Question

A bond that settles on June 7, 2016, matures on July 1, 2036,
and may be called at any time after July 1, 2026, at a price of
126. The coupon rate on the bond is 6.2 percent and the price is
146.50. What are the yield to maturity and yield to call on this
bond? **(Do not round intermediate calculations. Enter your
answers as a percent rounded to 2 decimal places.)**

Yield to maturity?

yield to call?

Answer #1

Following information are provided in the question:

Settlement Date = 7th June 2016

Maturity Date = 1st July 2036

Callable Date = 1st July 2026

Callable Price = $126

Coupon rate = 6.2%

Price = $146.5

Yield can be found using excel formula =YIELD as follows

=YIELD(settlement date,maturity date,rate,pr,redemption,frequency)

Thus, **Yield to Maturity = 3.06%**

**Yield to Call = 3.02%**

A Treasury bond that settles on August 10, 2016, matures on
August 3, 2021. The coupon rate is 4.3 percent and the quoted price
is 103:5. What is the bond’s yield to maturity?
(
Yield to maturity?

A Treasury bond that settles on August 10, 2016, matures on
February 23, 2024. The coupon rate is 7.0 percent and the quoted
price is 117:15. What is the bond’s yield to maturity?
yield to maturity?

A Treasury bond that settles on October 18, 2016, matures on
March 30, 2035. The coupon rate is 5.50 percent and the bond has a
yield to maturity of 4.73 percent. What are the Macaulay duration
and modified duration?

A Treasury bond that settles on October 18, 2016, matures on
March 30, 2035. The coupon rate is 5.55 percent and the bond has a
yield to maturity of 4.80 percent. What are the Macaulay duration
and modified duration?
Macaulay duration:
Modified duration:

A bond has a yield to maturity of 8 percent. It matures in 10
years. Its coupon rate is 8 percent. What is its modified duration?
The bond pays coupons twice a year. (Do not round intermediate
calculations. Enter your answers rounded to 2 decimal places.)

Assume a municipal bond has 22 years until maturity and sells
for $5,265. It has a coupon rate of 4.20 percent and it can be
called in 12 years. What is the yield to call if the call price is
105 percent of par? (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places.)
Yield to call:

A bond with a face value of $1,000 matures in 10 years and has
a
9.7 percent semiannual coupon. (That is, the bond
pays a $48.50 coupon every six months.)
The bond has a nominal yield to maturity of 10.3 percent, and
it can be called in 2
years at a call price of $1,019.00. What is the
bond’s nominal yield to call?
15.71%
13.71%
16.71%
12.71%
14.71%

Find the duration of a bond with settlement date June 16, 2016,
and maturity date December 25, 2025. The coupon rate of the bond is
5%, and the bond pays coupons semiannually. The bond is selling at
a yield to maturity of 6%. (Do not round intermediate calculations.
Round your answers to 4 decimal places.)
Macaulay duration =
Modified duration =

Find the duration of a bond with settlement date June 16, 2016,
and maturity date December 25, 2025. The coupon rate of the bond is
5%, and the bond pays coupons semiannually. The bond is selling at
a yield to maturity of 6%. (Do not round intermediate calculations.
Round your answers to 4 decimal places.)
Macaulay duration =
Modified duration =

Find the duration of a bond with settlement date June 10, 2016,
and maturity date December 13, 2025. The coupon rate of the bond is
7%, and the bond pays coupons semiannually. The bond is selling at
a yield to maturity of 8%. (Do not round intermediate calculations.
Round your answers to 4 decimal places.) Macaulay duration Modified
duration

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