Question

A 5 percent coupon bond has 20 years left to maturity and has a price quote of 95 (quoted bond price is $950). The bond can be called in five years and if called would generate a yield to call of 8 percent. Compute the bond's current yield, yield to maturity and call price. (Assume interest payments are paid semi-annually and a par value of $1,000.)

Answer #1

A 5 percent coupon bond has 20 years left to maturity and has a
price quote of 95 (quoted bond price is $950). The bond can be
called in five years and if called would generate a yield to call
of 8 percent. Compute the bond's current yield, yield to maturity
and call price. (Assume interest payments are paid semi-annually
and a par value of $1,000.)

A 4.25 percent coupon municipal bond has 10 years left to
maturity and has a price quote of 108.75. The bond can be called in
five years. The call premium is one year of coupon payments. What
is the bond's taxable equivalent yield for an investor in the 28
percent marginal tax bracket? (Assume interest payments are paid
semiannually and a par value of $1,000.)

A 3.25 percent coupon municipal bond with a par value of $5000
has 12 years left to maturity and has a current price of $4937.50.
The bond can be called in five years. The call premium is one year
of coupon payments. What is the bond's taxable equivalent yield for
an investor in the 35 percent marginal tax bracket? (Assume
interest payments are paid semi-annually and a par value of
$5,000.) Hint: Calculate the yield of this municipal bond (and...

A 4.25 percent coupon bond with eight years left to maturity is
offered for sale at $983.36. What yield to maturity is the bond
offering? (Assume interest payments are paid semi-annually and par
value is $1,000.)

Compute Bond Price Compute the price of a 4.75 percent coupon bond
with 15 years left to maturity and a market interest rate of 6.25
percent. (Assume interest payments are semi-annual and par value is
$1,000.) Is this a discount or premium bond?

A 9 percent coupon bond with 13 years left to maturity is
offered for sale at $1,350. What yield to maturity is the bond
offering? (Assume interest payments are paid semi-annually.)
can anyone do it without calculator?

What is the price of a $1000 face value zero-coupon bond with 4
years to maturity if the required return on these bonds is 3%?
Consider a bond with par value of $1000, 25 years left to
maturity, and a coupon rate of 6.4% paid annually. If the yield to
maturity on these bonds is 7.5%, what is the current bond
price?
One year ago, your firm issued 14-year bonds with a coupon rate
of 6.9%. The bonds make semiannual...

A 5.90 percent coupon bond with 18 years left to maturity can be
called in four years. The call premium is one year of coupon
payments. It is offered for sale at $1,105.50. What is the yield to
call of the bond? (Assume interest payments are semiannual.) (Round
your answer to 2 decimal places.)

1. A 9-year zero coupon bond has a yield to maturity of
11.8 percent, and a par value of $1,000. What is the
price of the bond?
2. A 7-year bond has a 8 percent coupon rate with the interest
paid in semi annual payments. The yield to maturity of
the bond is 2.3 percent, and a face value of
$1,000. What is the price of the bond?
3. A 12-year bond has a 9 percent annual coupon, a yield to
maturity of...

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