Question

A $8,500 bond has a coupon rate of 7.25% compounded semi-annually and 7 years until maturity....

A $8,500 bond has a coupon rate of 7.25% compounded semi-annually and 7 years until maturity. What is the yield to maturity if the bond is purchased at $8,563.75? ___% Round to two decimal places

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A 7 year maturity corporate bond has coupon rate of 7% and pays coupon semi-annually. Considering...
A 7 year maturity corporate bond has coupon rate of 7% and pays coupon semi-annually. Considering Par value of $1000, what would be the bond price if Effective Annual Yield is 10%? Please explain all steps, Thanks!
Helen purchased a $1,500 bond that was paying a coupon rate of 5.20% compounded semi-annually and...
Helen purchased a $1,500 bond that was paying a coupon rate of 5.20% compounded semi-annually and had 5 more years to mature. The yield at the time of purchase was 6.70% compounded semi-annually. a. How much did Helen pay for the bond? Round to the nearest cent b. What was the amount of premium or discount on the bond? (click to select)PremiumDiscount amount was Round to the nearest cent
Lionel purchased a $5,000 bond that was paying a coupon rate of 4.40% compounded semi-annually and...
Lionel purchased a $5,000 bond that was paying a coupon rate of 4.40% compounded semi-annually and had 8 more years to mature. The yield at the time of purchase was 5.80% compounded semi-annually. a. How much did Lionel pay for the bond? Round to the nearest cent b. What was the amount of premium or discount on the bond? (click to select)Premium or Discount amount was ____ Round to the nearest cent
What is the price of a bond with a coupon rate of 7%, payable semi-annually, a...
What is the price of a bond with a coupon rate of 7%, payable semi-annually, a face value of $1000, 8 years to maturity, and a yield to maturity of 7.7%?
A bond with a $1,600 face value and 13 years remaining until maturity pays a coupon...
A bond with a $1,600 face value and 13 years remaining until maturity pays a coupon rate of 8.25% compounded semi-annually. Calculate the yield to maturity if the bond is priced at $1,280.
A $85,000 bond with a coupon rate of 7.00%, payable semi-annually, is redeemable in 12.5 years....
A $85,000 bond with a coupon rate of 7.00%, payable semi-annually, is redeemable in 12.5 years. What was the purchase price of the bond, when the yield rate was 5.00% compounded semi-annually? Round to the nearest cent
Assume a corporation's bond has 15 years remaining until maturity. The coupon interest rate is 9.4%...
Assume a corporation's bond has 15 years remaining until maturity. The coupon interest rate is 9.4% and the bond pays interest semi-annually. Assume bond investors' required rate of return on the bond is 9.7%. What would be the expected market price of this bond. (Assume a $1000 par value.) Answer to 2 decimal places.
A semi-annual coupon bond with 2 years to maturity and 8% per annum coupon rate has...
A semi-annual coupon bond with 2 years to maturity and 8% per annum coupon rate has a face value of $1,000 with a yield to maturity of 12% per annum (compounded semi-annually). Using the bond’s modified duration, estimate the new bond price when the yield to maturity immediately changes from 12% per annum to 8% per annum. Select one: a. 66.27 dollars.   b. 996.97 dollars. c. 930.70 dollars. d. 864.43 dollars. e. None of the statements is true.
A bond has a PAR value of $1,000 with a 12% coupon and a 4% semi-annually...
A bond has a PAR value of $1,000 with a 12% coupon and a 4% semi-annually compounded yield. What is the bond's duration given that there are two years left to maturity?
A bond has a PAR value of $1,000 with a 12% coupon and a 4% semi-annually...
A bond has a PAR value of $1,000 with a 12% coupon and a 4% semi-annually compounded yield. What is the bond’s duration given that there are two years left to maturity?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT