Question

(Yield to maturity) The market price is $775 for a 16-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?

Answer #1

Given that the face value of the bond is $1000, present value is
$775 and the time to maturity is 16 years.

As the coupon interest is paid semiannually, the total number of
periods=16*2=32

Semiannual coupon rate is 5.5%

The semiannual coupon payment=(Semiannual coupon rate)*(Face value
of the bond)=5.5%*$1000=$55

Now, we can calculate the yield to maturity using excel.

The semiannual yield to maturity is 7.34%. So, the annual yield to maturity is 7.34%*2=14.68%

Note: As the present value is a cash outflow, we have taken it as negative in excel.

The market price is $775 for a 20-year bond ($1,000 par
value) that pays 11 percent annual interest, but makes interest
payments on a semiannual basis (5.5 percent semiannually). What
is the bond's yield to maturity?
A. The bond's yield to maturity is (?) %.

??(Yield to?
maturity)?The market price is $ 700 for a 10 year
bond ($1,000 par value) that pays 9 percent annual interest, but
makes interest payments on a semiannual basis
?(4.5 percent semiannually). What is the? bond's yield to?
maturity?
The? bond's yield to maturity is___% (Round to two decimal
places.)

The market price is $725 for a 14-year bond ($1000 par
value) that pays 11 percent annual interest, but makes interest
payments on a semiannual basis (5.5 percent semiannually). What
is the bond's yield to maturity?

The market price is $1,050 for a 9 -year bond ($1,000 par value)
that pays 9 percent annual interest, but makes interest payments on
a semiannual basis (4.5 percent semiannually). What is the bond's
yield to maturity?

The market price is $725 for a 12 -year bond ($1,000 par
value) that pays 12 percent annual interest, but makes interest
payments on a semiannual basis (6 percent semiannually). What is
the bond's yield to maturity?
The bond's yield to maturity is?.
(Round to two decimal places.)

(Related to Checkpoint 9.2) (Yield to maturity) The market
price is $750 for a 17-year bond ($1,000 par value) that pays
12 percent annual interest, but makes interest payments on a
semiannual basis (6 percent semiannually). What is the bond's
yield to maturity?

The market price is $543 for a 10-year bond ($1,000 par value)
that pays 8 % annual interest, but makes interest payments on a
semiannual basis (4% semiannually). What is the bond’s yield to
maturity?

The market price is $585 for a 10-year bond ($1,000 par value)
that pays 8 % annual interest, but makes interest payments on a
semiannual basis (4% semiannually). What is the bond’s yield to
maturity?
Clearly show which EQUATIONS could be used to solve the
problem mathematically
Indicate the detailed steps on how to use FINANCIAL
CALCULATOR or Equations from the Textbook to solve the
problems.

A bond's market price is $850. It has a $1,000 par value,
will mature in 6 years, and has a coupon interest rate of 8
percent annual interest, but makes its interest payments
semiannually.
What is the bond's yield to maturity?
What happens to the bond's yield to maturity if the bond
matures in 12 years?
What if it matures in 3 years?

A bond's market price is $925. It has a $1,000 par value, will
mature in 10 years, and has a coupon interest rate of 9 percent
annual interest, but makes its interest payments semiannually. What
is the bind's yield to maturity? What happens to the bond's yield
to maturity if the bond matures in 20 years? What if it matures in
5 years?
The bond's yield to maturity if it matures in 10 years is ___%
(round to two decimal...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 13 minutes ago

asked 22 minutes ago

asked 36 minutes ago

asked 50 minutes ago

asked 50 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago