Question

**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?

Answer #1

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 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 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 $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 $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 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 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 $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 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 $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...

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