Question

A
bond that matures in 6 years sells for $950. The bond has a face
value of $1,000 and a 5.5% annual coupon. What is the bond’s yield
to maturity, YTM?

Answer #1

Anser

**Bond's yield to maturity (TYM) = 6.50 % ( ROUNDED OFF TO
2 DECIMALS)**

An 8% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 8.3977%. What are the
bond's price and YTM? (Hint: Refer to Footnote 6 for the definition
of the current yield and to Table 7.1) Do not round intermediate
calculations. Round your answer for the bond's price to the
nearest cent and for YTM to two decimal places.
Bond’s price: $ =
YTM: =

A bond has a coupon rate of 3%, pays interest semiannually,
sells for $950, and matures in 3 years. Face value=1000
a) Calculate the approximate YTM (yield to maturity).
b) Calculate the YTM, using a financial calculator.
c) What is the difference between the approximate YTM and the
Real YTM in (b)?

An 8% semiannual coupon bond matures in 5 years. The bond has a
face value of $1,000 and a current yield of 8.21%. What are the
bond’s price and YTM?
calculate using a financial calculator

A 7% semiannual coupon bond matures in 6 years. The bond has a
face value of $1,000 and a current yield of 7.7242%. What are the
bond's price and YTM?

An semi-annual coupon bond with a $2,000 face value matures in 4
years. The bond currently sells for $1627.412 and has a 12 percent
yield to maturity. What is the bond’s nominal coupon rate?

A bond with a face value of $1,000 matures in 10 years and has
a
9.7 percent semiannual coupon. (That is, the bond
pays a $48.50 coupon every six months.)
The bond has a nominal yield to maturity of 10.3 percent, and
it can be called in 2
years at a call price of $1,019.00. What is the
bond’s nominal yield to call?
15.71%
13.71%
16.71%
12.71%
14.71%

bond has $1,000 face value, 25 years to maturity, 3.6% annual
coupon rate. The bond’s current price is $948.92. Assuming the bond
pays coupons semiannually, what is the bond’s yield to maturity
(YTM)?

Bond Pricing
Suppose you have a 7% annual coupon bond selling for $950 with
three years until maturity and face value equal to $1,000.
Furthermore, suppose the interest rates in the next three years are
known (with certainty) to be r1 = 8%, r2 =
10.5% and r3 = 13%.
What is the bond’s current yield?
Calculate the bond’s yield to maturity.
What is the holding period return on your initial investment
after the bond matures?
What is the bond’s...

An
8%, semi-annual coupon bond has a $1,000 face value and matures in
8 years. What is the current yield on this bond if the yield to
maturity is 7.8%?

XYZ Corporation’s $1,000 par value bond sells for $940, matures
in four years, and has a 7% coupon rate paid semiannually. What is
the bond’s yield to maturity? Show full working.
(Answer 8.81%)

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