Question

Trincor Company bonds have a coupon rate of 10.25 percent, 14 years to maturity, and a...

Trincor Company bonds have a coupon rate of 10.25 percent, 14 years to maturity, and a current price of $1,225. What is the YTMThe current yield?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please find the below explanation and “ Don’t forget to give a like ! Thank you”

The YTM is 7.77% as calculated in image uploaded

Calculation of current yield:

current yield = Annual coupon payment / Bond price

annual coupon payment = 1000 * 10.25%

= $102.5

Bond price = $1225

current yield = $102.5 / $1225

= 0.0836 or 8.36%

The current yield is 8.36%

  

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) Johnson Motors’ bonds have 10 years remaining to maturity. Coupon interest is paid annually, the...
a) Johnson Motors’ bonds have 10 years remaining to maturity. Coupon interest is paid annually, the bonds have a $1,000 par value, and the coupon rate is 7 percent. The bonds have a yield to maturity of 8 percent. What is the current market price of these bonds? b) BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid semiannually and four years remaining until maturity. The par value of the bond is $1,000....
A company has 6 percent coupon bonds that have 9 years left to maturity. The bonds...
A company has 6 percent coupon bonds that have 9 years left to maturity. The bonds make annual payments to their holders. The YTM on these bonds is 9 percent. Calculate the current bond price. a. $779.14 b.$1,208.05 c. $820.14 d. $1,030.00 e. none of the above
Bond James Bond Corporation has 7 percent coupon bonds that have 14 years left to maturity....
Bond James Bond Corporation has 7 percent coupon bonds that have 14 years left to maturity. The bonds make annual payments to their holders. The YTM on these bonds is 10 percent. Calculate the current price for each of the Bond James Bond Corporation's bonds. A. $1,030.00 B. $1,266.36 C. $740.05 D. $779.00 E. $817.95
14. (Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon rate of...
14. (Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon rate of 5%, and annual payments has a yield to maturity of 4.3%. What will be the percentage change in the bond price if the yield changes instantaneously to 5%? (If your answer is, e.g., -1.123%, enter it as -1.123. If the sign of the price change is incorrect, no credit will be given.)
Workman Software has 4.1 percent coupon bonds on the market with 14 years to maturity. The...
Workman Software has 4.1 percent coupon bonds on the market with 14 years to maturity. The bonds make semiannual payments and currently sell for 91.57 percent of par. What is the YTM? What is the effective annual yield (i.e., EAY or EAR)?
1.Jackson Corporation's bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have...
1.Jackson Corporation's bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 8%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent. 2.Wilson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon...
ABSA Ltd bonds mature in 8 years and have a yield to maturity of 12.52 percent....
ABSA Ltd bonds mature in 8 years and have a yield to maturity of 12.52 percent. The par value of the bonds is R826. The bonds have a 9.8 percent coupon rate and pay interest on a quarterly basis. Required: 1. Find the current price of the bond. 2. Find the current yield of the bond. 3. Find the capital gains yield or loss.
1. Staind, Inc., has 7 percent coupon bonds on the market that have 5 years left...
1. Staind, Inc., has 7 percent coupon bonds on the market that have 5 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 11 percent, what is the current bond price? 2. Kiss the Sky Enterprises has bonds on the market making annual payments, with 6 years to maturity, and selling for $870. At this price, the bonds yield 11.0 percent. What must the coupon rate be on the bonds?
A few years ago, Spider Web, Inc. issued bonds with a 12.26 percent annual coupon rate,...
A few years ago, Spider Web, Inc. issued bonds with a 12.26 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $700, and will mature in 12 years. What would the annual yield to maturity be on the bond if you purchased the bond today? Flower Valley Company Bonds have a 13.91 percent coupon rate. Interest is paid semiannually. The bonds have a par value of $1000 and will mature in...
adsen Motors's bonds have 14 years remaining to maturity. Interest is paid annually, they have a...
adsen Motors's bonds have 14 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 12%, and the yield to maturity is 15%. What is the bond's current market price? Round your answer to the nearest cent. A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. What is its yield to maturity (YTM)? Round your answer to two decimal places....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT