Question

A 1,000 dollar face value bond currently has a yield to maturity of 5.47 percent. The bond matures in 25 years and pays interest semiannually. The coupon rate is 8.25 percent. Whaat is the current price of bond

Answer #1

We know that,

Price of the bond = Present Value of all semi-annual coupons and face value discounted at semi-annual ytm

Face Value = 1000

Semi-annual YTM = 0.0547/2

Number of payments = 25 * 2 =50

Semi -annual amount = 0.0825*1000/2 = 41.25

Price of he bond = 41.25/(1+0.02735)^1 + 41.25/(1+0.02735)^2 +41.25/(1+0.02735)^3 + 41.25/(1+0.02735)^4 + 41.25/(1+0.02735)^5 + ......................... 41.25/(1+0.02735)^50 + 1000/(1+0.02735)^50

**Price of the bond = 1376.36 Answer**

A $1,000 face value
bond currently has a discount rate (yield-to-maturity) of 6.69
percent. The bond matures in three years and pays coupon annually.
The coupon rate is 7 percent. What type of bond it is?
Group of answer choices
Premium bond
Discount bond
Par bond
Zero-coupon bond

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)?

1. A $1,000 face value bond of Acme Inc. pays an annual coupon
and carries a coupon rate of 8.25%. It was a 30 year bond when
issued and it has 11 years remaining to maturity. If it currently
has a yield to maturity of 5.75%.
(a) What interest payments do bondholders receive each year?
(b) What is the current bond price?
(c) What is the bond price if the yield to maturity rises to
7.625%?

A 13-year, 6 percent coupon bond pays interest semiannually. The
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the price of this bond if the market yield to maturity rises to 5.7
percent from the current rate of 5.5 percent?

A 10-year, 7 percent coupon bond pays interest semiannually. The
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the price of this bond if the market yield to maturity rises to 6
percent from the current rate of 5.5 percent?

A bond with a face value of $1,000 has 14 years until maturity,
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What is the current yield on the bond?
What is the yield to maturity if interest is paid once a
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What is the yield to maturity if interest is paid
semiannually?

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bond pays an 8 percent semiannual coupon, and the bond has a 5.9
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CEPS Group has a 8.45 percent coupon bond outstanding that matures
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Your company issued a 10 percent coupon rate bond with the face
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What is the current price of this bond?

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