Question

2.Blue Corp has 10 years $1000 par value bonds with an 8.5% annual coupon oustanding. The bonds can be called in 5 years at $1035. If the yield to call is 6.5%,

What is the current year yield and the yield to maturity of the bonds today ?

Answer #1

A 25 year, $1000 par value bond has an 8.5% annual payment
coupon. The bond currently sells for $790. If the yield to maturity
remains at its current rate, what will the price be 5 years from
now?

Yield to maturity Moe’s Inc. has bonds outstanding with a par
value of $1000 and 10 years to maturity. These bonds pay a coupon
of $45 every six months. Current market conditions are such that
the bond sells for $938. Calculate the yield to maturity on the
issue.
Duration A newly issued 5-year Altec Corp. bond has a price of
$1,095.99, a par value of $1,000, and pays annual interest at a 12%
coupon rate. Find the duration of the...

A 6% annual coupon bond has 11 years remaining until maturity.
Par value is $1000.
The required rate of return (yield to maturity)on the bond is
8.5%.
Compute the price of the bond today using the appropriate Excel
formula
Compute the price of the same bond if it has 10 years remaining
to maturity instead of 11.
What is the capital gains yield on the bond?
What is the current yield on the bond?
What is the total yield on...

What is the price of a $1000 face value zero-coupon bond with 4
years to maturity if the required return on these bonds is 3%?
Consider a bond with par value of $1000, 25 years left to
maturity, and a coupon rate of 6.4% paid annually. If the yield to
maturity on these bonds is 7.5%, what is the current bond
price?
One year ago, your firm issued 14-year bonds with a coupon rate
of 6.9%. The bonds make semiannual...

ABC
Co. bonds have a term to maturity of 15 years, callable, 8%
semi-annual coupon bonds at their par value of $1000. the bond is
selling for $925 today. the call price is $1080. if the bond is
expected to be called in 5 years, how much is the yield to
call?

QUESTION 17
Burns Power’s $1000 par value, semi-annual coupon bonds
currently have a yield to maturity of 5.6%. These bonds have a 6.8%
annual coupon rate and mature in 13 years. Also, these bonds could
be called in 3 years at a price of $1045.
What is the yield to call for these bonds?
a.
5.60%
b.
6.80%
c.
4.98%
d.
4.28%
e.
4.19%

Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments. The bond
can be called at par in three years or anytime thereafter on a
coupon payment date. If the bond is currently trading for $950.00,
then its yield to maturity is closest to:
Select one:
A. 6.5%
B. 6.18%
C. 6.0%
D. 6.8%
Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments....

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The
bond currently sells for $875. If the yield to maturity remains at
its current rate, what will the price be 5 years from now?

A bond with 1000 par value, has 14 years left to maturity has a
coupon rate of 10% with semi-annual coupon payments. The current
yield to maturity is 11.5%. What is the current yield?
12.78%
11.15%
11.95%
13.64%
14.51%

Your company currently has $ 1000 par, 6.5 % coupon bonds with
10 years to maturity and a price of $ 1,080. If you want to issue
new 10-year coupon bonds at par, what coupon rate do you need to
set? Assume that for both bonds, the next coupon payment is due in
exactly six months.
You need to set a coupon rate of _____%

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