Question

Braemar Corp. issued 30 year bonds 2 years ago at a coupon rate of 7.1%. The bond makes semi annual payments. If these bonds currently sell for 105% of par/face value, what is the yield to maturity?

Answer #1

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N = 28 * 2 = 56 (The Bond is for 30 years, as it was issued 2 years ago, so now 28 years left. The payment is semiannual, so multiplied by 2)

PV = 1050 (The present value of the bond is 105% of Face value, that is considered to be 1000. So 1050)

PMT => 7.1% of 1,000 = 71 / 2 = -35.5 ( The coupon 7.1% is on Face Value, as it is semiannual, so divided by 2)

FV = -1,000 (The Face value of bond is $1,000)

CPT + I/Y = 3.3510

The semiannual YTM is 3.3510, so the annual will be 3.3510*2 = 6.702%

The YTM of the bond is 6.702%

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Braemar Corp. issued 30 year bonds 2 years ago at a coupon rate
of 7.1%. The bond makes semi annual payments. If these bonds
currently sell for 105% of par/face value, what is the yield to
maturity.

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Heginbotham Corp. issued 20-year bonds two years ago at a coupon
rate of 5.3 percent. The bonds make semiannual payments. If these
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YTM?

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....

West Corp. issued 14-year bonds 2 years ago at a coupon rate of
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West Corp. issued 16-year bonds 2 years ago at a coupon rate of
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percent.

3.Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate
of 9.2 percent. The bonds make semiannual payments. If these bonds
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Watters Umbrella Corp. issued 10-year bonds 2 years ago at a
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Group of answer choices
8.73%
11.64%
9.70%
10.67%
4.85%

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