Question

Stealers Wheel Software has 8 percent coupon bond on the market with 10 years to maturity, and the par value of $1,000. The bonds make semi-annual coupon payments and currently sell for $980. What is the YTM? If the bond with the same maturity and similar risk pays 6% annual coupon (pays semi-annually), what should be the market price of the second bond?

Answer #1

Goldman Software has 9.2 percent coupon bonds on the market with
18 years to maturity. The bonds make semi-annual payments and
currently sell for 107.4 percent of par.
What is current yield on bonds?
What is the YTM ?
What is the Effective Annual Yield?

Workman Software has 4.1 percent coupon bonds on the market with
14 years to maturity. The bonds make semiannual payments and
currently sell for 91.57 percent of par. What is the YTM?
What is the effective annual yield (i.e., EAY or EAR)?

Workman Software has 6.6 percent coupon bonds on the market with
11 years to maturity. The bonds make semiannual payments and
currently sell for 87.8 percent of par. a. What is the current
yield on the bonds? b. The YTM? c. The effective annual yield?

Workman software has 9.6 percent coupon bonds on the market with
18 years to maturity. The bonds make semiannual payments and
currently sell for 123.3 percent of par.
a. what is the current yield on the bonds?
b. The YTM?
c. The effective annual yield?

Workman Software has 6.6 percent coupon bonds on the market with
8 years to maturity. The bonds make semiannual payments and
currently sell for 83.6 percent of par.
a.
What is the current yield on the bonds?
8.79%
8.29%
0.18%
7.89%
b.
The YTM?
7.10%
4.79%
9.77%
9.59%
c.
The effective annual yield?
10.31%
0.08%
9.56%
9.82%

Xpert Software has 7.0 percent coupon bonds on the market with
11 years to maturity. The bonds make semiannual payments and
currently sell for 90.3 percent of par. The YTM is ……………………
percent

Workman Software has 7.4 percent coupon bonds on the market with
8 years to maturity. The bonds make semiannual payments and
currently sell for 95.1 percent of par.
a.
What is the current yield on the bonds?
7.78%
8.17%
8.67%
0.18%
0.08%
b.
The YTM?
8.24%
4.12%
7.90%
8.42%
8.11%
c.
The effective annual yield?
8.41%
8.83%
8.21%
0.08%
7.99%

Bourdon Software has 6.7 percent coupon bonds on the market with
18 years to maturity. The bonds make semiannual payments and
currently sell for 105 percent of par.
What is the effective annual yield? (round 2 decimal places)

One More Time Software has 8.4 percent coupon bonds on the
market with 16 years to maturity. The bonds make semiannual
payments and currently sell for 81.5 percent of par.
(a) What is the current yield on the bonds?
(b) The YTM?
(c) The effective annual yield?

1) Caribbean Reef Software has 8.4 percent coupon bonds on the
market with 9 years to maturity. The bonds make semiannual payments
and currently sell for 95.5 percent of par. What is the YTM?
2) Suppose that General Motors Acceptance Corporation issued a
bond with 10 years until maturity, a face value of $1000, and a
coupon rate of 7% (annual payments). The yield to maturity on this
bond when it was issued was 6%. Assuming the yield to maturity...

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