Question

A 6.85 percent coupon bond with 18 years left to maturity is offered for sale at...

A 6.85 percent coupon bond with 18 years left to maturity is offered for sale at $1,025.30. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.) Yield to maturity %

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Since, the coupon payments are semi-annual, the rate is multiplied by 2 to get the yield to maturity.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A 6.25 percent coupon bond with 19 years left to maturity is offered for sale at...
A 6.25 percent coupon bond with 19 years left to maturity is offered for sale at $1,095.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
A 5.90 percent coupon bond with 18 years left to maturity can be called in four...
A 5.90 percent coupon bond with 18 years left to maturity can be called in four years. The call premium is one year of coupon payments. It is offered for sale at $1,105.50. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
A 4.25 percent coupon bond with eight years left to maturity is offered for sale at...
A 4.25 percent coupon bond with eight years left to maturity is offered for sale at $983.36. What yield to maturity is the bond offering? (Assume interest payments are paid semi-annually and par value is $1,000.)
A 9 percent coupon bond with 13 years left to maturity is offered for sale at...
A 9 percent coupon bond with 13 years left to maturity is offered for sale at $1,350. What yield to maturity is the bond offering? (Assume interest payments are paid semi-annually.) can anyone do it without calculator?
A coupon bond of 9.4 percent with 18 years left to maturity is priced to offer...
A coupon bond of 9.4 percent with 18 years left to maturity is priced to offer a 7.20 percent yield to maturity. You believe that in one year, the yield to maturity will be 8.0 percent. What would be the total return of the bond in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) What would be the total return of the bond in percentage? (Do not round intermediate calculations. Round your final answer...
A) Compute the price of a 6.4 percent coupon bond with 10 years left to maturity...
A) Compute the price of a 6.4 percent coupon bond with 10 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) B) Is this a discount or premium bond? discount bond premium bond
A 7.20 percent coupon bond with 23 years left to maturity is priced to offer a...
A 7.20 percent coupon bond with 23 years left to maturity is priced to offer a 6.1 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.7 percent. What would be the total return of the bond in dollars? (Assume interest payments are semiannual.) What would be the total return of the bond in percent? (Assume interest payments are semiannual.)
1. A 7.10 percent coupon bond with 15 years left to maturity is priced to offer...
1. A 7.10 percent coupon bond with 15 years left to maturity is priced to offer a yield to maturity of 7.9 percent. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 2. Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers...
A 6.30 percent coupon bond with 10 years left to maturity is priced to offer a...
A 6.30 percent coupon bond with 10 years left to maturity is priced to offer a yield to maturity of 7.6 percent. You believe that in one year, the yield to maturity will be 7.0 percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars?
A 8.30 percent coupon bond with 13 years left to maturity is priced to offer a...
A 8.30 percent coupon bond with 13 years left to maturity is priced to offer a yield to maturity of 9.0 percent. You believe that in one year, the yield to maturity will be 8.6 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT