Question

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:**

Answer #1

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 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 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 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

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) 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) 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) 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, 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....

Calculate the yield to maturity on the following bonds.
a.
A 8.6 percent coupon (paid semiannually) bond, with a $1,000
face value and 10 years remaining to maturity. The bond is selling
at $915. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to maturity
% per year
b.
An 5.7 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$911. (Do...

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