Question

Bryceton, Inc. has bonds on the market with 12 years to maturity, a yield-to-maturity of 9.8...

Bryceton, Inc. has bonds on the market with 12 years to maturity, a yield-to-maturity of 9.8 percent, and a current price of $1,157.70. The bonds make semiannual payments. What is the coupon rate?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

  

_______________________________

_______________________________

Value of Bond =

Where r is the discounting rate of a compounding period i.e. 0.098 / 2 = 0.049

And n is the no of Compounding periods 12 years * 2 = 24

Coupon ?%

1157.70 =

1157.70 = Coupon * 13.9338724524 + 317.24024983

Coupon = 1157.70 - 317.24024983 / 13.9338724524

Coupon = 60.3177439036

Coupon Rate = 60.3177439036 * 2 / 1000 = 12.06%

NOTE: Do upvote the answer, if this was helpful.

NOTE: Please don't downvote directly. In case of query, I will solve it in comment section in no time.

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
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 8.4...
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 8.4 percent, a par value of $1,000, and a current price of $1,326.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? 9.63% 19.33% 12.77% 12.87% 25.65% 9. Gugenheim, Inc., has a bond outstanding with a coupon rate of 7.2 percent and annual payments. The yield to maturity is 8.4 percent and the bond matures in 22 years. What is...
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 11.0...
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,246.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?
Hailey Inc. has 8% coupon bonds on the market with 10 years to maturity. The bonds...
Hailey Inc. has 8% coupon bonds on the market with 10 years to maturity. The bonds make annual coupon payments and sell for $1215. 1) what is the current yield on Haileys bonds? 2) what is the yield to maturity on Haileys bonds? 3) explain the difference between the current yield and the yield to maturity
1) VIX Strategy Inc. has 7.4% coupon bonds on the market with 13 years to maturity....
1) VIX Strategy Inc. has 7.4% coupon bonds on the market with 13 years to maturity. The bonds make semiannual payments and currently sell for 77.6% of par. a) What is the current yield on the bonds? b) What is the YTM? c) What is the Effective Annual Yield (EAR)?
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?
McConnell Corporation has bonds on the market with 11 years to maturity, a YTM of 7.4...
McConnell Corporation has bonds on the market with 11 years to maturity, a YTM of 7.4 percent, a par value of $1,000, and a current price of $1,196.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?
McConnell Corporation has bonds on the market with 17 years to maturity, a YTM of 11.0...
McConnell Corporation has bonds on the market with 17 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,156.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?
DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3...
DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $ 1,000, and a current price of $965. The bonds make semiannual payments. What must the coupon rate be on these bonds?
McConnell Corporation has bonds on the market with 11 years to maturity, a YTM of 6.4...
McConnell Corporation has bonds on the market with 11 years to maturity, a YTM of 6.4 percent, a par value of $1,000, and a current price of $1,156.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?
McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 11.0...
McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,266.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT