Question

A bond has 1000 per value 25 years to maturity and pays A coupon of 4.75...

A bond has 1000 per value 25 years to maturity and pays A coupon of 4.75 per year annually. The bons can be called in 10 years at $1100 if the bonds price is 1,069.38 what is its yield to call?

Homework Answers

Answer #1

Please upvote if the ans is helpful. In case of doubt,Do comment.Thanks.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity if the required return on these bonds is 3%? Consider a bond with par value of $1000, 25 years left to maturity, and a coupon rate of 6.4% paid annually. If the yield to maturity on these bonds is 7.5%, what is the current bond price? One year ago, your firm issued 14-year bonds with a coupon rate of 6.9%. The bonds make semiannual...
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%
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%
A bond has a face value $1000, maturity of 10 years, and a coupon rate of...
A bond has a face value $1000, maturity of 10 years, and a coupon rate of 8%, paid semi-annually. Assuming the yield-to-maturity is 10%, the current price of the bond is:
A bond has a face value of $1000 with a time to maturity ten years from...
A bond has a face value of $1000 with a time to maturity ten years from now. The yield to maturity of the bond now is 10%. a) What is the price of the bond today, if it pays no coupons? b) What is the price of the bond if it pays annual coupons of 8%? c) What is the price today if pays 8% coupon rate semi-annually?
Three years ago, Jack's automotive issued a 10 year callable bond with a $1000 maturity value...
Three years ago, Jack's automotive issued a 10 year callable bond with a $1000 maturity value and a 7.75% coupon rate of interest. Interest is paid semi- annually. The bond, which matures  in fives years, is currently selling for $1065. A. whist is the bond's yield to maturity? B. If the bond can be called in 2 years for a call price of $1090, which is the bond's yield to call?
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments and a $1000 par value. the bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. what is the bonds nominal yield to call?
A bond has three years to maturity. It pays a 10% coupon rate annually, a $1000...
A bond has three years to maturity. It pays a 10% coupon rate annually, a $1000 face value, and the market rate of interest is 8%. What is the duration of the bond?
A corporate bond pays interest annually and has 3 years to maturity, a face value of...
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?