Question

cayon Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000...

cayon Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 10 years at a price of $1,050. What is the bond's nominal yield to call?

*Mention the excel functions you used and the value of each input you entered.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

*Any doubt please comment

YTC = 6.22%

Excel workings:

PMT 43.75 [1000*8.75%*1/2]
NPER 30 [15 years*2]
PV 1000
Rate 3%
PV $1,213.55 rate [ nper,pmt, pv,fv]
PMT 43.75 [1000*8.75%*1/2]
NPER 20 [10 years*2]
PV $1,213.55
FV $1,050.00
Rate 3.11% rate [ nper,pmt, pv,fv]
YTC 6.22%

Excel:

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
Mercy Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000...
Mercy Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, 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 $1,050. What is the bond's nominal yield to call? please show all work
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000...
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, 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 $1,195. What is the bond's nominal yield to call? Select the correct answer. a. 7.32% b. 7.16% c. 7.64% d. 7.48%
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000...
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, 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 $1,105. What is the bond's nominal yield to call? Select the correct answer. a. 5.80% b. 5.50% c. 5.35% d. 5.95% e. 5.65%
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000...
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, 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 $1,115. What is the bond's nominal yield to call? Select the correct answer. a. 6.53% b. 6.07% c. 6.76% d. 5.84% e. 6.30%
Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a...
Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a par value of $1,000. The bonds are currently selling at a premium price of $1,100 in the bond market. What is their yield to maturity (YTM)?
Kebt Corporation's Class Semi bonds have a 12-year maturity and an 8.75% coupon paid semiannually (4.375%...
Kebt Corporation's Class Semi bonds have a 12-year maturity and an 8.75% coupon paid semiannually (4.375% each 6 months), and those bonds sell at their $1,000 par value. The firm's Class Ann bonds have the same risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is callable. At what price should the annual payment bond sell? a. $ 937.56 b. $1,036.18 c. $ 986.25 d. $ 961.60 e. $1,010.91
Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a...
Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a par value of $1,000. The bonds are currently selling at a premium price of $1,150 in the bond market. What is their yield to maturity (YTM)? 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 in the answer box.
1. Yield to Maturity and Required Returns The Brownstone Corporation's bonds have 5 years remaining to...
1. Yield to Maturity and Required Returns The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8% What is the yield to maturity at a current market price of $1,062? Round your answer to two decimal places. 2. Yield to Maturity and Call with Semiannual Payments Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000...
- Nesmith Corporation's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 9 years...
- Nesmith Corporation's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 9 years to maturity, and a 10% YTM. What is the bond's price? - A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,054.06, and currently sell at a price of $1,105.17. What are their nominal yield to maturity and their nominal yield to call?
Moody's Corporation's bonds have a 15-year maturity, a 7.25% coupon paid semiannually, and a par value...
Moody's Corporation's bonds have a 15-year maturity, a 7.25% coupon paid semiannually, and a par value of $1,000. If the going market interest rate for bonds of similar risk and maturity is 6.00% (based on semiannual compounding), what is the bond's price? Your answer should be between 1075.00 and 1275.00.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT