Assume that a bond has a face value of $250,000. It has a maturity of 1 year and the coupon rate of interest is 5%. If the current market price of this bond is $225,000, what is the yield to maturity? If the market price of the bond increases to $240,000, what happens to the yield to maturity?
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- Suppose an ordinary bond has a coupon rate of 10 percent, the yield to maturity is quotedat 12 percent. This is semiannual coupon, the bond matures in ten years. Calculate thebond’s price. Calculate the effective annual yield on this bond.K A twenty year bond with a $1000 face value was issued with a yield to maturity of 4.5% and pays coupons semiannually. After ten years, the yield to maturity is still 4.5% and the clean price of the bond is $960.09. After three more months go by, what would you expect the dirty price to be? OA. $1,000.09 OB. $970.09 OC. $980.09 O D. Cannot be determined from information given.1. Consider a coupon bond that has a $1,000 par value and a coupon rate of 9%. The bond is currently selling for $1,150 and has 9 years to maturity. What is the bond's yield to maturity?
- bond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity year 4,3,2,1,0 b- plot the time path of price for each bondSuppose a 3 year bond with a 6% coupon rate that was purchased for $760 and had a promised yield of 8%. Suppose that interest rates increased and the price of the bond declined. Displeased, you sold the bond for 798.8 after having owned it for 1 year. What should be the realized yield ?Assume a bond with a remaining maturity of 3 yearsa. If the face value is $10,000 and coupon payments are $500 per year. What would the price of this bond be if the yield to maturity is 6%?b. Given your answer in (a), is the coupon rate greater, equal, or less than the yield to maturity? Why?
- a. Tüpraş bonds have 5 years until maturity. The bonds have a 12.5% coupon, and they sell at $1100 apiece. Calculate their yield to maturity.Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond’s “coupon rate”? b. What is the bond’s “current yield”? c. What is the bond’s (nominal) “yield to maturity”? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your “holding period rate of return”? Please answer all part otherwise Dounvote3. What is the yield to maturity of a 15% coupon bond selling for $900 that has a face value of $1,000?
- Need help urgently Only typed answer needed Handwritten answer not allow On May 1, Emerson Fast bought 10 Manitoba Polar bonds with a coupon rate of 7.875%. The purchase price was 101.375, and the commission was $8 per bond. Manitoba Polar bonds pay interest on April 1 and October 1. a. What is the current yield of the bond? b. What is the total purchase price of the bonds? c. If Emerson sold the bonds on August 1 for 109.50, what are the proceeds from the sale?6. Ms. Jones wants to make 10% nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase 8%, $10,000 bond that will mature in 14 years and pays quarterly interest. This means that she will receive quarterly entert payments on the lace value the bond 10.000$ at %8 nominal interest . After 14 years she will receive the face value of the bond. How much should she be willing to pay for the bond today? Ms. Jones should be willing to pay $ for the bond today (Round to the nearest dollar)Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The bond matures in three years. What is the rate of return? Problem 6 You lend $1,000 today. The borrower promises to return $1,500 in 8 years from now. What is the yield to maturity of this loan?