Question

Bond A has a face value of $1,000, makes semiannual coupon payments of $30 and will mature in 7 years. It currently sells for $949.63. Bond B is a corporate bond whose price is quoted at 109.98 this afternoon. It will mature in exactly 15 years. Bonds A and B are priced so that they each have the same yield. What is the YTM for these two bonds, and what is the coupon rate for Bond B?

Answer #1

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A 30-year maturity bond with face value of $1,000 makes
semiannual coupon payments and has a coupon rate of 9.2%.
(Do not round intermediate calculations. Enter your answers
as a percent rounded to 3 decimal places.)
a.
What is the yield to maturity if the bond is selling for
$960?
Yield to maturity
%
b.
What is the yield to maturity if the bond is selling for
$1,000?
Yield to maturity
%
c.
What is the yield to maturity if...

You are considering a corporate bond with 5% coupon bonds with
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mature in 8 years. What is the market price per bond if the face
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rate, and nine years to maturity. The bond makes coupon payments
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A corporation has a bond outstanding that makes semiannual
coupon interest payments. The coupon rate for the bond is 3.2
percent, the YTM (yield to maturity) is 4.5 percent, the par value
is $1,000 and the bond has 12 years to maturity. If interest rates
remain unchanged, what will the price of the bond be in 3
years?

ABC, Inc. offers a bond with a coupon of 9 percent with
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bonds mature in 14 years. What is the market price of a $1,000 face
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1. A 12-year semiannual bond with a coupon rate of 6% has a face
value of $1,000 and a YTM of 7%. The price of the bond is
A. 912.85. B. 914.25. C. 916.36. D. 919.71 E. 920.57
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$915. The YTM of the bond is
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A bond with a face value of $1,000 has annual coupon payments of
$100 and was issued 10 years ago. The bond currently sells for
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______________ must be 10%.
I. yield to maturity, II. coupon rate
a. Neither I not II
b. I only
c. I and II
d. II only

1. Assume Par value of $1,000 and semiannual coupon payments for
all:
A bond has a coupon rate of 8.6% and 11 years until maturity. If
the yield to maturity is 7.6%...
a) is the bond selling at a discount, premium or at face
value?
b) what is the price of the bond?
c) if market rates rose (such that bonds of equal credit risk
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A 30-year Treasury bond is issued with a face value of $1,000
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what happens to the bond’s coupon rate, current yield, and yield to
maturity?
all three increase
all three decrease.
the coupon rate increases, the current yield increases, and the
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the coupon rate stays the same, the current yield decreases,
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soca co. offers a 9 percent coupon bond with semiannual payments
and a yield to maturity of 7.50 percent. The bonds mature in 18
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