Question

1. A 9-year zero coupon bond has a yield to maturity of

11.8 percent, and a par value of $1,000. What is the price of the bond?

2. A 7-year bond has a 8 percent coupon rate with the interest paid in semi annual payments. The yield to maturity of the bond is 2.3 percent, and a face value of $1,000. What is the price of the bond?

3. A 12-year bond has a 9 percent annual coupon, a yield to
maturity of

7.7 percent, and a face value of $1,000. What is the
price of the bond?

Answer #1

1.A 12-year bond has a 9 percent annual coupon, a yield to
maturity of
11.4 percent, and a face value of $1,000. What is the price of the
bond?
2.You just purchased a $1,000 par value, 9-year, 7 percent
annual coupon bond that pays interest on a semiannual basis. The
bond sells for $920. What is the bond’s nominal yield to
maturity?
a. 7.28%
b. 8.28%
c. 9.60%
d. 8.67%
e. 4.13%
f. None of
the above
3.A bond with...

You are purchasing a 20-year, zero-coupon bond. The annual yield
to maturity is 9.80 percent and the face value is $1,000. What is
the current market price? Assume (r) is bi-annual for compounding
purposes in case of zero-coupon bond.

1. Omega Enterprises has an 8% coupon bond with exactly 16 years
to maturity. Interest is paid semi-annually. The bond is priced at
$1,125 per $1,000 of face value. a.) What is the yield to maturity
on this bond? b.)An investor purchased the bond at $1,125 and sold
it 5 years later at a price of $1,023. What was the investor’s
return. (Hint: calculate the YTM as in a) above but use the sale
price as the future value.
2....

5a- Compute the yield to maturity for a zero coupon bond with a
maturity of 14 years and a face value of $1000. The bond is selling
for $519.52. (Assume annual discounting.) (Round to 100th of a
percent and enter as a percentage, e.g. 12.34% as 12.34)
Answer:
5b- Compute the current yield on a bond with a yield to maturity
of 10.3%, a par value of $1000, a coupon rate of 6.0% paid
semi-annually, a remaining life of 18...

You are purchasing a 30-year, zero-coupon bond. The yield to
maturity is 8.68 percent and the face value is $1,000. What is the
current market price?

You are looking at a 13-year zero-coupon bond that has a yield
to maturity of 4.9% . What is the value of the bond? Assume
semi-annual compounding.
What is the yield on a 19-year bond that pays a semi-annual
coupon of 28 and sells for $1000. Answer as a percent.

Gugenheim, Inc. offers a 7 percent coupon bond with annual
payments. The yield to maturity is 8.3 percent and the maturity
date is 7 years. What is the market price of a $1,000 face value
bond?
A $1000 face value bond has two years left to maturity, 5.6%
coupon rate with annual coupons, and is currently trading at $915.
What is the YTM on this bond?

The yield to maturity of a one year zero coupon bond is 4 % p.
a. and the yield to maturity for a two year zero coupon bond is 5 %
p. a. If the par value of a 10% coupon bond (coupons paid annually)
is $1,000 and it matures in two years its price will be:"
"$1,093.89 "
"$1,078.92 "
"$1,068.23 "
"$1,055.12 "

A 5 percent coupon bond has 20 years left to maturity and has a
price quote of 95 (quoted bond price is $950). The bond can be
called in five years and if called would generate a yield to call
of 8 percent. Compute the bond's current yield, yield to maturity
and call price. (Assume interest payments are paid semi-annually
and a par value of $1,000.)

A 5 percent coupon bond has 20 years left to maturity and has a
price quote of 95 (quoted bond price is $950). The bond can be
called in five years and if called would generate a yield to call
of 8 percent. Compute the bond's current yield, yield to maturity
and call price. (Assume interest payments are paid semi-annually
and a par value of $1,000.)

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