Question

A bond
makes annual coupon payment of $65. If it offers a yield to
maturity of 9.5 % :

What
is the price of the bond knowing that it matures in five
years?

What
would have been the price if it was paying semi-annual coupons for
five years?

Answer #1

It is assumed that face value of the bond is $1,000 to be redeemed at par.

**Scenario 1: Coupon paid
annually.**

Price of the
bond**=$884.81**

**Scenario 2: Coupon paid
semi annually.**

Price of the
bond**=$882.75**

Detailed calculation using PV function of Excel as follows:

Gugenheim, Inc. offers a 7 percent coupon bond with annual
payments. The yield to maturity is 8.3 percent and the maturity
date is 7 years. What is the market price of a $1,000 face value
bond?
A $1000 face value bond has two years left to maturity, 5.6%
coupon rate with annual coupons, and is currently trading at $915.
What is the YTM on this bond?

A 6% coupon bond Which face value $1000, Maturity of five years
and paying semi-annual coupon payment sales of $1050
A) What is yield to maturity.
b) what would happen if yield to maturity if it’s price suddenly
falls to $900.

1. Calculate bond price if the coupon payment is 8%, yield for
the bond is 10%, bond's face value is 1,000 and matures in 6, if
paid semi-annually
(Enter the answer in dollar format without $ sign or thousands
comma -> 3519.23 and not $3,519.23 or 3,519.23)
2. Calculate the annual coupon payment if the semi-annual coupon
paying bond price is $803, the yield for the bond is 5%, the bond's
face value is $1,000 and matures in 6 years....

18. Compute the yield to maturity of a $2,500 par value bond
with a coupon rate of 7.8% (quarterly payments - that is, four
times per year) that matures in years. The bond is currently
selling for $3,265
19. What is the yield to maturity of a $ par value bond with a
coupon rate of 9.5% (semi-annual coupon payments) that matures in
28 years assuming the bond is currently selling for
$838.137
par
value 1000

A government bond matures in 20 years, makes annual coupon
payments of 6.0% and offers a yield of 3.7% annually compounded.
Assume face value is $1,000. Suppose that five year later, the bond
still yields 2.7%. What return has the bondholder earned over the
five years?

Guggenheim, Inc. offers a 6.2% coupon bond with annual payments.
The yield to maturity is 5.85% and the maturity date is 9 years.
What is the market price of a $880 face value bond?

Company A offers a zero coupon bond with a yield to maturity of
25 percent. The bond matures in 1 years and has a face value of
$1,000. What is this bond worth today? Assume annual
compounding.
A) $1000
B) $800
C) $1250
D) $1562.5
E) $640

A bond has an 8.2 percent coupon (and makes semi-annual coupon
payments), a $1,000 par value, matures in 12.5 years, and is priced
to provide a yield to maturity of 7.00 percent.
What is the current yield?

Luxury properties offers bond with a coupon rate of 9.5% paid
semiannually. The yield to maturity is 11.2% and the maturity date
is 11 years from today. What is the market price of this bond if
the face value is $1,000?
Solve using excel

What is the price of a bond paying a 6% semi-annual coupon bond
if the yield on the bond is 7.5% and the bond has 3 years to
maturity? Assume the face value of the bond is $1000.

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