Question

43.Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond...

43.Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond if the bond sells for $1,218 currently? We assume that interest is paid on this bond annually.

2.90%

5.79%

6.64%

6.86%

Using the information from Question 43, calculate the bond’s current yield.

6.20%

6.57%

6.80%

7.18%

Using the information from Question 43 and 44, calculate the bond’s capital gain yield.

-0.78%

0.78%

6.22%

6.57%
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

1. 5.79%

2. 6.57%

3. -0.78%

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
Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond...
Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond if the bond sells for $1,218 currently? We assume that interest is paid on this bond annually. 2.90% 5.79% 6.64% 6.86% Using the information from above, calculate the bond’s current yield. 6.20% 6.57% 6.80% 7.18% Using the information from Question 43 and 44, calculate the bond’s capital gain yield. -0.78% 0.78% 6.22% 6.57%
36. Find the yield to maturity (YTM) for a 10-year, 10% annual coupon rate, $1,000 par...
36. Find the yield to maturity (YTM) for a 10-year, 10% annual coupon rate, $1,000 par value bond if the bond sells for $1,218 currently? We assume that interest is paid on this bond annually. 5.11% 6.91% 7.64% 8.86% 5.11% 6.91% 7.64% 8.86% Using the information from Question 36, calculate the bond’s current yield. 6.20% 6.57% 6.80% 8.21% Using the information from Question 36 and 37, calculate the bond’s capital gain yield. -0.35% -1.27% 0.35% 1.27%
1. Analyze the 20-year, 8% coupon rate (Semi-annual payment), $1,000 par value bond. The bond currently...
1. Analyze the 20-year, 8% coupon rate (Semi-annual payment), $1,000 par value bond. The bond currently sells for $1,218. What's the bond's yield to maturity? A. 5.06% B. 5.68% C. 5.38% D. 6.10% 2. Analyze the 20-year, 8% coupon rate (Semi-annual payment), $1,000 par value bond. The bond currently sells for $1,218. What's the bond's current yield, and capital gain yield? (Please show your work) A. 6.57%, -0.47% B. 6.07%, -0.69% C. 6.57%, -0.47% D. 6.07%, 0.69%
A 10-year corporate bond has an annual coupon of 9% and a par value of $1,000....
A 10-year corporate bond has an annual coupon of 9% and a par value of $1,000. The bond is currently selling at a premium of 20% to par ($1,200). Which of the following statements is more likely to be CORRECT? a.    The bond’s yield to maturity is 9%. b.   The bond’s current yield is 9%. c.    IF the bond’s yield to maturity remains constant over the next year, an investor owning the bond will earn a capital GAIN of 11%...
A 15-year, semiannual coupon bond sells for $985.72. The bond has a par value of $1,000...
A 15-year, semiannual coupon bond sells for $985.72. The bond has a par value of $1,000 and a yield to maturity of 6.57 percent. What is the bond's coupon rate?
A bond has a $1,000 par value, 16 years to maturity, and pays a coupon of...
A bond has a $1,000 par value, 16 years to maturity, and pays a coupon of 6.0% per year, annually. The bond can be called in seven years at $1,150. If the bond’s yield to maturity is 6.39% per year, what is its yield to call? Question 2 options: A) 8.68% B) 8.87% C) 8.11% D) 8.41% E) 7.87%
bond has a $1,000 par value, 14 years to maturity, and pays a coupon of 8.25%...
bond has a $1,000 par value, 14 years to maturity, and pays a coupon of 8.25% per year, annually. The bond can be called in seven years at $1,045. If the bond’s current yield is 8.52% per year, what is its annual yield to maturity? Question 7 options: A) 8.38% B) 8.42% C) 8.65% D) 8.58% E) 8.49%
1.A 6% annual coupon bond (par=$1,000) with 15 years to maturity is selling for $1,050. a.What...
1.A 6% annual coupon bond (par=$1,000) with 15 years to maturity is selling for $1,050. a.What is the bond’s Yield-to-Maturity (YTM)? b.What is the bond’s current yield (CY)? c.What is the bond’s capital gains rate or yield (CGY)?
Par value Coupon interest rate Years to maturity Current value $500 8% 20 $320 Yield to...
Par value Coupon interest rate Years to maturity Current value $500 8% 20 $320 Yield to maturity  The bond shown in the following table pays interest annually a. Calculate the yield to maturity ​ (YTM​) for the bond. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a​ bond? Explain.
A 10-year bond with a 8% annual coupon has a yield to maturity of 9%. Which...
A 10-year bond with a 8% annual coupon has a yield to maturity of 9%. Which of the following statements is CORRECT? a. The bond’s current yield is greater than 9%. b. If the yield to maturity remains constant, the bond’s price one year from now will be higher than its current price. c. The bond is selling above its par value. d. If the yield to maturity remains constant, the bond’s price one year from now will be lower...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT