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An NickJr bond carries an 8 percent coupon paid annually. The
par value is $50,000, and the bond matures in six years. If the
bond currently sells for $45,568.50, what is its yield to maturity?
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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?A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. Assume a face value of $1,000 and annual coupon payments.a) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time?b) What will be the rate of return on the bond? c) If the inflation rate during the year is 3%, what is the real rate of return on the bond? Assume annual interest payments.A bond has 10 years until maturity, a coupon rate of 7.2%, and sells for $1,180. Interest is paid annually. (Assume a face value of $1,000.) If the bond has a yield to maturity of 10.8% 1 year from now, what will its price be at that time?
- A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. Assume a face value of $1,000 and annual coupon payments. 1) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time? 2) What will be the rate of return on the bond? 3) If the inflation rate during the year is 3%, what is the real rate of return on the bond? Please show workings with formulas.A bond is issued with a coupon of 6% paid annually, a maturity of 38 years, and a yield to maturity of 9 %. What rate of return will be earned by an investor who purchases the bond for $679.28 and holds it for 1 year if the bond's yield to maturity at the end of the year is 12% ?As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 18 years, the coupon rate is 6% paid annually, and the market yield (discount rate) is 13%. What should be the estimated value of this bond in one year?
- Consider a bond paying an annual coupon of $70 with a face value of $1,000. Calculate the yield to maturity if the bond has 18 years remaining to maturity and is priced at $1,150. What would be the holding period yield if the bond is held for 15 years and sold at $1,100?You purchase a bond for $825. It pays a semi-annual coupon of 4 percent, and the bond matures after ten years. What is the yield to maturity?
