Question

I need on this please. Question 6: A premium annual-pay bond pays a $83 coupon, has...

I need on this please.

Question 6: A premium annual-pay bond pays a $83 coupon, has a yield to maturity of 5.18%, and is priced at $1196.39. How many years till the bond matures? Answer in years to at least two decimal places.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculate the number of years required for maturity as follows:

Therefore, the number of years required for maturity is 7.81 Years.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
HW9 #6) Bond A pays annual coupons, pays its next coupon in 1 year, matures in...
HW9 #6) Bond A pays annual coupons, pays its next coupon in 1 year, matures in 12 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 13 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 8.46 percent and is priced at 836.24 dollars. Bond B has a coupon rate of 7.72...
What is the value of a bond that pays a 6% semi-annual coupon, has a face...
What is the value of a bond that pays a 6% semi-annual coupon, has a face value of $1,000, matures in 20 years, and has a yield to maturity of 8%? Question 45 options: $803.64 $808.43 $805.12 $802.07
A coupon bond pays annual interest, has a par value of $1,000, matures in 12 years,...
A coupon bond pays annual interest, has a par value of $1,000, matures in 12 years, has a coupon rate of 11%, and has a yield to maturity of 12%. The current yield on this bond I need this to be written step by step Please. If you got a number from somewhere I need to know where it's from.
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 17 years,...
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 17 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 15 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 9.28 percent and is priced at 998.32 dollars. Bond B has a coupon rate of 9.62 percent. What...
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years...
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years and has a face value of one thousand. Bond B pays semi annual coupons pays its next coupon in six months, matures in three years and has a face value of one thousand. The two bonds have the same yield to maturity. Bond A has a coupon rate of 7.70 percent and is priced at $736.19. Bond B has a coupon rate of 6.40...
An investor must choose between two bonds: Bond A pays $83 annual interest and has a...
An investor must choose between two bonds: Bond A pays $83 annual interest and has a market value of $750. It has 14 years to maturity. Bond B pays $95 annual interest and has a market value of $810. It has nine years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)    b....
Examine the following two bonds: Bond A's market value is $1,065, it pays an annual coupon...
Examine the following two bonds: Bond A's market value is $1,065, it pays an annual coupon of $70, and it will mature in 5 years, paying $1,000. The yield to maturity is 6 percent. Bond B's market value is $,1040, it pays an annual coupon of $60, and it will mature in 3 years, paying $1,000. The yield to maturity is 5 percent. Which of the bonds trades at a greater premium to its present value? ***Please show all work***
A bond has a coupon rate of 4.6% and pays coupons semi-annually. The bond matures in...
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
A coupon bond pays annual interest, has a par value of $1,000, matures in four years,...
A coupon bond pays annual interest, has a par value of $1,000, matures in four years, has a coupon rate of 10%, and has a yield to maturity of 12%. The current yield on this bond is
1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and...
1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and 16 years to maturity if the interested rate is 6%? 2) how much should you pay for a $1000 zero coupon bond with 5 years to maturity if the interest rate is 5%? 3) what is the rate of return for an investor who pays $1061 for a 3 year bond with an annual coupon payment of 6% and sells the bond 1 year...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT