Question

Calculate the yield-to-maturity of a zero coupon bond that is trading at $994.00, matures in exactly 2 months and has a face value of $1,000.

Answer #1

Consider a zero-coupon bond that matures in 4 years. If it is
currently trading at a 22% discount to its face value, what is its
yield to maturity? Circle your final answer.

A zero coupon bond matures in 7 years and is trading at a market
yield of 2.75%. What is the Macaulay’s duration of the bond.

Company A offers a zero coupon bond with a yield to maturity of
25 percent. The bond matures in 1 years and has a face value of
$1,000. What is this bond worth today? Assume annual
compounding.
A) $1000
B) $800
C) $1250
D) $1562.5
E) $640

1. A 9-year zero coupon bond has a yield to maturity of
11.8 percent, and a par value of $1,000. What is the
price of the bond?
2. A 7-year bond has a 8 percent coupon rate with the interest
paid in semi annual payments. The yield to maturity of
the bond is 2.3 percent, and a face value of
$1,000. What is the price of the bond?
3. A 12-year bond has a 9 percent annual coupon, a yield to
maturity of...

A "zero coupon bond" (or just "zero") is a bond, that does not
pay any interest, it just pays the face value when it matures. Of
course nobody would purchase a bond without interest, that's why
zero coupon bonds are sold at a discount.
Suppose you are given the following information about the
current prices of zero coupon bonds:
bond:
price
1-year zero, face value $1,000
$909.09
2-year zero, face value $1,000
$826.45
3-year zero, face value $1,000
$718.65
I.e....

The yield to maturity of a one year zero coupon bond is 4 % p.
a. and the yield to maturity for a two year zero coupon bond is 5 %
p. a. If the par value of a 10% coupon bond (coupons paid annually)
is $1,000 and it matures in two years its price will be:"
"$1,093.89 "
"$1,078.92 "
"$1,068.23 "
"$1,055.12 "

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.

A zero-coupon bond has a yield to maturity of 8% and a par value
of $1,000. If the bond matures in 8 years, at what price should the
bond sell today?
a) $501.90
b) $555.28
c) $573.88
d) $540.30

1. Omega Enterprises has an 8% coupon bond with exactly 16 years
to maturity. Interest is paid semi-annually. The bond is priced at
$1,125 per $1,000 of face value. a.) What is the yield to maturity
on this bond? b.)An investor purchased the bond at $1,125 and sold
it 5 years later at a price of $1,023. What was the investor’s
return. (Hint: calculate the YTM as in a) above but use the sale
price as the future value.
2....

yield to maturity- you just purchased a bond which matures in 8
years. the bond has a face value if $1,000 and a 6.25% annual
coupon rate. the bond has a current yueld of 7.29%. what is the
YTM

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