Question

What is the time to maturity of a 5.0% coupon bond if its YTM is 8.0%?...

What is the time to maturity of a 5.0% coupon bond if its YTM is 8.0%? The bond's price is $843.69 and coupons are paid annually.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A bond sells for $1215 in the market and has 12 years until maturity. The bond's...
A bond sells for $1215 in the market and has 12 years until maturity. The bond's YTM = 9.19% and pays its coupons annually. What is the bond's annual coupon rate?
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and...
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond B has 10 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond C has 10 years to maturity, 4% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Which comparison is TRUE? A. Bond A has higher price sensitivity than Bond B B. Bond C has higher price sensitivity than Bond A C. Bond...
Suppose you have a 3.25% coupon bond with a ytm of 1.50 percent and a term-to-maturity...
Suppose you have a 3.25% coupon bond with a ytm of 1.50 percent and a term-to-maturity of 3 years. The bond pays its coupon ANNUALLY(once per year) and has a face value of $1,000. What is this bond’s price? What is its duration?  
The term structure for zero-coupon bonds is currently: Maturity (Years) YTM(%) 1 5.0 % 2 6.0...
The term structure for zero-coupon bonds is currently: Maturity (Years) YTM(%) 1 5.0 % 2 6.0 3 7.0 Next year at this time, you expect it to be: Maturity (Years) YTM(%) 1 6.0 % 2 7.0 3 8.0 a. What do you expect the rate of return to be over the coming year on a 3-year zero-coupon bond? (Round your answer to 1 decimal place.) b-1. Under the expectations theory, what yields to maturity does the market expect to observe...
The yield-to-maturity (YTM) on one-year bond with zero coupon and face value $ 1000 is 5...
The yield-to-maturity (YTM) on one-year bond with zero coupon and face value $ 1000 is 5 %. The YTM on two-year bond with 5 % coupon paid annually and face value $ 1000 is 6 %. (i) What are the current prices of these bonds? (ii) Find Macaulay durations of these bonds. Consider a third bond which is a zero coupon two-year bond with face value $ 1000. (iii) What must be the price of the third bond so that...
Assume that you have Corporate bond with $1,000.0 par value; 5.0% Cuopon rate; 20 years to...
Assume that you have Corporate bond with $1,000.0 par value; 5.0% Cuopon rate; 20 years to maturity; YTM = 6.0%. Interest is paid annually. 1 - What is the value (price) of this bond. 2 - What is the premium or discount of this bond. (Premium is when the bond's price is more than $1,000.0 & discount is when the bond's price is less than $1,000.0).
The yield to maturity of a one year zero coupon bond is 4 % p. a....
The yield to maturity of a one year zero coupon bond is 4 % p. a. and the yield to maturity for a two year zero coupon bond is 5 % p. a. If the par value of a 10% coupon bond (coupons paid annually) is $1,000 and it matures in two years its price will be:" "$1,093.89 " "$1,078.92 " "$1,068.23 " "$1,055.12 "
A coupon bond has 10-years to maturity and a YTM of 8%. If the YTM instantaneously...
A coupon bond has 10-years to maturity and a YTM of 8%. If the YTM instantaneously increases to 9%, what happens to the bond’s price and duration? The price decreases and the duration increases. The price increases and the duration decreases. The price decreases and the duration decreases. The price decreases and the duration stays the same 3- Which of the following would not be expected to cause yield spreads to widen? The firm is involved in an accounting scandal....
Assume you pay $1,343 for a Tesla bond (14 year maturity, 6.5% coupon bond, paid semi-annually,...
Assume you pay $1,343 for a Tesla bond (14 year maturity, 6.5% coupon bond, paid semi-annually, with a YTM of 3.4%, $1,000 principal). If Tesla is downgraded and the default risk premium of Tesla increases by 5.0%, all-else-equal, what is the new bond price of Telsa? Group of answer choices $1,200 $845 $950 $935
Bond P is a premium bond with a coupon of 5 percent , a YTM of...
Bond P is a premium bond with a coupon of 5 percent , a YTM of 6.64 percent, and 16 years to maturity. Bond D is a discount bond with a coupon of 5 percent, a YTM of 9.56 percent, and also 16 years to maturity. If interest rates remain unchanged, what is the difference in the prices of these bonds 5 year from now? (i.e., Price of Bond P - Price of Bond D) Note: Corporate bonds pay coupons...