Question

General Electric has just issued a callable (at par) 10-year, 5.7 % coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $ 102.18.

a. What is the bond's yield to maturity?

b. What is its yield to call?

c. What is its yield to worst?

Answer #1

**ANSWER IN THE IMAGE((YELLOW HIGHLIGHTED). FEEL FREE TO
ASK ANY DOUBTS. THUMBS UP PLEASE.**

**A.**

**b.**

**since bond can be called any time after year 1, its
no.of years is taken as 1.**

C.

since it will have worst yiels if its called at year 1 and then the yield increases as time increases.

its ytw=3.44%

Boeing Corporation has just issued a callable (at par)
three-year, 4.9 % coupon bond with semi-annual coupon payments.
The bond can be called at par in two years or anytime thereafter on
a coupon payment date. It has a price of $ 98.56
a. What is the bond's yield to maturity?
b. What is its yield to call?
c. What is its yield to worst?

IBM has just issued a callable (at par) 10 year, 6% coupon bond
with quarterly coupon payments. The bond can be called at par in
two year or anytime thereafter on a coupon payment date. It has a
price of $97 per $100 face value. What is the bond’s yield to
maturity? What is the bond's yield to call?

Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments. The bond
can be called at par in three years or anytime thereafter on a
coupon payment date. If the bond is currently trading for $950.00,
then its yield to maturity is closest to:
Select one:
A. 6.5%
B. 6.18%
C. 6.0%
D. 6.8%
Redd Industries has just issued a callable, $1000 par value,
five-year, 5% coupon bond with semiannual coupon payments....

Suppose your firm just issued a callable (at par) three-year, 5%
coupon bond with semiannual coupon payments. The bond can be called
at par in two years or anytime thereafter on a coupon payment date.
It is currently priced at 99% of par. What is the bond’s yield to
maturity and yield to call?
You own a convertible bond with a face value of $1000 and a
conversion ratio of 45. What is the conversion price?
Suppose a firm with...

A 20-year, 8% annual coupon bond
with a par value of $1,000 may be called in 5 years at a call price
of $1,040. The bond sells for $1,100. (Assume that the bond has
just been issued.)
Basic Input Data:
Years to maturity:
20
Periods
per year:
1
Periods
to maturity:
20
Coupon
rate:
8%
Par
value:
$1,000
Periodic
payment:
$80
Current
price
$1,100
Call
price:
$1,040
Years
till callable:
5
Periods
till callable:
5
a. What is the bond's...

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...

Callable bond. Corso Books has just sold a callable bond. It is
a thirty-year quarterly bond with an annual coupon rate of 5% and
$5,000 par value. The issuer, however, can call the bond starting
at the end of 10 years. If the yield to call on this bond is 7%
and the call requires Corso Books to pay one year of additional
interest at the call (4 coupon payments), what is the bond price
if priced with the assumption...

3) A bond currently sells for $850. It has an
eight-year maturity, an annual coupon of $80 but paid
semi-annually, and a par value of $1,000. This bond has a
callable feature. If this bond can be called after 5 years, for
$1,025.
(1) What is its annual yield to maturity?
(2) What is its current yield?
(3) What is the bond’s nominal yield to call (YTC)?
(4) If you bought this bond, would you be more
likely to earn the YTM...

An 8% coupon bond, $1,000 par value, annual payments, 10 years
to maturity is callable in 7 years at a call price of $1,200. If
the bond is selling today for $900, the yield to call is closest
to

NYU
issued a 20-year bond that pays a semi-annual coupon of $32.00, has
a par value of 1,000, and a nominal annual yield-to-maturity of
7.639 percent. This bond can be called in 5 years, and the nominal
annual-yield to call is 10.15 percent. Determine the call premium
for this bond.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 15 minutes ago

asked 34 minutes ago

asked 34 minutes ago

asked 40 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 5 hours ago

asked 5 hours ago