Question

Winston Enterprises has a 15-year bond issue outstanding that pays a 9% coupon. The bond is currently priced at $894.60 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

Answer #1

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Anna May’s Pizza Co. has a 15-year bond issue outstanding that
pays a 9% coupon. The bond is currently priced at $894.60 and has a
par value of $1,000. Interest is paid semiannually. What is the
yield to maturity?

Sarsgaard Enterprises has a 15-year bond issue outstanding that
pays a 9 percent coupon semi-annually. The bond is currently priced
at $911.65 and has a par value of $1,000. What is the
yield-to-maturity of the bond?
5.08%
10.13%
10.16%
10.40%
None of the above

Altro Sheet Metals has a bond issue outstanding with 15 years to
maturity, a coupon rate of 8.5% (paid semiannually), and a par
value of $1,000. The bonds are currently priced to yield 9.9% per
year. What is the market price of each bond?

Rocket Exterprices has a 20-year bond issue outstanding that
pays a 4% coupon. The bond is currently priced at $1,205.60 and has
par value of $1,000. The bond also pays coupons semiannually. You
just purchase ten of them as an investment.
1.) What is the yields to maturity of the bond you
hold?
2.) Five years fo by interest rates in the economy goes
up by 3% and Rocket Enterprises' bonds YTM also rises by 3%.
Unfortunately, you desperately need...

1. Omega Enterprises has an 8% coupon bond with exactly 16 years
to maturity. Interest is paid semi-annually. The bond is priced at
$1,125 per $1,000 of face value. a.) What is the yield to maturity
on this bond? b.)An investor purchased the bond at $1,125 and sold
it 5 years later at a price of $1,023. What was the investor’s
return. (Hint: calculate the YTM as in a) above but use the sale
price as the future value.
2....

A 15-year bond is currently priced at $900 and pays a
semi-annual coupon payment of 8%. The par value is $1,000. What is
the yield to maturity?

Boeing has a bond outstanding with 15 years to maturity, a
$1,000 par value, a coupon rate of 6.8%, with coupons paid
semiannually, and a price of 98.16 (percent of par).
If the company wants to issue a new bond with the same
maturity at par, what coupon rate should it choose?

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....

Consider a $1,000 par value bond with a 6% coupon rate paid
semiannually, and has 9 years to maturity. What is the price of the
bond if it is priced to yield 7%?

Milner's Tools has a 9-year, 7 percent annual coupon bond
outstanding with a $1,000 par value. Carter's Tools has a 10-year,
6 percent annual coupon bond with a $1,000 par value. Both bonds
currently have a yield to maturity of 6.5 percent. If the market
yield increases to 6.75 percent,
(1) What is the percentage change in Milner’s bond value?
(2) What is the percentage change in Carter’s bond value?
(3) Whose bond has higher interest rate risk? Why?

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