Question

You are provided with an excerpt from FINRA on a Disney bond with a par value...

You are provided with an excerpt from FINRA on a Disney bond with a par value of $1000 and semi-annual payments. Assume today is 10/15/20.

DISNEY WALT CO

Coupon Rate 3.700 % Maturity Date 10/15/2025

Last Trade Price

$107.82

Last Trade Yield

???????

a) What is the current yield on this bond?

b) What is the YTM on this bond?

c) If the bond is called in 3 years from now at 120% of par, what is the YTC?


Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a)

Current yield:

= Annual coupon payments÷Bond price

= $37/$1,078.20

= 3.43%

Hence, current yield 3.43%

b)

c)

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
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,280. What is the bond's nominal yield to maturity?What is the bond's nominal yield to call?Would an investor be more likely to earn the YTM or the YTC? What is the current yield? Is this yield affected by whether the bond is likely to be...
Price the following: 12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM)...
Price the following: 12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM) is 8%. 10-year, $1000 par value, 8% quarterly coupon bond whose current nominal YTM is 7%. 30-year, $1000 par value, zero-coupon bond whose current nominal YTM is 9.5%. 13-year, $1000 par value, 8% monthly coupon bond whose current nominal YTM is 10%. 5-year, $500 par value, 8% semi-annual coupon bond whose current nominal YTM is 8.25%
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,280. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM:   % YTC:   % Would an investor be more likely to earn the YTM or the YTC? -Select-Since the YTM...
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,070 and it sells for $1,280. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM:   % YTC:   % Would an investor be more likely to earn the YTM or the YTC? -Select-Since the YTM...
Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065 and it sells for $1,200. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM:   % YTC:   % Would an investor be more likely to earn the YTM or the YTC? -Select-Since the YTM...
Consider the bond below. A semi-annual coupon paid March 31 & September 30: Par Value $1000...
Consider the bond below. A semi-annual coupon paid March 31 & September 30: Par Value $1000 ; Coupon rate7%; Purchase date 6/30/2020; Yield to maturity 9%; Final maturity date 3/31/2025 1. What is the clean price if the bond was purchased on June 30, 2020? 2. What is the full invoice price if the bond was purchased on June 30, 2020?
Consider the bond below. A semi-annual coupon paid March 31 & September 30: Par Value $1000...
Consider the bond below. A semi-annual coupon paid March 31 & September 30: Par Value $1000 ; Coupon rate7%; Purchase date 6/30/2020; Yield to maturity 9%; Final maturity date 3/31/2025 1. What is the clean price if the bond was purchased on June 30, 2020? 2.What is the full invoice price if the bond was purchased on June 30, 2020?
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,200. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM:   % YTC:   % Would an investor be more likely to earn the YTM or the YTC? -Select- 1)Since the...
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,180. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.   % What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.   % Would an...
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,300. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM:   % YTC:   % Would an investor be more likely to earn the YTM or the YTC? -Select-Since the YTM...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT