son bear 6% coupon, payable
semiannually. The bond matures in 12 years and has
a $1,000 face value. Currently, the bond sells at par. What is the
yield to maturity?

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