Question

If a five-year, $1,000 bond with a 5% coupon rate is trading at a YTM of...

If a five-year, $1,000 bond with a 5% coupon rate is trading at a YTM of 5%, it is trading _____ A. cannot be determined B. at par C. at a premium D. at a discount

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
If a five-year, $1,000 bond with a 5% coupon rate is trading at a YTM of...
If a five-year, $1,000 bond with a 5% coupon rate is trading at a YTM of 5%, it is trading _____ A. at par B. at a discount C. cannot be determined D. at a premium
Suppose a​ seven-year, $1,000 bond with a 7.6% coupon rate and semiannual coupons is trading with...
Suppose a​ seven-year, $1,000 bond with a 7.6% coupon rate and semiannual coupons is trading with a yield to maturity of 6.54%. a. Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain. b. If the yield to maturity of the bond rises to 7.33% (APR with semiannual​ compounding), what price will the bond trade​ for? a. Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain.  ​(Select the best...
Suppose a​ seven-year, $1,000 bond with a 9.43%coupon rate and semiannual coupons is trading with a...
Suppose a​ seven-year, $1,000 bond with a 9.43%coupon rate and semiannual coupons is trading with a yield to maturity of 6.87%. a. Is this bond currently trading at a​ discount, at​ par, or at a​ premuim? Explain. The bond is currently trading...  ​(Select the best choice​ below.) A. ... at a premium because the yield to maturity is greater than the coupon rate. B... at par because the coupon rate is equal to the yield to maturity C... at a...
a 20 year, 8% coupon rate, $1,000 par bond that pays interest semi-annually bought five years...
a 20 year, 8% coupon rate, $1,000 par bond that pays interest semi-annually bought five years ago for $850. this bond is currently sold for 950. what is the yield on this bond? a.12.23% b.11.75% c.12.13% d.11.23% an increase in interest rates will lead to an increase in the value of outstanding bonds. a. true b. false a bond will sell ____ when coupon rate is less than yield to maturity, ______ when coupon rate exceeds yield to maturity, and...
Li’s company has just issued a ten-year bond with a coupon rate of 5% and YTM...
Li’s company has just issued a ten-year bond with a coupon rate of 5% and YTM of 8%. The bond is callable at the end of the fifth year and the call premium is $50. If the par value of the bond is $1,000 and the coupon is paid every six month, calculate yield to call. a. 5.0% b. 8.0% c. 5.6% d. 11.2%
8) Suppose a​ seven-year, $1,000 bond with a 10.96% coupon rate and semiannual coupons is trading...
8) Suppose a​ seven-year, $1,000 bond with a 10.96% coupon rate and semiannual coupons is trading with a yield to maturity of 8.00%. a. Is this bond currently trading at a​ discount, at​ par, or at a​ premuim? Explain. b. If the yield to maturity of the bond rises to 8.73% ​(APR with semiannual​ compounding), at what price will the bond​ trade? a. Is this bond currently trading at a​ discount, at​ par, or at a​ premuim? Explain. The bond...
Q14- Suppose a​ seven-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading...
Q14- Suppose a​ seven-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading with a yield to maturity of 6.52%. a. Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain. b. If the yield to maturity of the bond rises to 7.32% ​(APR with semiannual​ compounding), what price will the bond trade​ for? If the yield to maturity of the bond rises to 7.32 % ​(APR with semiannual​ compounding), what price...
Considering a three year bond, with a 4% coupon, YTM of 5% and par of $1,000....
Considering a three year bond, with a 4% coupon, YTM of 5% and par of $1,000. Calculate the Macauley and Modified duration.
7) The prices of several bonds with face values of $1,000 are summarized in the following​...
7) The prices of several bonds with face values of $1,000 are summarized in the following​ table: Bond A B C D Price $905.72 $057.48 $1,179.66​ $1,000.00 For each​ bond, provide an answer for whether it trades at a​ discount, at​ par, or at a premium. Bond A trades at​ (a).----------------? Is it Discount, Par Or Premium?    (Select from the​ drop-down menu.) 5) Suppose a 10​-year, $1,000 bond with a 12% coupon rate and semiannual coupons are trading for a...
Bond P is a premium bond with a coupon of 5 percent , a YTM of...
Bond P is a premium bond with a coupon of 5 percent , a YTM of 6.64 percent, and 16 years to maturity. Bond D is a discount bond with a coupon of 5 percent, a YTM of 9.56 percent, and also 16 years to maturity. If interest rates remain unchanged, what is the difference in the prices of these bonds 5 year from now? (Bond P - Bond D). Note: Corporate bonds pay coupons twice a year.