Question

Based on the following info for a bond- what is the bond's coupon rate? Years to...

Based on the following info for a bond- what is the bond's coupon rate?

Years to Maturity- 25

Par Value- 1,000

Interest Rate 0.1

Current Price 1,200

Homework Answers

Answer #1

Given information

1) par value or face value = 1,000

2) current market price or subscription price = 1,200

3) interest rate = 0.1

coupon rate = coupon amount×100/par value

this problem had 2 alternative methods.

both methods are correct.

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
An investor is considering purchasing a bond with a 4.25 percent coupon interest​ rate, a par...
An investor is considering purchasing a bond with a 4.25 percent coupon interest​ rate, a par value of $1,000 and a market price of $653.97. The bond will mature in nine years. Based on this​ information, answer the following​ questions: a. What is the​ bond's current​ yield? b. What is the​ bond's approximate yield to​ maturity? c. What is the​ bond's yield to maturity using a financial​ calculator?
An investor is considering purchasing a bond with a 4.28 percent coupon interest? rate, a par...
An investor is considering purchasing a bond with a 4.28 percent coupon interest? rate, a par value of? $1,000?, and a market price of? $673.71 The bond will mature in nine years. Based on this? information, answer the following? questions: a. What is the? bond's current? yield? b. What is the? bond's approximate yield to? maturity? c. What is the? bond's yield to maturity using a financial? calculator? ?Note: Assume coupon payments are paid annually
A.Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of...
A.Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 7.7% and exactly 6 years to maturity. What is the bond's current value? B.Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 5%, a promised yield to maturity of 5.7% and exactly 11 years to maturity. The present value of the coupon stream represents ______ of the total bond's value....
​Zero-coupon bond. Addison Company will issue a zero-coupon bond this coming month. The​ bond's projected yield...
​Zero-coupon bond. Addison Company will issue a zero-coupon bond this coming month. The​ bond's projected yield is 8%. If the par value is ​$1,000​, what is the​ bond's price using a semiannual convention if a. the maturity is 20 years? b. the maturity is 35 ​years? c. the maturity is 60 ​years? d. the maturity is 80 ​years?
A bond's current dollar price is $1,000, the same as its par value. The bond has...
A bond's current dollar price is $1,000, the same as its par value. The bond has 20 years to maturity and a 6% coupon rate. The bond makes semiannual coupon payments. What is the bond’s yield to maturity?
If a bond's yield to maturity exceeds its coupon rate, the bond's: d. current yield is...
If a bond's yield to maturity exceeds its coupon rate, the bond's: d. current yield is equal to the capital gain on the maturity of the bond. b. price must be less than its par value. a. current yield is equal to the coupon rate. c. maturity value is more than its face value.
A bond with 16 years to maturity and a semiannual coupon rate of 5.05 percent has...
A bond with 16 years to maturity and a semiannual coupon rate of 5.05 percent has a current yield of 5.37 percent. The bond's par value is $2,000. What is the bond's price?
A) As with most bonds, consider a bond with a face value of $1,000. The bond's...
A) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 22 years, the coupon rate is 12% paid annually, and the discount rate is 12%. What is this bond's coupon payment? B) A bond offers a coupon rate of 14%, paid semiannually, and has a maturity of 6 years. Face value is $1,000. If the current market yield is 5%, what should be the price of this bond?
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10 2. (10 points) Compute the following yields: a) the yield to maturity for Bond 1, above, if the current bond price is $875. b) the yield to call for Bond 1 if its current price is $1050 and it is callable in 4 years at a value of par plus one year’s coupon interest.
1. A 9% semiannual coupon bond matures in 6 years. The bond has a face value...
1. A 9% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 8.7482%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond's price: YTM: 2. Harrimon Industries bonds have 4 years...