Question

A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at a yield of 6%. What would be it’s price?

Answer #1

Information provided:

Par value= future value= $1,000

Coupon rate= 4%/2= 2%

Coupon payment= 0.02*1,000= $20

Time= 15 years*2= 30 semi-annual periods

Yield to maturity= 6%/2= 3% per semi-annual period

The price of the bond is calculated by computing the present value.

The present value is computed by entering the below in a financial calculator:

FV= 1,000

PMT= 20

N= 30

I/Y= 3

Press the CPT key and PV to compute the present value.

The value obtained is 803.9956.

Therefore, the price of the bond is **$804.**

In case of any query, kindly comment on the solution.

#10 A $1,000 par bond with a 8% semi-annual coupon trades at a
price of $1,288. If the bond has 10 years to maturity, what is the
yield to maturity?
A. 5.58%
B. 4.41%
C. 8.9%
D. 4.38%

You find a $1,000 par bond with a 3.5% semi-annual coupon and 13
years to maturity. If the bond trades at a yield of 6.23%, what
should be its current price?

Q3) What is the price of a $1,000 par value, semi-annual coupon
bond with 15 years to maturity, a coupon rate of 03.60% and a
yield-to-maturity of 08.70%? (1 point)

You purchased a $1,000 bond with a 4.6% semi-annual coupon and
15 years to maturity six years ago at a price of $855. If the yield
has remained constant, what should be the price of the bond
today?
A. $959.46
B. $592.55
C. $900.24
D. $898.05

A bond with a $1,000 par, 6 years to maturity, a coupon rate of
4%, and annual payments has a yield to maturity of 4.3%. What will
be the actual percentage change in the bond price if the yield
changes instantaneously to 5.5%? (If your answer is, e.g., 1.123%,
enter it as 1.123.)

A bond with a $1,000 par, 7 years to maturity, a coupon rate of
4%, and annual payments has a yield to maturity of 4%. What will be
the actual percentage change in the bond price if the yield changes
instantaneously to 5.5%? (If your answer is, e.g., 1.123%, enter it
as 1.123.)

A bond has an 8.2 percent coupon (and makes semi-annual coupon
payments), a $1,000 par value, matures in 12.5 years, and is priced
to provide a yield to maturity of 7.00 percent.
What is the current yield?

A 6% coupon bond Which face value $1000, Maturity of five years
and paying semi-annual coupon payment sales of $1050
A) What is yield to maturity.
b) what would happen if yield to maturity if it’s price suddenly
falls to $900.

PART 2 - BOND CALCULATIONS
a) What is the price of a $1,000 par value, semi-annual coupon
bond with 16 years to maturity, a coupon rate of 5.40% and a
yield-to-maturity of 5.90%?
b) What is the price of a $1,000 par value, 10 year, annual
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5.50%
c) A 10-year, 6.30% semi-annual coupon bond today and the
current market rate of return is 5.60%. The bond is...

Consider the following semi-annual coupon bond: $1,000 par
value; 5 years until maturity; 7% coupon rate; YTM of 6%. Calculate
the bond’s price today. NOTE: This is a coupon bond.
Please show all work

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