Question

Uzlet Inc. has a bond outstanding with 14 years to maturity, a 6.25% nominal coupon, semiannual...

Uzlet Inc. has a bond outstanding with 14 years to maturity, a 6.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 5.50% nominal yield to maturity, but it can be called in 5 years at a price of $1,025. What is the bond’s nominal yield to call? Show work. Put your answer in a complete sentence.

Hint: Calculate the bond’s price, its PV first.
Don’t forget payments are semiannual, so periods have to be doubled.

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
Rocky Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual...
Rocky Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual payments, and a $1,000 par value.  The bond has a 5% nominal yield to maturity, but it can be called in 5 years at a price of $1,120.  What is the bond’s nominal yield to call? ?
Shimo Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual...
Shimo Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 5% nominal yield to maturity, but it can be called in 5 years at a price of $1,120. What is the bond’s nominal yield to call? Show work.
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments and a $1000 par value. the bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. what is the bonds nominal yield to call?
QUESTION 6 Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal...
QUESTION 6 Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,175. What is the bond’s nominal yield to call? a. 7.18% b. 7.39% c. 6.03% d. 7.47% e. 8.04%
3) A bond currently sells for $850.  It has an eight-year maturity, an annual coupon of $80...
3) A bond currently sells for $850.  It has an eight-year maturity, an annual coupon of $80 but paid semi-annually, and a par value of $1,000. This bond has a callable feature. If this bond can be called after 5 years, for $1,025. (1) What is its annual yield to maturity?   (2) What is its current yield?     (3) What is the bond’s nominal yield to call (YTC)? (4)   If you bought this bond, would you be more likely to earn the YTM...
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon paid semiannually,...
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon paid semiannually, and a $1,000 par value. The bond has a 6.75% nominal yield to maturity, but it can be called in 4 years at a price of $1,085. What is the bond’s nominal yield to call? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35...
A company has outstanding bonds with a $ 1,000 par value, a 7% coupon with semiannual...
A company has outstanding bonds with a $ 1,000 par value, a 7% coupon with semiannual payments. What is the bond’s price if there are 9 years to maturity, and the yield to maturity is 9%? N= I= PV= PMT= FV=
Alphabet Inc. has a 7 percent coupon bond outstanding that matures in 13.5 years. The bond...
Alphabet Inc. has a 7 percent coupon bond outstanding that matures in 13.5 years. The bond makes semiannual coupon payments. The par value of the bond is $1000, and it is currently selling on the market for $550.40. What is the bond’s yield-to-maturity?
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate...
Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.6% with semiannual payments of $38, and a par value of $1,000. The price of each bond in the issue is $1,220.00. The bond issue is callable in 5 years at a call price of $1,076. What is the bond's current yield? Round your answer to two decimal places. Do not round intermediate calculations. % What is the bond's nominal annual yield to...
A 3.20 percent coupon municipal bond has 10 years left to maturity and has a price...
A 3.20 percent coupon municipal bond has 10 years left to maturity and has a price quote of 96.45. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) Compute the bond’s current yield. (Round your answer to 2 decimal places.) Current yield % Compute the yield to maturity. (Round your answer to 2 decimal places.) Yield to maturity % Compute the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT