Question

5a- Compute the yield to maturity for a zero coupon bond with a maturity of 14...

5a- Compute the yield to maturity for a zero coupon bond with a maturity of 14 years and a face value of $1000. The bond is selling for $519.52. (Assume annual discounting.) (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)

Answer:

5b- Compute the current yield on a bond with a yield to maturity of 10.3%, a par value of $1000, a coupon rate of 6.0% paid semi-annually, a remaining life of 18 years? (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34 and state as an annual rate.)

Answer:

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
1A) Compute the yield to maturity for a zero coupon bond with a maturity of 13...
1A) Compute the yield to maturity for a zero coupon bond with a maturity of 13 years and a face value of $1000. The bond is selling for $594.06. (Assume annual discounting.) (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34) 1B) Your business manager forwards the following information to you. Your businesses earned a real rate of return of 4.4% last year and inflation for the same period was 1.6%. What was your...
1A) Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in...
1A) Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in 18 years, has a coupon rate of 8.8% with semi-annual payments. The par value of the bond is $1000, while the current market value equals $653.08. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) 1B) How much would you pay for a zero coupon bond with a par value of $1000, a maturity of 5...
What is the current yield for a bond that has a coupon rate of 8.9% paid...
What is the current yield for a bond that has a coupon rate of 8.9% paid annually, a par value of $1000, and 25 years to maturity? Investors require a return of 12.5% from the bond. (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)
18. Compute the yield to maturity of a $2,500 par value bond with a coupon rate...
18. Compute the yield to maturity of a $2,500 par value bond with a coupon rate of 7.8% (quarterly payments - that is, four times per year) that matures in years. The bond is currently selling for $3,265 19. What is the yield to maturity of a $ par value bond with a coupon rate of 9.5% (semi-annual coupon payments) that matures in 28 years assuming the bond is currently selling for $838.137 par value 1000
You are looking at a 13-year zero-coupon bond that has a yield to maturity of 4.9%...
You are looking at a 13-year zero-coupon bond that has a yield to maturity of 4.9% . What is the value of the bond? Assume semi-annual compounding. What is the yield on a 19-year bond that pays a semi-annual coupon of 28 and sells for $1000. Answer as a percent.
1. A 9-year zero coupon bond has a yield to maturity of 11.8 percent, and a...
1. A 9-year zero coupon bond has a yield to maturity of 11.8 percent, and a par value of $1,000.  What is the price of the bond? 2. A 7-year bond has a 8 percent coupon rate with the interest paid in semi annual payments.  The yield to maturity of the bond is 2.3 percent, and a face value of $1,000.  What is the price of the bond? 3. A 12-year bond has a 9 percent annual coupon, a yield to maturity of...
Calculate the yield to maturity on the following bonds. a. A 8.7 percent coupon (paid semiannually)...
Calculate the yield to maturity on the following bonds. a. A 8.7 percent coupon (paid semiannually) bond, with a $1,000 face value and 11 years remaining to maturity. The bond is selling at $920. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))   Yield to maturity % per year   b. An 5.8 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $910. (Do...
Calculate the yield to maturity on the following bonds. a. A 8.2 percent coupon (paid semiannually)...
Calculate the yield to maturity on the following bonds. a. A 8.2 percent coupon (paid semiannually) bond, with a $1,000 face value and 22 years remaining to maturity. The bond is selling at $895. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))   Yield to maturity % per year   b. An 5.3 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $915. (Do...
Calculate the yield to maturity on the following bonds. a. A 9.5 percent coupon (paid semiannually)...
Calculate the yield to maturity on the following bonds. a. A 9.5 percent coupon (paid semiannually) bond, with a $1,000 face value and 20 years remaining to maturity. The bond is selling at $960. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) Yield to maturity % per year b. An 10 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $902. (Do...
1. Today, a bond has a coupon rate of 8.18 percent, par value of 1,000 dollars,...
1. Today, a bond has a coupon rate of 8.18 percent, par value of 1,000 dollars, YTM of 6 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond’s price was 1,022.04 dollars and the bond had 19 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 2....