Question

a
company’s bond’s have a face value of 1,000. these bonds carry a 6%
coupon, pay interest semi annually and mature in 12 yrs: what is
the current vslue of these bonds if the yield to maturity is
8.16%?

Answer #1

Face value=$1000

Annual coupon rate=6%, as the interest is paid semiannually, the
semiannual coupon rate=6%/2=3%

Semiannual coupon payment=Semiannual coupon rate*Face
value=3%*$1000=$30

Annual yield to maturity is 8.16%, semiannual yield to
maturity=8.16%/2=4.08%

Maturity period=12, as the interest is paid semiannually, total
number of periods=12*2=24

We will use these value and calculate the present value of the bond
using excel.

As the present value is a cash outflow, it is shown with a negative sign in excel.

2. A company’s bonds currently sell for $1,200. The bonds have a
6-year maturity, a 6% coupon paid semi-annually, and a par value of
$1,000. What is the bond’s current yield?

The $1,000 face value bonds of Country Home, Inc. have coupon of
5.0 percent and pay interest semiannually. Currently, the bonds are
quoted at 112.15 and mature in 15 years. What is the yield to
maturity?

new markets has 1,000 face value bonds outstanding that pay
interest semi annually, mature in 14.5 years and have a 4.50%
coupon. the current price is quoted at 97.60% of par. what is the
yield to maturity? Please show step by step how to solve using
financial calculator, BA 2 plus.

Patch Inc. has $1,000 face value bonds outstanding. These bonds
pay interest semiannually, mature in 6 years, and have a 9 percent
coupon. The current price is $1,110. What is the yield to maturity?
6.74 percent 7.90 percent 4.39 percent 3.37 percent

WTA bonds have a 5.80% coupon rate and paid annually. The face
value is $1,000 and the current market price is $975. The bonds
mature in 16 years. What is the yield to maturity?

A bond has $1,000 face value, coupon rate of 3.5%, and yield to
maturity (YTM) of 3.7%. It will mature in 16 years and the interest
rate will compound annually. What is this bond’s current yield?

The bonds of Microhard, Inc. carry a 10% annual coupon, have a
$1,000 face value, and mature in 4 years. They are selling for
$1,102. What is the market rate of interest on comparable
bonds?

Bonita Limited has bonds outstanding that will mature in 6
years. The bonds have a face value of $1,000. The bonds pay
interest semi-annually and have a coupon rate of 4.6 percent. If
the bonds are currently selling at $899.68.
What is the yield to maturity that an investor who buys them
today can expect to earn? (Round answer to 1 decimal
place, e.g. 5.2%.)
Yield to maturity% __________________
What is the effective annual yield? (Round answer to
2 decimal...

CAN YOU PLEASE DO THESE IN EXCEL
Global Trade, Inc. has $1,000 face value bonds outstanding with
a market price of $1,013. The bonds pay interest annually, mature
in 11 years, and have a yield to maturity of 5.34 percent. What is
the current yield?
5.39 percent
5.43 percent
5.50 percent
5.61 percent
5.77 percent
Best Lodging has $1,000 face value bonds outstanding. These
bonds pay interest semiannually, mature in 5 years, and have a 6
percent coupon. The current...

The Potomac Company’s bonds have a face value of $1,000, will
mature in 20 years, and carry a coupon rate of 8 percent. Assume
interest payments are made semiannually. (a) Determine the present
value of the bond’s cash flows if the required rate of return is 15
percent. (b) Determine the present value of the bond’s cash flows
if the required rate of return is 18 percent. (c) Is there a change
in the present value in the above two...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 19 minutes ago

asked 19 minutes ago

asked 27 minutes ago

asked 33 minutes ago

asked 36 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago