Question

IBM has just issued a callable (at par) 10 year, 6% coupon bond with quarterly coupon payments. The bond can be called at par in two year or anytime thereafter on a coupon payment date. It has a price of $97 per $100 face value. What is the bond’s yield to maturity? What is the bond's yield to call?

Answer #1

General Electric has just issued a callable (at par) 10-year,
5.7 % coupon bond with annual coupon payments. The bond can be
called at par in one year or anytime thereafter on a coupon payment
date. It has a price of $ 102.18.
a. What is the bond's yield to maturity?
b. What is its yield to call?
c. What is its yield to worst?

Boeing Corporation has just issued a callable (at par)
three-year, 4.9 % coupon bond with semi-annual coupon payments.
The bond can be called at par in two years or anytime thereafter on
a coupon payment date. It has a price of $ 98.56
a. What is the bond's yield to maturity?
b. What is its yield to call?
c. What is its yield to worst?

Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments. The bond
can be called at par in three years or anytime thereafter on a
coupon payment date. If the bond is currently trading for $950.00,
then its yield to maturity is closest to:
Select one:
A. 6.5%
B. 6.18%
C. 6.0%
D. 6.8%
Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments....

Suppose your firm just issued a callable (at par) three-year, 5%
coupon bond with semiannual coupon payments. The bond can be called
at par in two years or anytime thereafter on a coupon payment date.
It is currently priced at 99% of par. What is the bond’s yield to
maturity and yield to call?
You own a convertible bond with a face value of $1000 and a
conversion ratio of 45. What is the conversion price?
Suppose a firm with...

What is the price of a $1000 face value zero-coupon bond with 4
years to maturity if the required return on these bonds is 3%?
Consider a bond with par value of $1000, 25 years left to
maturity, and a coupon rate of 6.4% paid annually. If the yield to
maturity on these bonds is 7.5%, what is the current bond
price?
One year ago, your firm issued 14-year bonds with a coupon rate
of 6.9%. The bonds make semiannual...

Callable bond. Corso Books has just sold a callable bond. It is
a thirty-year quarterly bond with an annual coupon rate of 5% and
$5,000 par value. The issuer, however, can call the bond starting
at the end of 10 years. If the yield to call on this bond is 7%
and the call requires Corso Books to pay one year of additional
interest at the call (4 coupon payments), what is the bond price
if priced with the assumption...

Corso Books has just sold a callable bond. It is a thirty-year
quarterly bond with an annual coupon rate of 5% and $1,000 par
value. The issuer, however, can call the bond starting at the end
of 5 years. If the yield to call on this bond is 7% and the call
requires Corso Books to pay one year of additional interest at the
call (12 coupon payments), what is the bond price if priced with
the assumption that the...

Corso Books has just sold a callable bond. It is a thirty-year
quarterly bond with an annual coupon rate of 10% and $1000 par
value. The issuer, however, can call the bond starting at the end
of 8 years. If the yield to call on this bond is 9% and the call
requires Corso Books to pay one year of additional interest at the
call (4 coupon payments), what is the bond price if priced with
the assumption that the...

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...

In Excel with formulas--
A 10-year, 12 % semiannual coupon bond with a par value of
$1,000 may be called in 7 years, at a call price of $1,100. The
bond sells for $1,500. (Assume the bond has just been
issued).
a. What is the bond’s yields to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield in the first
year?
d. What is the bond’s yield to call?

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