2) A ten-year, 1000 TL Nominal value bond with an 30% coupon rate and semi-annual coupons is trading for a price of 1,150.00 TL. a) What is the bond's yield to maturity? b) If the bond's yield to maturity changes to 40%, what will the bond's price be?
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?i)A risk-free, zero coupon bond with a face value of $5,000 has 10 years to maturity. If the YTM is 3.25%, at what price will the bond trade? (ii) What is the price of a $10,000 bond with a 4.5% coupon rate with quarterly coupon payments, and 7 years to maturity if it has a YTM of 6?Consider a bond that has a current value of $1,081.11, a face value of $1,000.00, a coupon rate of 10% and five years remaining to maturity.a. What is the bond’s yield-to-maturity today?b. If the bond’s yield does not change, what is its value one year from today? Please solve both parts
- Suppose a bond with a 14% coupon rate and semiannual coupons with 12% YTM and has a face value of $1000, 10 years to maturity. What is the price of the bond? Is this a premium or discount bond?Consider a bond that has a current value of $1,081.11, a face value of $1,000.00, a coupon rate of 10% and five years remaining to maturity.a. What is the bond’s yield-to-maturity today?b. If the bond’s yield does not change, what is its value one year from today?Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? What is the yield to maturity of the bond?
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