Question

Par value Coupon Rate Years to Maturity Yield to Maturity Price Frequency 1000 - 15 6%...

Par value Coupon Rate Years to Maturity Yield to Maturity Price Frequency
1000 - 15 6% 1197.51 Monthly

Coupon rates. What are the coupon rates for the following​ bonds, ​Hint: Make sure to round all intermediate calculations to at least six decimal places.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

n = 15 * 12 = 180

r = 6%/12 = 0.005

Annual coupon = 6.6667016215 * 12 = 80.000419458

Coupon rate = Annual coupon/Face value

Coupon rate = 80.000419458/1,000

Coupon rate = 0.08000041946

Coupon rate = 8.000041946%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity if the required return on these bonds is 3%? Consider a bond with par value of $1000, 25 years left to maturity, and a coupon rate of 6.4% paid annually. If the yield to maturity on these bonds is 7.5%, what is the current bond price? One year ago, your firm issued 14-year bonds with a coupon rate of 6.9%. The bonds make semiannual...
Absalom Motors' 15% coupon rate, semiannual payment, $1,000 par value bonds that mature in 25 years...
Absalom Motors' 15% coupon rate, semiannual payment, $1,000 par value bonds that mature in 25 years are callable 4 years from now at a price of $750. The bonds sell at a price of $1,300, and the yield curve is flat. Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds? Do not round intermediate calculations. Round your answer to two decimal...
Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 10 years,...
Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 10 years, are callable 6 years from today at $1,050. They sell at a price of $1,306.57, and the yield curve is flat. Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life? Round your answer to two decimal places. If Lourdes plans to raise additional capital and wants to use debt financing, what...
1)What is the price of a bond if the par value is $1000, the coupon rate...
1)What is the price of a bond if the par value is $1000, the coupon rate is 5%(paid semi-annually), has 20 years to maturity and the market rate (yield to maturity per annum) is 8%? A. $683.11 B. $703.11 C. $813.11 D. $923.11 E. 1063.11 2) What is the coupon rate of a bond with a par value of $1000, it is currently selling for $800, has 15 years to maturity and the market rate (yield to maturity) is 10%...
YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 7 years to...
YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. What is its yield to maturity (YTM)? Round your answer to two decimal places.    % Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate...
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.6% with semiannual payments of $38, and a par value of $1,000. The price of each bond in the issue is $1,220.00. The bond issue is callable in 5 years at a call price of $1,076. What is the bond's current yield? Round your answer to two decimal places. Do not round intermediate calculations. % What is the bond's nominal annual yield to...
1. West Corp. issued 15-year bonds two years ago at a coupon rate of 8.2 percent....
1. West Corp. issued 15-year bonds two years ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM = % 2. Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments....
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10 years to maturity. These bonds pay a coupon of $45 every six months. Current market conditions are such that the bond sells for $938. Calculate the yield to maturity on the issue. Duration A newly issued 5-year Altec Corp. bond has a price of $1,095.99, a par value of $1,000, and pays annual interest at a 12% coupon rate. Find the duration of the...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10 2. (10 points) Compute the following yields: a) the yield to maturity for Bond 1, above, if the current bond price is $875. b) the yield to call for Bond 1 if its current price is $1050 and it is callable in 4 years at a value of par plus one year’s coupon interest.
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) Bond equivalent yield to maturity % Effective annual yield to maturity %
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT