What is the semi-annual coupon bond's nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000.
Q: A bond has a $1,000 par value, 12 years to maturity,and an 8% annual coupon and sells for $980.a.…
A: a) The computation of yield to maturity as follows: Hence, the YTM is 8.27%.
Q: What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that…
A: Yield to maturity(YTM) is the rate of return on bond that is obtained if bond is held till maturity.…
Q: A bond matures in 12 years, and pays an 8 percent annual coupon. The bond has a face value of…
A: Bonds are debts instruments that are issued by entities to raise funds and meet their capital…
Q: A bond sells for $900 and is expected to trade for $1,000 in one year’s time. If the return on the…
A: Current Price = $900 Return on Bond(r) = 12% Price in one year =$1000 Let Coupon amount = X
Q: A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 5.6%. Time to maturity is…
A: A financial instrument that does not affect the ownership of the common shareholders or management…
Q: A five-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond…
A: The current yield is the annual interest earned divided by the current price of the bond.
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A: Using Financial Calculator
Q: what is its yield-to-maturity?
A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…
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A: Face value =$1000 Coupon rate =10% Coupon payment =$100 Time =20 years YTM =8% So, present value of…
Q: yield to maturity
A: Introduction: Yield to maturity is a total return that is earned by the investor from a bond if the…
Q: current price of
A: Bond price refers to the present discounted value based on some future date of cash generated by…
Q: A 13-year bond is selling at $1,040 and its coupon is paid semi-annually. If the YTM is 9%, what is…
A: RATE/ YTM (9%/12) 4.50% PERIOD (13*2) 26 PRESENT VALUE $1,040 FACE VALUE (FV) 1000…
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A: The computation of current price of bond as follows: Hence, the current price of bond is $757.58.
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Q: Suppose a seven-year, $1000 bond has a price of $980 and a yield to maturity of 8%. What is the…
A: A Bond's coupon rate is the rate of interest that is paid by the issuer of the bond on the face…
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A: Face Value of Bond = $2000 Coupon Rate = x% Coupon Amount = 2000*x% Yield Rate = 9.5% Current Price…
Q: What is the semi-annual coupon bond's nominal yield to maturity, if the years to maturity is…
A: Given: Years to maturity = 15 years Coupon rate = 10% Par value = $1000
Q: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…
A: Par Value = 1000 Price of Bond = 105% × 1000 = 1050 Coupon = Coupon Rate / 2 × Par Value Coupon =…
Q: Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to…
A: A bond is a debt instrument that has a specific maturity date. The yield to maturity is the rate…
Q: A bond has nine years to maturity, a $2,000 face value, and a 5.5% coupon rate with annual…
A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…
Q: What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current…
A: Introduction Bond Duration: Bond period is a metric for determining how much bond prices can…
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A: Given information: Face value of bond is $1000 Price after one year is $800
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A: Using excel RATE function
Q: The one-year spot rate is 8 percent and the two-year spot rate is 10 percent. What is the price of…
A: Bond refers to a debt instrument that represents a loan by a creditor to a bond issuer. The issuer…
Q: lue of a bond today is $1,055 and matures in 12 years’ time and a coupon rate of 10.5% paid…
A: Price of bond is discount rate at which price of bond present value of coupon payment and present…
Q: A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the…
A: A bond is a financial security that is sold by large business entities to raise borrowing funds.…
Q: What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for…
A: In the given above question we need to compute the yield to maturity on a bond. We can solve this…
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A: Yield-to-Maturity refers to return rate that a bond will effectively generate each year if bond is…
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A: Using excel PV function
Q: What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of…
A: Yield to maturity (YTM) is the discount rate or the rate of return that an investor earns by holding…
Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. Price of…
Q: What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a…
A: Given: Years = 5 Coupon rate = 7% Yield to maturity = 8% Face value = $1,000
Q: The yield to maturity of a $1,000 bond with a 7.3% coupon rate, semiannual coupons, and two years to…
A: Solution:- Price of bond means the price at which the bond is currently trading in the market. So,…
Q: What is the current yield of a bond
A: The current yieldis the equal to the annual interest earned divided by the current price of the…
Q: A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.…
A: Yield to maturity (YTM) is the total return expected on the bond if the bold is held till maturity.…
Q: What is the formula used to calculate the yield to maturity on a 20-year coupon bond with a current…
A: Current yield represents the net proportion of the earnings made by the bondholder either in the…
Q: A 10 year bond with 5% annual coupon and $1,000 par value sells for $1,200. What is the…
A: Face value = $1000 Duration (n) = 10 years Coupon = 5% of $1000 = $50 Bond price = $1200 Let r =…
Q: Find the yield to maturity on a semi-annual coupon bond with a face value of P 1,000, a coupon rate…
A: Solution:- Yield to maturity is the rate of return earned by the bond holder, if he holds the bond…
Q: What is the yield to maturity of a eight-year, $10,000 bond with a 5% coupon rate and semiannual…
A: The yield to maturity of the bond can be calculated with the help of RATE function of Excel
Q: What is the value of a 6%, five year bond with annual coupons and face value equal to $1,000, if the…
A: The Current price of the Bond is the present value of its expected future cash flow which is…
Q: What is the approximate yield to maturity of a 10% coupon rate, $1,000 par value bond that is…
A: Details given to us are : Par value of bond = $1000 Current price (present value) = $1250 Time…
Q: A bond maturing in fifteen years has a a current price of $825.65, yield to maturity of 9.25%, a…
A: The coupon rate is the annual return an investor seek to receive while holding a bond. Coupon rate…
Q: Calculate the value of a bond that matures in 15 years and has a $1,000 par value. The annual…
A: Face Value ( Par Value) = 1000 Time Period = 15 years Coupon = Coupon Rate * Face Value = 11%*1000 =…
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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?Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?
- What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000.What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 105% with coupons rate of 10%? Assume the par value of the bond is $1,000. Using a financial calculatorWhat is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current yield to maturity of 16 percent? Use $1,000 as the face value.
- What is the semi-annual coupon bond's nominal yield to maturity, if the years to maturity is 15years, and sells for 119% with a coupons rate of 10%? Assume the par value of the bond is $1000.What is the approximate yield to maturity (YTM) of a bond that is currently selling for $1,150 in the market place? The annual bond has 20 years remaining until maturity and pays a 14% coupon. (Assume annual interest payments and discounting.)Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to maturity. If interest is paid semi-annually, what is this bond's yield to maturity?
- What is the semi annual coupon bonds nominal yield to maturity (ytm),if the years to maturity is 15 years,and sell for 105% with coupons rate of 10% ?assume the par value of the bond is $1,000.What is the price of a bond with a coupon rate of 5.20% and semi-annual payments, if the yield-to-maturity is 10.20% and the bond matures in 20 years? Assume a par value of $1,000.Consider a zero-coupon bond with a maturity of 13 years and a face value of $1 Million. If the current market price of the bond is $751,226, and interest accrues semi-annually, what is the nominal yield-to-maturity of the bond?