Question

if you paid 980 for a 10 year bond that pays 70 a year in interest......

if you paid 980 for a 10 year bond that pays 70 a year in interest... what is the bond's yield to maturity?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A corporate bond pays interest twice a year and has 16 years to maturity, a face...
A corporate bond pays interest twice a year and has 16 years to maturity, a face value of $1,000 and a coupon rate of 5.8%. The bond's current price is $1,353.74. It is callable starting 10 years from now (years to call) at a call price of $1,124. 1.What is the bond's (annualized) yield to maturity? 2.What is the bond's (annualized) yield to call? 3. If you buy the bond today and hold it as long as possible, which rate...
Suppose there is a 2-year bond that pays an interest payment of $70 at the end...
Suppose there is a 2-year bond that pays an interest payment of $70 at the end of the first year and then pays another interest payment of $70 plus the $1,000 face value at the end of year two when it matures. The interest payment is known as a “coupon” payment, and therefore, bonds that pay interest are known as “coupon bonds”. Since this bond pays its interest payments once per year, it is known as a 7% annual coupon...
You purchase a 3 year bond for $980 (FV=$1000). The bond pays a 5% annual coupon....
You purchase a 3 year bond for $980 (FV=$1000). The bond pays a 5% annual coupon. What is the current yield of the bond? If the YTM remains constant, what will be your total return over the next year? What will be your capital gains/losses on the bond?
Question 1 a. A bond that pays interest semiannually is selling for 100% of its $1,000...
Question 1 a. A bond that pays interest semiannually is selling for 100% of its $1,000 par value. The bond has a 4% coupon rate and paid a coupon 1 month ago. What is this bond's invoice price? b.A bond has a $1,000 par value,10 years to maturity, a 4.5% coupon, and currently sells for $1,037. The bond pays coupons semiannually. The bond is callable 3 years from today with a call price of $1,020. What is this bond's yield...
 ​Fitzgerald's 25​-year bonds pay 8 percent interest annually on a $1,000 par value. If the bonds...
 ​Fitzgerald's 25​-year bonds pay 8 percent interest annually on a $1,000 par value. If the bonds sell at $935​, what is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? 1.The​ bond's yield to maturity if the bond pays interest annually is? 2. The​ bond's yield to maturity if the bond paid interest semiannually would be?
​Fitzgerald's 35​-year bonds pay 11 percent interest annually on a ​$1,000 par value. If the bonds...
​Fitzgerald's 35​-year bonds pay 11 percent interest annually on a ​$1,000 par value. If the bonds sell at $875​, what is the​bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? Explain the difference. a. The​ bond's yield to maturity if the bond pays interest annually is __​%. The bonds yield to maturity if the bond pays interest semiannaually is __
??(Yield to? maturity)?The market price is $ 700 for a 10 year bond ($1,000 par value)...
??(Yield to? maturity)?The market price is $ 700 for a 10 year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis ?(4.5 percent semiannually). What is the? bond's yield to? maturity? The? bond's yield to maturity is___% (Round to two decimal places.)
The market price is ​$775 for a 20​-year bond ​($1,000 par​ value) that pays 11 percent...
The market price is ​$775 for a 20​-year bond ​($1,000 par​ value) that pays 11 percent annual​ interest, but makes interest payments on a semiannual basis ​(5.5 percent​ semiannually). What is the​ bond's yield to​ maturity? A. The​ bond's yield to maturity is (?) %.
A.Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of...
A.Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 7.7% and exactly 6 years to maturity. What is the bond's current value? B.Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 5%, a promised yield to maturity of 5.7% and exactly 11 years to maturity. The present value of the coupon stream represents ______ of the total bond's value....
You just purchased a $1,000 par value, 10-year, 9.3 percent annual coupon bond that pays interest...
You just purchased a $1,000 par value, 10-year, 9.3 percent annual coupon bond that pays interest on a semiannual basis. The bond sells for $974. What is the bond’s nominal yield to maturity (enter answer as a percentage)?