Question

A 5.3% coupon bearing bond pays interest semi-annually and has a maturity of 16 years. If the current price of the bond is $973.72, what is the yield to maturity of this bond? (Answer to the nearest tenth of a percent, e.g. 12.34%)

Answer #1

K = Nx2 |

Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k] + Par value/(1 + YTM/2)^Nx2 |

k=1 |

K =16x2 |

973.72 =∑ [(5.3*1000/200)/(1 + YTM/200)^k] + 1000/(1 + YTM/200)^16x2 |

k=1 |

YTM% = 5.55 |

A 9.5% coupon bearing bond pays interest semi-annually and has a
maturity of 20 years. If the annual yield to maturity is 5.8%, what
is the current price of this bond? (Answer to the nearest
penny.)

A 8.5% coupon bearing bond pays interest semi-annually and has a
maturity of 6 years. If the annual yield to maturity is 5.6%, what
is the current price of this bond? (Answer to the nearest penny,
i.e. 999.99 but do not use a $ sign.)

A 6.7% coupon bearing bond that pays interest semi-annually has
a yield to maturity of 6.3% per year. If the bond has a duration of
13.2 years and the market yield decreases 32 basis points,
calculate an estimate of the percent price change due to duration
alone. (Answer to the nearest hundredth of a percent, i.e. 1.23 but
do not use a % sign).

A $1,000 par value bond is currently valued at $1,055. The bond
pays interest semi-annually, has 10 years to maturity, and has a
yield to maturity of 7.3 percent. The coupon rate is _____ percent
and the current yield is _____ percent.

A $1000 par value bond has a coupon rate of 7.7%, pays interest
semi-annually, matures in 22 years, and is priced at a 82.97
discount from par value. What is the annual yield to maturity of
this bond? (Answer to the nearest one hundedth of a percent, i.e.,
1.23 but do not include the % sign).

A bond has a coupon rate of 4.6% and pays coupons semi-annually.
The bond matures in 5 years and the yield to maturity on similar
bonds is 2%. Is this a par, premium or discount bond? What is the
price of the bond?
What is the coupon rate for the bond? Assume semi-annual
payments. Answer as a percent!
Bond
Coupon Rate
Yield
Price Quote
t
Apple B
?
3.7%
99.09
21

How do I get to the correct answer?
A 6.5% coupon bearing bond that pays interest semi-annually has
a yield to maturity of 8.2% per year. This bond has a duration of
13.1 years and a convexity of 134. If the market yield decreases 64
basis points, calculate an estimate of the percent price change due
to both duration and convexity. (Answer to the nearest hundredth of
a percent, i.e. 1.23 but do not use the % sign). Selected Answer:...

Suppose there is a bond with a 6% coupon (interest paid
semi-annually) and 15 years to maturity. If the yield to maturity
on this bond is currently 6%, what is the price of this bond?
What if the same bond (with a 6 % coupon, interest paid
semi-annually, and 15 years to maturity) were selling for $1,100
today. What is the yield to maturity?

A bond has a coupon rate of 3.6% and pays coupons semi-annually.
The bond matures in 3 years and the yield to maturity on similar
bonds is 4.3%. What is the price of the bond?

A bond has a coupon rate of 2.1% and pays coupons semi-annually.
The bond matures in 4 years and the yield to maturity on similar
bonds is 3.7%. What is the price of the bond?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 11 minutes ago

asked 16 minutes ago

asked 33 minutes ago

asked 46 minutes ago

asked 47 minutes ago

asked 48 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago