Question

Fifteen years ago, Namson and Co. issued 25-year coupon bonds. The yield to maturity at the time of issuance was 10 percent and the bonds sold at 120% of par value. The bonds are currently selling at 85% of par value. What is the current yield to maturity for these bonds? [Assume that the coupon is paid annually]. (Round your answer to 2 decimal places and record as a percent but without a percent sign. For example, record 18.3893 8.47 % as 18.39).

Answer #1

K = N |

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k] + Par value/(1 + YTM)^N |

k=1 |

K =25 |

1200 =∑ [(Coupon rate*1000/100)/(1 + 10/100)^k] + 1000/(1 + 10/100)^25 |

k=1 |

Coupon rate% = 12.2 |

K = N |

Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k] + Par value/(1 + YTM)^N |

k=1 |

K =10 |

850 =∑ [(12.2*1000/100)/(1 + YTM/100)^k] + 1000/(1 + YTM/100)^10 |

k=1 |

YTM% = 15.21 |

The Chef Co. issued 15-year bonds one year ago today. The coupon
rate of the bonds was 4.8% and the bonds make semi-annual coupon
payments. The Yield-To-Maturity of these bonds is currently
5.3%.
Required: Calculate the current dollar price assuming a $1,000
par value.

6) Five years ago, UMPI Corporation issued a 10% coupon (paid
annually), 25-year, AA bond at its par value of $1,000. Currently,
the yield to maturity on these bonds is 12%. Calculate the price of
the bond today.

1. West Corp. issued 15-year bonds two years ago at a coupon
rate of 8.2 percent. The bonds make semiannual payments. If these
bonds currently sell for 103 percent of par value, what is the YTM?
(Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
YTM = %
2.
Even though most corporate bonds in the United States make coupon
payments semiannually, bonds issued elsewhere often have annual
coupon payments....

One year ago, XYZ Co. issued 15-year bonds at par. The bonds
have a coupon rate of 4.81 percent, paid semiannually, and a face
value of $1,000. Today, the market yield on these bonds is 4.27
percent. What is the percentage change in the bond price
over the past year?
Answer to two
decimals.

One year ago, XYZ Co. issued 19-year bonds at par. The bonds
have a coupon rate of 6.23 percent, paid semiannually, and a face
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past year? Answer to two decimals

Twelve years ago (NPC) issued fifteen year 7.0% semi annual
coupon bonds each with a $1000 face value. Since then, interest
rates have generally fallen and the yield to maturity on the NPC
bonds is now 5.7%. What is the price today of the NPC bond?
Work by hand no financial calculator

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bonds that were priced with a market's required yield to maturity
of 11 percent and a par value of $1,000. What did these bonds sell
for when they were issued? Now that 6 years have passed and the
market's required yield to maturity on these bonds has climbed to
13 percent, what are they selling for? If the market's required
yield to maturity had fallen to 9 percent, what would they...

Braemar Corp. issued 30 year bonds 2 years ago at a coupon rate
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Chubb Co. issued 8-year bonds two years ago at a coupon rate of
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