Question

What is the approximate yield-to-call on a bond with a $1000 par value, a nominal yield...

What is the approximate yield-to-call on a bond with a $1000 par value, a nominal yield of 5% and a current price of $950 if it is called in 4 years

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Price the following: 12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM)...
Price the following: 12-year, $1000 par value, 6% semi-annual coupon bond whose current nominal yield-to-maturity (YTM) is 8%. 10-year, $1000 par value, 8% quarterly coupon bond whose current nominal YTM is 7%. 30-year, $1000 par value, zero-coupon bond whose current nominal YTM is 9.5%. 13-year, $1000 par value, 8% monthly coupon bond whose current nominal YTM is 10%. 5-year, $500 par value, 8% semi-annual coupon bond whose current nominal YTM is 8.25%
A 14-year, 14% semiannual coupon bond with a par value of $1000 may be called in...
A 14-year, 14% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1030. The bond sells for $1150 (assume the bond has just been issued). a. What is the bond's yield to maturity? b. What is the bond's current yield? c. What is the bond's capital gain or loss yield? d. What is the bond's yield to call?
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in...
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,255.00. The bond sells for $950.50. (Assume that the bond has just been issued.). What is it’s yield to maturity?
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments and a $1000 par value. the bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. what is the bonds nominal yield to call?
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
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...
A bond has a par value of $1000, a time to maturity of 12 years and...
A bond has a par value of $1000, a time to maturity of 12 years and a coupon rate of 6% with interest paid annually. If the current market price is $925, what will be the approximate capital gain yield of this bond over the next year if its yield to maturity remains unchanged? Answer in percentages with two decimal places
Rocky Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual...
Rocky Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual payments, and a $1,000 par value.  The bond has a 5% nominal yield to maturity, but it can be called in 5 years at a price of $1,120.  What is the bond’s nominal yield to call? ?
Shimo Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual...
Shimo Industries has a bond outstanding with 15 years to maturity, and 7% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 5% nominal yield to maturity, but it can be called in 5 years at a price of $1,120. What is the bond’s nominal yield to call? Show work.
An investor is considering the purchase of a $1000 par value bond with an 8% coupon...
An investor is considering the purchase of a $1000 par value bond with an 8% coupon rate (with interest paid semiannually) that matures in 5 years. If the bond is priced to yield 6%. What is the bonds current price?
6 years ago you bought a bond with a par value of $1000 for $950. The...
6 years ago you bought a bond with a par value of $1000 for $950. The bond has a coupon rate of 5%. You purchased the bond for $950. You collected the first coupon five years ago and you reinvested it at a rate of 5%. The coupon you collected four years ago was reinvested at 6%. The one you collected three years ago was reinvested at 3%. The coupons collected two years ago and last year were not invested....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT