Question

A corporate bond pays interest annually and has 4 years to maturity, a face value of $1,000 and a coupon rate of 3.7%. The bond's current price is $1,007.35. It is callable at a call price of $1,050 in one year. Attempt 1/3 for 10 pts. Part 1 What is the bond's yield to maturity? 3.5% Correct ✓ Attempt 3/3 for 6 pts. Part 2 What is the bond's yield to call? 3+ decimals part two pleae fast

Answer #1

1.

FV = 1000

PMT = 1000 * 3.7% = 37

Nper = 4

PV = 1007.35

Yield to maturity can be calculated by using the following excel
formula:

=RATE(nper,pmt,pv,fv)

=RATE(4,37,-1007.35,1000)

= 3.50%

Yield to maturity = 3.50% or 3.5%

2.

Nper = 1

PMT = 1000 * 3.7% = 37

PV = 1007.35

FV = 1050

Yield to call can be calculated by using the following excel
formula:

=RATE(nper,pmt,pv,fv)

=RATE(1,37,-1007.35,1050)

= 0.0791 or 7.907%

Yield to call = 7.907% or 0.079

Note : Round the answer as per requirement.

A corporate bond pays interest annually and has 3 years to
maturity, a face value of $1,000 and a coupon rate of 3.6%. The
bond's current price is $1,002.8. It is callable at a call price of
$1,050 in one year.What is the bond's yield to maturity? What is
the bond's yield to call?

A corporate bond pays interest twice a year and has 16 years to
maturity, a face value of $1,000 and a coupon rate of 5.8%. The
bond's current price is $1,353.74. It is callable starting 10 years
from now (years to call) at a call price of $1,124.
1.What is the bond's (annualized) yield to maturity?
2.What is the bond's (annualized) yield to call?
3. If you buy the bond today and hold it as long as possible,
which rate...

1.A Corporate bond has an 8.50 percent coupon and pays interest
annually. The face value is $1,000 and the current market price is
$940. The bond matures in 21 years. What is the yield to
maturity?
How much are you willing to pay for one share of stock if the
company just paid an $.80 annual dividend, the dividends increase
by 5.5 percent annually and you require a 9 percent rate of
return?

1. A $1,000 par value corporate bond that pays $60 annually in
interest was issued at par last year. The current price of the bond
is $996.20.
Pick the correct statement about this bond from below.
The bond is currently selling at a premium.
The current yield exceeds the coupon rate.
The bond is selling at par value.
The current yield exceeds the yield to maturity.
The coupon rate has increased to 7 percent.
2. Dot Inns is planning on...

A bond with a face value of $1,000 pays $50 in interest annually
and matures in 1 year. The bond was purchased for $980. What is the
yield at maturity and coupon rate? A. The yield to maturity is
5.00% and the coupon rate is 5.10% B. Can't tell from the
information given C. The yield to maturity is 7.14% and the coupon
rate is 5.00% D. The yield to maturity is 5.10% and the coupon rate
is 7.00% E....

A 12-year, 5% coupon bond pays interest annually. The bond has a
face value of $1,000 and selling for $916. What is the yield to
maturity of this bond?

Question 1
a. A bond that pays interest semiannually is selling for 100% of
its $1,000 par value. The bond has a 4% coupon rate and paid a
coupon 1 month ago. What is this bond's invoice price?
b.A bond has a $1,000 par value,10 years to maturity, a 4.5%
coupon, and currently sells for $1,037. The bond pays coupons
semiannually. The bond is callable 3 years from today with a call
price of $1,020. What is this bond's yield...

A bond with 10 years to maturity has a face value of $1,000. The
bond pays an 8 percent semiannual coupon, and the bond has a 5.9
percent nominal yield to maturity. What is the price of the bond
today?

A bond has $1,000 face value, coupon rate of 3.5%, and yield to
maturity (YTM) of 3.7%. It will mature in 16 years and the interest
rate will compound annually. What is this bond’s current yield?

Consider a corporate bond with a face value of $1,000, 2 years
to maturity and a coupon rate of 4%. Coupons are paid
semi-annually. The next coupon payment is to be made exactly 6
months from today. What is this bond's price assuming the following
spot rate curve. 6-month spot rate: 3.2%. 12-month: 5%. 18-month:
5.5%. 24-month: 5.8%.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 19 minutes ago

asked 25 minutes ago

asked 34 minutes ago

asked 40 minutes ago

asked 41 minutes ago

asked 50 minutes ago

asked 50 minutes ago

asked 50 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago