Question

There is a time limit. A company issued a ten-year $1,000 face value bond at par...

There is a time limit.

A company issued a ten-year $1,000 face value bond at par with a coupon rate of 6.7% paid semiannually. The YTM at the beginning of the third year of the bond (eight years left to maturity) is 8.1%. What was the percentage change in the price of the bond over the past two years? ________% (round to 1 decimal, include “-“ if the value is negative)

Homework Answers

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
A company issues a​ ten-year bond at par with a coupon rate of 6.1% paid​ semi-annually....
A company issues a​ ten-year bond at par with a coupon rate of 6.1% paid​ semi-annually. The YTM at the beginning of the third year of the bond​ (8 years left to​ maturity) is 99​%. What is the new price of the​ bond? A. $1,005 B. $837 C. $1,172 D. ​$1,000
Assume that the XYZ Company issued a bond with a face value of $1,000, and coupon...
Assume that the XYZ Company issued a bond with a face value of $1,000, and coupon rate of 10%. if the YTM is now 6% and there are 14 years left to maturity and the company gives semi annual coupon. What is the bond price?
A company issues a​ ten-year bond at par with a coupon rate of 6.1​% paid​ semi-annually....
A company issues a​ ten-year bond at par with a coupon rate of 6.1​% paid​ semi-annually. The YTM at the beginning of the third year of the bond​ (8 years left to​ maturity) is 8.9​%. What is the new price of the​ bond?
The Sisyphean Company has a bond outstanding with a face value of $ 1,000 that reaches...
The Sisyphean Company has a bond outstanding with a face value of $ 1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.1​% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $ 876​, then the YTM for this bond is closest​ to:
Acme, Ltd. issued a bond having a par value of $1,000, a ten-year life and a...
Acme, Ltd. issued a bond having a par value of $1,000, a ten-year life and a 10% coupon rate. If interest is paid semiannually and investors require an 11% rate of return, what is the value of the bond?
1. A $1,000 par value bond was just issued with a 30 year maturity and a...
1. A $1,000 par value bond was just issued with a 30 year maturity and a 6% coupon rate. If an investor has a required return of 8%, how much should they pay for this bond? Make sure to include 2 decimals in your answer. 2. A $1,000 par value bond was originally issued with a 30 year maturity and a 9% coupon rate. 8 years have passed since the bond was issued and the bond now has 22 years...
So since the bond was issued a year ago at a 13 year bond since a...
So since the bond was issued a year ago at a 13 year bond since a year had gone by it now is 12 years left but since the bond is paid semiannually we multiple it by 2 and get 24. The coupon rate is 6.25% but since it is paid semiannually we divide it by 2. Par is still 1000. The current YTM is 7.68 but it is still semiannual so we need to divide that by 2. We...
A ten-year zero coupon bond with a face value of $1,000 is currently priced at 48.72%...
A ten-year zero coupon bond with a face value of $1,000 is currently priced at 48.72% of the face value. Assume the bond's YTM remains unchanged throughout the bond's term to maturity. What should the bond be sold for three years from now? please explain in detail... if you use financial calculator please label steps :)
Three 10-year, $1,000 par value, noncallable bonds have the same level of risk. Bond EIGHT has...
Three 10-year, $1,000 par value, noncallable bonds have the same level of risk. Bond EIGHT has an eight percent annual coupon, Bond TEN has a ten percent annual coupon, and Bond TWELVE has a twelve percent annual coupon. Bond TEN sells for $1,000. Assuming that interest rates remain constant for the next ten years, which of the following statements is CORRECT? - Bond EIGHT sells at a discount (its price is less than par), and its price is expected to...
2) Assume that a company issued a bond with $1,000 face value, 10% coupon rate, 20...
2) Assume that a company issued a bond with $1,000 face value, 10% coupon rate, 20 years maturity, if this bond is sold after 5 years, how much this bond will be sold if the yield to maturity (YTM) is 8%? What is the current yield?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT