Question

•A 20-year, $1,000 par value bond has an 6.5% annual payment coupon. The bond currently sells for $1025. If the yield to maturity remains at its current rate, what will the price be 8 years from now?

Answer #1

A 30-year, $1,000 par value bond has an annual payment coupon of
7.5%. The bond currently sells for $910. If the yield to maturity
remains at its current rate what will the price be 10 years from
now?

A 30-year, $1,000 par value bond has a 7.5% annual payment
coupon. The bond currently sells for $910. If the yield to maturity
remains at its current rate, what will the price be 10 years from
now?
$884.19
$921.01
$930.96
$947.25
$978.50

A 20-year, $1,000 par value bond has a 9% semi-annual coupon.
The bond currently sells for $925. If the yield to maturity remains
at its current rate, what will the price be 8 years from now?
a.
$937.7
b.
$956.95
c.
$939.85
d.
$503.21

A 25-year, $1,000 par value bond has an 8.5% annual payment
coupon. The bond currently sells for $925. If the yield to maturity
remains at its current rate, what will the price be 10 years from
now?
a.
$950.49
b.
$930.11
c.
$865.00
d.
$850.49
e.
$1021.11

A 20-year, $1,000 par value bond has a 9% semi-annual coupon.
The bond currently sells for $925. If the yield to maturity remains
at its current rate, what will the price be 10 years from now? a.
$935.01 b. $930.01 c. $952.84 d. $945.72

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The
bond currently sells for $875. If the yield to maturity remains at
its current rate, what will the price be 5 years from now?

A 25 year, $1000 par value bond has an 8.5% annual payment
coupon. The bond currently sells for $790. If the yield to maturity
remains at its current rate, what will the price be 5 years from
now?

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The
bond currently sells for $875. If the yield to maturity remains at
its current rate, what will be price be 7 years from now?
*Mention the excel functions you used and the value of each
input you entered

1. Analyze the 20-year, 8% coupon rate (Semi-annual payment),
$1,000 par value bond. The bond currently sells for $1,218. What's
the bond's yield to maturity?
A. 5.06%
B. 5.68%
C. 5.38%
D. 6.10%
2. Analyze the 20-year, 8% coupon rate (Semi-annual payment),
$1,000 par value bond. The bond currently sells for $1,218. What's
the bond's current yield, and capital gain yield? (Please show your
work)
A. 6.57%, -0.47%
B. 6.07%, -0.69%
C. 6.57%, -0.47%
D. 6.07%, 0.69%

A 20-year, 8% annual coupon bond
with a par value of $1,000 may be called in 5 years at a call price
of $1,040. The bond sells for $1,100. (Assume that the bond has
just been issued.)
Basic Input Data:
Years to maturity:
20
Periods
per year:
1
Periods
to maturity:
20
Coupon
rate:
8%
Par
value:
$1,000
Periodic
payment:
$80
Current
price
$1,100
Call
price:
$1,040
Years
till callable:
5
Periods
till callable:
5
a. What is the bond's...

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