Question

In Excel with formulas-- A 10-year, 12 % semiannual coupon bond with a par value of...

In Excel with formulas--

A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called in 7 years, at a call price of $1,100. The bond sells for $1,500. (Assume the bond has just been issued).

a. What is the bond’s yields to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield in the first year?
d. What is the bond’s yield to call?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called...
A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called in 4 years, at a call price of $1,060. The bond sells for $1,300. (Assume the bond has just been issued). a. What is the bond’s yields to maturity? (15 points) b. What is the bond’s current yield? (15 points) c. What is the bond’s capital gain or loss yield in the first year in percent? (15 points) d. What is the bond’s yield...
A 14-year, 14% semiannual coupon bond with a par value of $1000 may be called in...
A 14-year, 14% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1030. The bond sells for $1150 (assume the bond has just been issued). a. What is the bond's yield to maturity? b. What is the bond's current yield? c. What is the bond's capital gain or loss yield? d. What is the bond's yield to call?
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in...
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,255.00. The bond sells for $950.50. (Assume that the bond has just been issued.). What is it’s yield to maturity?
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,300. What are the bond's nominal yield to maturity and its nominal yield to call? What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calculation, if required. Negative value should be indicated by a...
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,280. What is the bond's nominal yield to maturity?What is the bond's nominal yield to call?Would an investor be more likely to earn the YTM or the YTC? What is the current yield? Is this yield affected by whether the bond is likely to be...
A 20-year, 8% annual coupon bond with a par value of $1,000 may be called in...
A 20-year, 8% annual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: 20 Periods per year: 1 Periods to maturity: 20 Coupon rate: 8% Par value: $1,000 Periodic payment: $80 Current price $1,100 Call price: $1,040 Years till callable: 5 Periods till callable: 5 a.   What is the bond's...
One year ago, an investor purchased a 10-year, $1,000 par value, 8% semiannual coupon bond with...
One year ago, an investor purchased a 10-year, $1,000 par value, 8% semiannual coupon bond with an 8% yield to maturity. Now, one year later, interest rates remain unchanged at 8%. If the investor sells the bond today (immediately after receiving the second coupon payment, and with no transaction costs), he will have: A. a capital gain of $80. B. a capital loss of $80. C. no capital gain or loss.
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,150. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % Would an investor be more likely to earn the YTM or the YTC? What...
10. Regal Health Plans issued a 12% annual coupon bond with a $1,000 par value a...
10. Regal Health Plans issued a 12% annual coupon bond with a $1,000 par value a few years ago. The bond now has ten years remaining to maturity and sells for $1,100. The bond has a call provision that allows Regal to call the bond in two years at a call price of $1,200. What is the bond’s yield to call? Choice: 5.07% Choice: 14.57% Choice: 15.13% Choice: 100.0
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,300. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. % Would an...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT