Question

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 of return can you expect to earn?

The yield to maturity (YTM) or The yield to call (YTC)

Answer #1

a)

b)

c)

**The yield to call (YTC) will be earned as it is
lesser.**

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 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

Yield to maturity
A firm's bonds have a maturity of 14 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 7 years at
$1,076, and currently sell at a price of $1,140.50.
What is their nominal yield to maturity? Round your answer to
two decimal places.
%
What is their nominal yield to call? Round your answer to two
decimal places.
%
What return should investors expect to earn on these
bonds?
Investors would expect...

A firm's bonds have a maturity of 14 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 7 years at
$1,237.02, and currently, sell at a price of $1,406.34. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places. YTM: % YTC: % What return should investors expect
to earn on these bonds? Investors would expect the bonds to be...

A firm's bonds have a maturity of 12 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 6 years at
$1,065.79, and currently sell at a price of $1,124.91. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
YTM: %
YTC: %
What return should investors expect to earn on these bonds?
Investors would expect the bonds to be called and...

A firm's bonds have a maturity of 12 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 6 years at
$1,061.57, and currently sell at a price of $1,116.57. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
YTM: %
YTC: %
What return should investors expect to earn on these bonds?
Investors would expect the bonds to be called and...

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
$1,049.82, and currently sell at a price of $1,096.40. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
YTM: %
YTC: %
What return should investors expect to earn on these bonds?
Investors would not expect the bonds to...

A firm's bonds have a maturity of 14 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 7 years at
$1,239.57, and currently sell at a price of $1,413.52. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
YTM: %
YTC: %
What return should investors expect to earn on these bonds?
Investors would expect the bonds to be called and...

YIELD TO MATURITY
A firm's bonds have a maturity of 14 years with a $1,000 face
value, have an 11% semiannual coupon, are callable in 7 years at
$1,231, and currently sell at a price of $1,393.51.
What is their nominal yield to maturity? Do not round
intermediate calculations. Round your answer to two decimal
places.
______ %
What is their nominal yield to call? Do not round intermediate
calculations. Round your answer to two decimal places.
______ %
What...

A firm's bonds have a maturity of 12 years with a $1,000 face
value, have an 8% semiannual coupon, are callable in 6 years at
$1,060.00, and currently sell at a price of $1,113.57. What are
their nominal yield to maturity and their nominal yield to call? Do
not round intermediate calculations. Round your answers to two
decimal places.
_________YTM: %
_________YTC: %
What return should investors expect to earn on these bonds?
Investors would expect the bonds to be...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 16 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago