Question

A 30-year U.S. 8% coupon bond with 25 years left to maturity is callable in 16 years. The call premium is 9%; if the bond is selling today for $980, what is the yield to call?

Answer #1

Suppose GM has an 8% coupon rate, 30-year maturity, callable
coupon bond currently selling for 115.0 and is callable 10 years
from now at a call price of 110.0. What is the yield to call (YTC)
for the bond? (Round to two decimal places)

A 30-year maturity, 8% coupon bond paying coupons semiannually
is callable in 5 years at a call price of $1100. The bond currently
sells at a yield to maturity (YTM) of 7% (3.5% per half-year). What
is the yield to call? How does it relate to the YTM?
Why?

A 30-year maturity, 12% coupon bond paying coupons semiannually
is callable in ten years at a call price of $1,100. The bond
currently sells at a yield to maturity of 8%.
What is the yield to call?
What is the yield to call if the call price is only
$1,050?
What is the yield to call if the call price is $1,100 but the
bond can be called in five years instead of ten years?

An 8% coupon bond, $1,000 par value, annual payments, 10 years
to maturity is callable in 7 years at a call price of $1,200. If
the bond is selling today for $900, the yield to call is closest
to

A company currently has an 8 years bond that is callable in 3
years from today with a call premium of 1%. This bond annual coupon
rate is 9% paid semi-annually and it is currently selling at $1,020
per share. What is the bond annual yield to call and the bond
annual yield to maturity? Also, if general interest rate is
expected to remains unchanged, based on comparison between yield to
call and yield to maturity that you have calculated,...

A company currently has an 8 years bond that is callable in 3
years from today with a call premium of 1%. This bond annual coupon
rate is 9% paid semi-annually and it is currently selling at $1,020
per share. What is the bond annual yield to call and the bond
annual yield to maturity? Also, if general interest rate is
expected to remains unchanged, based on comparison between yield to
call and yield to maturity that you have calculated,...

A 30-year maturity 10% coupon bond paying coupons semiannually
is callable in 10 years at a call price of $1,200. The bond
currently sells at a yield to maturity of 5%.
a) What is the selling price of the bond at present?
b) What is the yield to call?
c) Suppose that the investor decided to hold the bond only for 5
years. The reinvestment rate of coupon payments is 8.5%. The
forecasted yield to maturity by the end of...

what is would a 25 year callable bond be worth it it
was purchased 8 years ago, has a coupon rate of 10% payable
annually , and the yield on similar investments is 9%? the call
premium is one year's annual interest

Question 2
a) A bond of 10 years maturity is left with 8 years to maturity
today. Its coupon rate is 10%, paying annual coupon with par value
of $1,000. What is the price of the bond today if the yield to
maturity is 8%? Is it a premium bond or discount bond?
b) Recently, a 30-year corporate bond issued by Liz Co. has been
downgraded by a credit rating agency from AAA to B. Other things
being constant, what...

ABC
Co. bonds have a term to maturity of 15 years, callable, 8%
semi-annual coupon bonds at their par value of $1000. the bond is
selling for $925 today. the call price is $1080. if the bond is
expected to be called in 5 years, how much is the yield to
call?

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