Question

bond has a $1,000 par value, 14 years to maturity, and pays a coupon of 8.25%...

bond has a $1,000 par value, 14 years to maturity, and pays a coupon of 8.25% per year, annually. The bond can be called in seven years at $1,045. If the bond’s current yield is 8.52% per year, what is its annual yield to maturity?

Question 7 options:

A)

 8.38%

B)

 8.42%

C)

 8.65%

D)

 8.58%

E)

 8.49%
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS CALCULATOR

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
A bond has a $1,000 par value, 16 years to maturity, and pays a coupon of...
A bond has a $1,000 par value, 16 years to maturity, and pays a coupon of 6.0% per year, annually. The bond can be called in seven years at $1,150. If the bond’s yield to maturity is 6.39% per year, what is its yield to call? Question 2 options: A) 8.68% B) 8.87% C) 8.11% D) 8.41% E) 7.87%
A bond has a $1,000 par value, 19 years to maturity, and pays a coupon of...
A bond has a $1,000 par value, 19 years to maturity, and pays a coupon of 5.75% per year, semiannually. The bond can be called in four years at $1,085. If the bond’s current yield is 5.54% per year, what is its yield to call? Question 10 options: A) 6.82% B) 6.76% C) 6.61% D) 6.91% E) 6.56%
A bond has a $1,000 par value, 10 years to maturity, and pays a coupon of...
A bond has a $1,000 par value, 10 years to maturity, and pays a coupon of 7.0% per year, semiannually. You expect the bond’s yield to maturity to decrease to 6.5% per year in two years. If you buy the bond today for $987.75 and sell it in two years, what is the annual return on your investment? Question 9 options: A) 9.42% B) 9.12% C) 8.96% D) 8.74% E) 9.04%
A bond has a $1,000 par value, ten years to maturity, and pays a coupon of...
A bond has a $1,000 par value, ten years to maturity, and pays a coupon of 6.0% per year, semiannually. If the bond’s required return is 5.7% per year, what is its current yield? Question 5 options: A) 5.87% B) 5.76% C) 5.82% D) 6.00% E) 5.94%
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually....
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually. What is the value of the bond if your required rate of return is 5%? 2. A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid semi-annually. What is the value of the bond if your required rate of return is 5%? 3.  A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid semi-annually. What...
A bond with seven years to maturity pays a 5.5% coupon semiannually. The par value of...
A bond with seven years to maturity pays a 5.5% coupon semiannually. The par value of the bond is $1,000 and the current price is $971.76. a) If you bought the bond today, what yield to maturity would you earn if you held it to maturity? b) If you sold it for $986.22 in one year, what would your total return be? Assume you collect both coupon payments.
YZX Corp. has a bond issue with a $ 1,000 par value and a 15% coupon...
YZX Corp. has a bond issue with a $ 1,000 par value and a 15% coupon rate. It pays interest semi-annually and has 7 years remaining to maturity. It just made a coupon payment (i.e., it has 14 coupon payments left to make).If the bond’s current price is $ 1,170, what is the bond’s yield to maturity? Enter your answer as a percent without the % sign. Round your final answer to two decimals.
A coupon bond pays annual interest, has a par value of $1,000, matures in four years,...
A coupon bond pays annual interest, has a par value of $1,000, matures in four years, has a coupon rate of 10%, and has a yield to maturity of 12%. The current yield on this bond is
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon paid semiannually,...
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon paid semiannually, and a $1,000 par value. The bond has a 6.75% nominal yield to maturity, but it can be called in 4 years at a price of $1,085. What is the bond’s nominal yield to call? 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...
our firm has a 7-year, RM 1,000 par outstanding bond with an 8.25 percent annual coupon....
our firm has a 7-year, RM 1,000 par outstanding bond with an 8.25 percent annual coupon. The current yield to maturity is 7.1 percent. The bond can be called in three years at a call price of RM 1,020. Assume there will be no change in the term structure of interest rates, what is the estimated yield to call of this bond?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT