Question

Consider the following bond issued by

Walmart: coupon rate: 4.828% face value: $1,000 maturity date: July 15, 2040 semi-annual coupons settlement date: March 8, 2020 yield (YTM): 4.164% most recent coupon payment date: January 15, 2020

What is the value of the bond? (Equivalently, we are calculating the “dirty price”.) Express your answer as the dollar and cents price for a bond with $1,000 face value.

Answer #1

Assume that the XYZ Company issued a bond with a face value of
$1,000, and coupon rate of 10%. if the YTM is now 6% and there are
14 years left to maturity and the company gives semi annual coupon.
What is the bond price?

A $10,000 face value 12% coupon corporate bond matures on March
15, 2030. You purchase the
bond on July 17, 2019 (M1) at a quoted price of 99.475. Please,
compute the bond’s YTM, its
invoice price as of the settlement date (M3), and its dirty price
on the purchase date (M1). State
the yield as a percentage with 6 digits after the decimal point and
the prices in dollars and cents.
Show all calculator inputs. You must use your calculator’s...

J&J Manufacturing just issued a bond with a $1,000 face
value and a coupon rate of 7%. If the bond has
a life of 20 years, pays semi-annual coupons, and the yield to
maturity is 7.5%, what is the value
of the bond? (948.62)
Answer provided. Please explain and how to do it.

A 15-year bond with a face value of $1,000 was issued at a price
of $923.25 on 1 July 2018. The bond pays annual coupon at 3.5% p.a.
Bailey purchased the bond on 1 July 2020 at a price that gives her
a yield to maturity of 4% p.a.

Given that settlement date of a bond is July 3, 2018 and the
previous coupon date was June 30, 2018 and maturity date is June
30, 2020. What would be the fraction (f) to use to find the
bond's dirty price on August 1, 2018?

A bond was issued three years ago at a price of $1,040 with a
maturity of six years, a yield-to-maturity (YTM) of 5.25%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
risen to 6.50% compounded semi-annually?

A bond was issued three years ago at a price of $1,052 with a
maturity of six years, a yield-to-maturity (YTM) of 6.75%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
risen to 8.00% compounded semi-annually?

A bond was issued three years ago at a price of $934 with a
maturity of six years, a yield-to-maturity (YTM) of 4.75%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
fallen to 3.50% compounded semi-annually?

A bond was issued three years ago at a price of $1,060 with a
maturity of six years, a yield-to-maturity (YTM) of 7.75%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
risen to 9.00% compounded semi-annually?

A bond was issued three years ago at a price of $1,040 with a
maturity of six years, a yield-to-maturity (YTM) of 5.25%
compounded semi-annually, and a face value of $1,000 with
semi-annualy coupons. What is the price of this bond today
immediately after the receipt of today's coupon if the YTM has
risen to 6.50% compounded semi-annually?

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