Question

A 25-year maturity bond with face value of $1,000 makes annual
coupon payments and has a coupon rate of 8.1%. **(Do not
round intermediate calculations. Enter your answers as a percent
rounded to 3 decimal places.)**

**a.** What is the bond’s yield to maturity if the
bond is selling for $910?

**b.** What is the bond’s yield to maturity if the
bond is selling for $1,000?

**c.** What is the bond’s yield to maturity if the
bond is selling for $1,110?

Answer #1

A 20-year maturity bond with face value of $1,000 makes annual
coupon payments and has a coupon rate of 8.8%. (Do not round
intermediate calculations. Enter your answers as a percent rounded
to 3 decimal places.)
a. What is the bond’s yield to maturity if the bond is selling
for $980?
b. What is the bond’s yield to maturity if the bond is selling
for $1,000?
c. What is the bond’s yield to maturity if the bond is selling
for...

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...

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
%

A bond with a face value of $1,000 has 10 years until maturity,
carries a coupon rate of 8.8%, and sells for $1,120. Interest is
paid annually. (Assume a face value of $1,000 and annual coupon
payments.)
a. If the bond has a yield to maturity of 9.2%
1 year from now, what will its price be at that time? (Do
not round intermediate calculations.
Round your answer to nearest whole
number.)
b. What will be the rate of return...

A bond with a face value of $1,000 has 10 years until maturity,
carries a coupon rate of 7.4%, and sells for $1,160. Interest is
paid annually. (Assume a face value of $1,000 and annual coupon
payments.)
a. If the bond has a yield to maturity of 10.6% 1 year from now,
what will its price be at that time? (Do not round intermediate
calculations. Round your answer to nearest whole number.)
b. What will be the rate of return...

A bond with a face
value of $1,000 has 14 years until maturity, carries a coupon rate
of 8.6%, and sells for $1,104.
a.
What is the current yield on the bond? (Enter your answer
as a percent rounded to 2 decimal places.)
b.
What is the yield to maturity if interest is paid once a year?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 4 decimal places.)
c.
What is the yield to maturity...

A bond with a face value of $1,000 has 10 years until maturity,
carries a coupon rate of 7.9%, and sells for $1,110. Interest is
paid annually.
a. If the bond has a yield to maturity of 10.1%
1 year from now, what will its price be at that time? (Do
not round intermediate calculations. Round your
anser to nearest whole number.)
b. What will be the annual rate of return on
the bond? (Do not round intermediate calculations. Enter...

1) A 2-year maturity bond with face value of $1000 makes annual
coupon payments of $80. At a yield to maturity of 8 percent, the
bond must be selling for
2) A 2-year maturity bond with face value of $1000 makes annual
coupon payments of 8 percent per annum and is currently selling at
par. What return will you earn on the bond if you buy it today and
sell it at the end of the year when the yield...

a. Find the duration of a 6% coupon bond making annual coupon
payments if it has three years until maturity and has a yield to
maturity of 6%. Note: The face value of the bond is $1,000. (Do not
round intermediate calculations. Round your answers to 3 decimal
places.) b. What is the duration if the yield to maturity is 10%?
Note: The face value of the bond is $1,000. (Do not round
intermediate calculations. Round your answers to 3...

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)?

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