Question

The market price is $725 for a 14-year bond ($1000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?

Answer #1

Face Value of Bond = $1000

Semi-annual Coupon payment = $1000*5.5% = $55

No of coupon payments = 14 years*2 = 28

Current Price = $725

Calculating the Semi-annual Yield to Maturity(YTM) using the Excel "rate" Function:-

So, Semi-annual YTM = 7.9851%

Annual YTM = 7.9851%*2 = 15.9702%

So, **the bond's yield to maturity is
15.9702%**

*If you need any clarification, you can ask in
comments. *

**If you like my answer, then please up-vote as it
will be motivating *** *

The market price is $775 for a 20-year bond ($1,000 par
value) that pays 11 percent annual interest, but makes interest
payments on a semiannual basis (5.5 percent semiannually). What
is the bond's yield to maturity?
A. The bond's yield to maturity is (?) %.

The market price is $725 for a 12 -year bond ($1,000 par
value) that pays 12 percent annual interest, but makes interest
payments on a semiannual basis (6 percent semiannually). What is
the bond's yield to maturity?
The bond's yield to maturity is?.
(Round to two decimal places.)

(Yield to maturity) The market price is $775 for a 16-year
bond ($1,000 par value) that pays 11 percent annual interest,
but makes interest payments on a semiannual basis (5.5 percent
semiannually). What is the bond's yield to maturity?

The market price is $1,050 for a 9 -year bond ($1,000 par value)
that pays 9 percent annual interest, but makes interest payments on
a semiannual basis (4.5 percent semiannually). What is the bond's
yield to maturity?

??(Yield to?
maturity)?The market price is $ 700 for a 10 year
bond ($1,000 par value) that pays 9 percent annual interest, but
makes interest payments on a semiannual basis
?(4.5 percent semiannually). What is the? bond's yield to?
maturity?
The? bond's yield to maturity is___% (Round to two decimal
places.)

The market price is $975 for a 14-year bond ($1000 par
value) that pays 9 percent interest (4.5 percent semiannually).
What is the bond's expected rate of return? The bond's expected
annual rate of return is?

The market price is $543 for a 10-year bond ($1,000 par value)
that pays 8 % annual interest, but makes interest payments on a
semiannual basis (4% semiannually). What is the bond’s yield to
maturity?

(Related to Checkpoint 9.2) (Yield to maturity) The market
price is $750 for a 17-year bond ($1,000 par value) that pays
12 percent annual interest, but makes interest payments on a
semiannual basis (6 percent semiannually). What is the bond's
yield to maturity?

A bond's market price is $725. It has a $1 comma 000 par
value, will mature in 6 years, and has a coupon interest rate of 9
percent annual interest, but makes its interest payments
semiannually. What is the bond's yield to maturity? What happens
to the bond's yield to maturity if the bond matures in 12 years?
What if it matures in 3 years? a. The bond's yield to maturity
if it matures in 6 years is

14-year bond for Rusk Corporation has a market price of $875 and
a par value of $1,000. If the bond has an annual interest rate of
11 percent, but pays interest semiannually, what is the bond’s
yield to maturity?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 17 minutes ago

asked 17 minutes ago

asked 33 minutes ago

asked 48 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago