Question

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 years, if your required rate of
return is 8.4%? Assume annual discounting. (*Round your answer
to the nearest penny.*)

1C) What is the current yield on a zero coupon bond with a
remaining life of 9 years, a yield to maturity of 8.3%, and a par
value of $1000? (*Round to 100th of a percent and enter as a
percentage, e.g. 12.34% as 12.34 and state as an annual
rate.*)

ANSWER

Answer #1

5a- Compute the yield to maturity for a zero coupon bond with a
maturity of 14 years and a face value of $1000. The bond is selling
for $519.52. (Assume annual discounting.) (Round to 100th of a
percent and enter as a percentage, e.g. 12.34% as 12.34)
Answer:
5b- Compute the current yield on a bond with a yield to maturity
of 10.3%, a par value of $1000, a coupon rate of 6.0% paid
semi-annually, a remaining life of 18...

1A) Compute the yield to maturity for a zero coupon bond with a
maturity of 13 years and a face value of $1000. The bond is selling
for $594.06. (Assume annual discounting.) (Round to 100th of a
percent and enter as a percentage, e.g. 12.34% as 12.34)
1B) Your business manager forwards the following information to
you. Your businesses earned a real rate of return of 4.4% last year
and inflation for the same period was 1.6%. What was your...

What is the current yield for a bond that has a coupon rate of
8.9% paid annually, a par value of $1000, and 25 years to maturity?
Investors require a return of 12.5% from the bond. (Round to
100th of a percent and enter as a percentage, e.g. 12.34% as
12.34)

Price the following:
12-year, $1000 par value, 6% semi-annual coupon bond whose
current nominal yield-to-maturity (YTM) is 8%.
10-year, $1000 par value, 8% quarterly coupon bond whose current
nominal YTM is 7%.
30-year, $1000 par value, zero-coupon bond whose current nominal
YTM is 9.5%.
13-year, $1000 par value, 8% monthly coupon bond whose current
nominal YTM is 10%.
5-year, $500 par value, 8% semi-annual coupon bond whose current
nominal YTM is 8.25%

Gugenheim, Inc. offers a 7 percent coupon bond with annual
payments. The yield to maturity is 8.3 percent and the maturity
date is 7 years. What is the market price of a $1,000 face value
bond?
A $1000 face value bond has two years left to maturity, 5.6%
coupon rate with annual coupons, and is currently trading at $915.
What is the YTM on this bond?

A zero coupon bond has a maturity of 11 years. If the annual
yield to maturity is 8.1%, what is the current price of this bond?
(Answer to the nearest penny, i.e. 999.99 but do not use a $
sign)

Yield to Maturity and Current Yield
You just purchased a bond that matures in 5 years. The bond has
a face value of $1,000 and has an 8% annual coupon. The bond has a
current yield of 8.21%. What is the bond's yield to maturity? Round
your answer to two decimal places.

1. Today, a bond has a coupon rate of 8.18 percent, par value of
1,000 dollars, YTM of 6 percent, and semi-annual coupons with the
next coupon due in 6 months. One year ago, the bond’s price was
1,022.04 dollars and the bond had 19 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.
2....

Calculate the yield to maturity
on the following bonds.
a.
A 8.7 percent coupon (paid semiannually) bond, with a $1,000
face value and 11 years remaining to maturity. The bond is selling
at $920. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
year
b.
An 5.8 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$910. (Do...

Calculate the yield to maturity
on the following bonds.
a.
A 8.2 percent coupon (paid semiannually) bond, with a $1,000
face value and 22 years remaining to maturity. The bond is selling
at $895. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
year
b.
An 5.3 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$915. (Do...

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