Question

Luxury properties offers bond with a coupon rate of 9.5% paid semiannually. The yield to maturity is 11.2% and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?

Solve using excel

Answer #1

Coupon Rate |
9.50% | ||

YTM |
11.20% | ||

Maturity |
11 | ||

Payment |
0.5 | (Semi-Annually) | |

Face Value |
1000 | ||

Time |
Coupon Payment |
Final Payment |
Present Value |

0.5 | 47.5 | 45.04 | |

1 | 47.5 | 42.72 | |

1.5 | 47.5 | 40.51 | |

2 | 47.5 | 38.41 | |

2.5 | 47.5 | 36.43 | |

3 | 47.5 | 34.54 | |

3.5 | 47.5 | 32.76 | |

4 | 47.5 | 31.07 | |

4.5 | 47.5 | 29.46 | |

5 | 47.5 | 27.94 | |

5.5 | 47.5 | 26.49 | |

6 | 47.5 | 25.12 | |

6.5 | 47.5 | 23.82 | |

7 | 47.5 | 22.59 | |

7.5 | 47.5 | 21.42 | |

8 | 47.5 | 20.32 | |

8.5 | 47.5 | 19.27 | |

9 | 47.5 | 18.27 | |

9.5 | 47.5 | 17.33 | |

10 | 47.5 | 16.43 | |

10.5 | 47.5 | 15.58 | |

11 | 47.5 | 1000 | 325.84 |

Market Price | 911.36 |

Calculate the yield to maturity on the following bonds. a. A 9.5
percent coupon (paid semiannually) bond, with a $1,000 face value
and 20 years remaining to maturity. The bond is selling at $960.
(Do not round intermediate calculations. Round your answer to 3
decimal places. (e.g., 32.161)) Yield to maturity % per year b. An
10 percent coupon (paid quarterly) bond, with a $1,000 face value
and 10 years remaining to maturity. The bond is selling at $902.
(Do...

A bond offers a coupon rate of 10%, paid semiannually, and has a
maturity of 6 years. If the current market yield is 6%, what should
be the price of this bond?

Consider the bond described below:
Years to maturity = 15
Annual coupon rate = 9.5%, paid semiannually.
Face value = $1,000
If you require an 11.0% nominal yield to maturity, the maximum
price you should be willing to pay for the bond is closest to:
a.
$891.00
b.
$913.27
c.
$1,059.51

1.
A bond offers a coupon rate of 12%, paid annually, and has a
maturity of 19 years. If the current market yield is 13% (discount
rate), what should be the price of this bond?
2. A bond offers a coupon rate of 12%, paid semiannually, and
has a maturity of 6 years. If the current market yield is 8%, what
should be the price of this bond?

Calculate the yield to maturity on the following bonds:
A 9.4 percent coupon (paid semiannually) bond, with a $1,000
face value and 19 years remaining to maturity. The bond is selling
at $965.
An 8.4 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$901.
An 11.4 percent coupon (paid annually) bond, with a $1,000 face
value and 6 years remaining to maturity. The bond is selling at...

Gugenheim, Inc. offers a 7 percent coupon bond with annual
payments. The yield to maturity is 8.3 percent and the maturity
date is 7 years. What is the market price of a $1,000 face value
bond?
A $1000 face value bond has two years left to maturity, 5.6%
coupon rate with annual coupons, and is currently trading at $915.
What is the YTM on this bond?

Calculate the yield to maturity
on the following bonds.
a.
A 8.7 percent coupon (paid semiannually) bond, with a $1,000
face value and 11 years remaining to maturity. The bond is selling
at $920. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
year
b.
An 5.8 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$910. (Do...

Finance Group offers 7.25 percent coupon bonds with semiannual
payments and a yield to maturity of 7.05 percent compounded
semiannually. The bonds mature in 11 years. What is the market
price per bond if the face value is $1,000? show the answer in
detail.

Guggenheim, Inc. offers a 6.2% coupon bond with annual payments.
The yield to maturity is 5.85% and the maturity date is 9 years.
What is the market price of a $880 face value bond?

Calculate the yield to maturity
on the following bonds.
a.
A 8.2 percent coupon (paid semiannually) bond, with a $1,000
face value and 22 years remaining to maturity. The bond is selling
at $895. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
year
b.
An 5.3 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$915. (Do...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 12 minutes ago

asked 16 minutes ago

asked 18 minutes ago

asked 18 minutes ago

asked 19 minutes ago

asked 19 minutes ago

asked 22 minutes ago

asked 37 minutes ago

asked 41 minutes ago

asked 45 minutes ago

asked 45 minutes ago