Question

A $5000 annual coupon bond with an 5.3% coupon rate and a 18-year maturity at par...

A $5000 annual coupon bond with an 5.3% coupon rate and a 18-year maturity at par value. The current rate on 18-year US treasuries is 3%.  Two years later, you look in the newspaper, and find that the yield on comparable debt is 7.152%, how much is the bond currently worth?

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
Suppose that you purchased a A rated $5000 annual coupon bond with an 6.9% coupon rate...
Suppose that you purchased a A rated $5000 annual coupon bond with an 6.9% coupon rate and a 13-year maturity at par value. The current rate on 13-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 9.345%, how much is the bond currently worth?
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 8.1% coupon rate...
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 8.1% coupon rate and a 9-year maturity at par value. The current rate on 9-year US treasuries is 3%.  Two years later, you look in the newspaper, and find that the yield on comparable debt is 6.892%, how much is the bond currently worth?
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 7.8% coupon rate...
Suppose that you purchased a Baa rated $1000 annual coupon bond with an 7.8% coupon rate and a 19-year maturity at par value. The current rate on 19-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 7.080%, how much is the bond currently worth?
A $5,000 annual coupon bond with an 5.8% coupon rate and a 7-year maturity at par...
A $5,000 annual coupon bond with an 5.8% coupon rate and a 7-year maturity at par value. The current rate on 7-year US treasuries is 3%.  Two years later, you sell the bond, and for a yield of 7.328%, what was your capital gain (+) or capital loss (-) in dollars and cents?
18. Compute the yield to maturity of a $2,500 par value bond with a coupon rate...
18. Compute the yield to maturity of a $2,500 par value bond with a coupon rate of 7.8% (quarterly payments - that is, four times per year) that matures in years. The bond is currently selling for $3,265 19. What is the yield to maturity of a $ par value bond with a coupon rate of 9.5% (semi-annual coupon payments) that matures in 28 years assuming the bond is currently selling for $838.137 par value 1000
Suppose that you purchased a A rated $5,000 annual coupon bond with an 6.7% coupon rate...
Suppose that you purchased a A rated $5,000 annual coupon bond with an 6.7% coupon rate and a 11-year maturity at par value. The current rate on 11-year US treasuries is 3%. Two years later, you sell the bond, and for a yield of 7.922%, what was your capital gain (+) or capital loss (-) in dollars and cents? (make your answer positive for a gain, negative for a loss)
Suppose that you purchased a A rated $5,000 annual coupon bond with an 6.1% coupon rate...
Suppose that you purchased a A rated $5,000 annual coupon bond with an 6.1% coupon rate and a 8-year maturity at par value. The current rate on 8-year US treasuries is 3%. Two years later, you sell the bond, and for a yield of 4.787%, what was your capital gain (+) or capital loss (-) in dollars and cents? (make your answer positive for a gain, negative for a loss)
A 10-year corporate bond has an annual coupon payment of 5.3%. The bond is currently selling...
A 10-year corporate bond has an annual coupon payment of 5.3%. The bond is currently selling at par ($1,000). Which of the following statement is not correct? Why? The bond’s capital gain yield is 5.3%. The bond’s yield to maturity is 5.3%. The bond’s current yield is 5.3%. If the bond’s yield to maturity remains constant, the bond’s price will remain at par.
A $ 5000 bond with a coupon rate of 5.3​% paid semiannually has two years to...
A $ 5000 bond with a coupon rate of 5.3​% paid semiannually has two years to maturity and a yield to maturity of 8​%. If interest rates rise and the yield to maturity increases to 8.3​%, what will happen to the price of the​ bond?
What is the coupon rate for a par value bond with ten years until maturity, annual...
What is the coupon rate for a par value bond with ten years until maturity, annual compounding, a current price of $1,280.95, and a yield to maturity of 7%?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT