Question

The bond costs $900 and will pay you $1000 when it matures in 10 years! The current yield is 5%. What is the YTM of this bond? What is the appropriate price of the bond, if the current YTM on similar bonds is 4.4%?

If you save $500 per month for 45 years, how much can you accumulate? Assume monthly compounding and that you can earn 9%, on average, on your investments.

If you believe you need $3 million to retire, how long will it take you to achieve this milestone if you save $5,000 per year at a 9% rate of return?

Answer #1

1)

Coupon payment = $900*5% = $45

Coupon rate = $45/1,000 = 4.50%

You are currently 30 years old. You intend to retire at age
60, and you want to be able to receive a 20-year, $100,000
beginning-of-the-year annuity, with the first payment to be
received on your 60th birthday. You would like to save enough money
over the next 15 years to achieve your objective; that is, you want
to accumulate the necessary funds by your 45th birthday.
A. If you expect your investments to earn 12% per year over
the next...

You purchased a bond at a price of $13,100. In 15 years when the
bond matures, the bond will be worth $30,000. It is exactly 7 years
after you purchased the bond and you can sell the bond today for
$21,300. If you hold the bond until it matures, what annual rate of
return will you earn from today?
rev: 01_29_202

A bond has a coupon ate of 10%, a 1000$ face value, matures in 5
years, has a yield of maturity of 15% percent and pays interest
annually. What is the current yield?

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

Tong corporation's bonds have 5 years to maturity with $1000 par
value, assume that this bond pays coupon interest of 8% with
semiannual compounding. YTM is 9%. What is bond's current price?
Answer to the nearest cent

You plan to save $1000 per year in your retirement account
beginning today. You expect your retirement account has a 6% annual
return. How much will you have in your retirement account 25 years
from now (Note: this is an annuity due)?
Suppose the U.S. Treasury offers to sell you a bond for $900.
No payments will be made until the bond matures 3 years from now,
at which time it will be redeemed for $1,000. What interest rate...

You want to have $2.4 million when you retire in 36 years. You
feel that you can save $420 per month until you retire. What APR do
you have to earn in order to achieve your goal?
Multiple Choice
11.13%
11.93%
12.72%
12.37%
10.28%

What would you pay for a $205,000 debenture bond that matures in
15 years and pays $10,250 a year in interest if you wanted to earn
a yield of: 2%,3%, 4%

What would you pay for a $180,000 debenture bond that matures in
15 years and pays $9,000 a year in interest if you wanted to earn a
yield of:
2%, 3%, 4%?

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...

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