Question

**a.** The five-year bond yields 6.4% and has a
coupon of 8.5%. If this yield to maturity remains unchanged, what
will be its price one year hence? Assume annual coupon payments and
a face value of $100. **(Do not round intermediate
calculations. Round your answer to 2 decimal places.)**

b. What is the total return to an investor who held the bond
over this year? **(Do not round intermediate calculations.
Enter your answer as a percent rounded to 2 decimal
places**

**Please show how your work!**

Answer #1

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a. The twenty-year bond yields 6.5% and has a coupon of 8.5%. If
this yield to maturity remains unchanged, what will be its price
one year hence? Assume annual coupon payments and a face value of
$100. (Do not round intermediate calculations. Round your answer to
2 decimal places.) Price $ b. What is the total return to an
investor who held the bond over this year? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to...

The 7.9%, ten-year bond yields 5.9%. If this yield to
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Assume annual coupon payments and a face value of $1,000. What is
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year?
A government bond matures in 4 years, makes annual
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a) Suppose that one year later the bond...

You buy a 20-year bond with a coupon rate of 9.8% that has a
yield to maturity of 10.9%. (Assume a face value of $1,000 and
semiannual coupon payments.) Six months later, the yield to
maturity is 11.9%. What is your return over the 6 months?
(Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places. Negative amount
should be indicated by a minus sign.)
Please Explain Answer

A bond with a face
value of $1,000 has 14 years until maturity, carries a coupon rate
of 8.6%, and sells for $1,104.
a.
What is the current yield on the bond? (Enter your answer
as a percent rounded to 2 decimal places.)
b.
What is the yield to maturity if interest is paid once a year?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 4 decimal places.)
c.
What is the yield to maturity...

Maxcorp’s bonds sell for $1,152.98. The bond life is 9 years,
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(Do not round intermediate calculations. Enter your answer as a
percent rounded to 2 decimal places.)

Calculate the yield to maturity
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a.
A 8.7 percent coupon (paid semiannually) bond, with a $1,000
face value and 11 years remaining to maturity. The bond is selling
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your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
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b.
An 5.8 percent coupon (paid quarterly) bond, with a $1,000 face
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Calculate the yield to maturity
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a.
A 8.2 percent coupon (paid semiannually) bond, with a $1,000
face value and 22 years remaining to maturity. The bond is selling
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your answer to 3 decimal places. (e.g., 32.161))
Yield to
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9.
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a.
What is the current yield for Bond P and Bond D? (Do not
round intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
b.
If...

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(Do not round intermediate calculations. Round your answer to 3
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a.
What is the current yield for Bond P and Bond D? (Do not
round intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.)
b.
If...

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