Question

A bond has five years to​ maturity, a $ 2,000 face​ value, and a 5.5​% coupon...

A bond has five years to​ maturity, a $ 2,000 face​ value, and a 5.5​% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $ 1,671​?

A. 11.79​%

B. 9.82​%

C. 7.86​%

D. 13.75​%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An semi-annual coupon bond with a $2,000 face value matures in 4 years. The bond currently...
An semi-annual coupon bond with a $2,000 face value matures in 4 years. The bond currently sells for $1627.412 and has a 12 percent yield to maturity. What is the bond’s nominal coupon rate?
a bond has a face value of $1000 and 14 years until maturity. the bond has...
a bond has a face value of $1000 and 14 years until maturity. the bond has a 3% APR coupon with semi- annual coupon payments. currently, investors seek a 6% APR yield to maturity to hold the bond. what is the current trading price of the bond?
An investor buys a bond that has a 5-year life, an annual coupon rate of 5.5%,...
An investor buys a bond that has a 5-year life, an annual coupon rate of 5.5%, and is currently trading at a Yield to Maturity of 5.5%. The coupons are paid semi-annually, and the bond has a par value of $1,000. After holding the bond for 1-year, the bonds Yield to Maturity has decreased from 5.5% to 4.0%. Assume that the investor has received a full year of coupon payments. What is this investors Rate of Return from this investment?...
A bond has a face value of $1000 with a time to maturity ten years from...
A bond has a face value of $1000 with a time to maturity ten years from now. The yield to maturity of the bond now is 10%. a) What is the price of the bond today, if it pays no coupons? b) What is the price of the bond if it pays annual coupons of 8%? c) What is the price today if pays 8% coupon rate semi-annually?
bond has $1,000 face value, 25 years to maturity, 3.6% annual coupon rate. The bond’s current...
bond has $1,000 face value, 25 years to maturity, 3.6% annual coupon rate. The bond’s current price is $948.92. Assuming the bond pays coupons semiannually, what is the bond’s yield to maturity (YTM)?
ABC has a bond trading on the secondary market with a time to maturity of five...
ABC has a bond trading on the secondary market with a time to maturity of five years. The bond pays a semi-annual coupon and has a coupon rate of 7.6%. The bonds currently trade at $850 and have a face value of $1,000. What is the yield to maturity? (express as an APR)
Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is...
Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 8.3 percent and the maturity date is 7 years. What is the market price of a $1,000 face value bond? A $1000 face value bond has two years left to maturity, 5.6% coupon rate with annual coupons, and is currently trading at $915. What is the YTM on this bond?
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...
The U.S. Treasury has just issued a five-year, $1000 (face value) bond with a coupon rate...
The U.S. Treasury has just issued a five-year, $1000 (face value) bond with a coupon rate of 5% and paying semi-annual coupons. The bond is currently trading at 957.35. Calculate the YTM on the bond. NOTE: This is a coupon bond. Please show all work
What is the yield to maturity of a five​-year, $ 5,000 bond with a 4.5​% coupon...
What is the yield to maturity of a five​-year, $ 5,000 bond with a 4.5​% coupon rate and semiannual coupons if this bond is currently trading for a price of $ 4, 814​? A. 7.5​% B. 2.68​% C. 6.43​% D. 5.36​%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT