Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,963.46. The bond has a coupon rate of 6.81 percent and matures in 23 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
Multiple Choice
6.27%
5.23%
6.97%
3.49%
6.62%
The YTM of the bond is computed as shown below:
Just plug the below figures in the financial calculator as follows:
PV = - 1,963.46
FV = 2,000
PMT will be
= ( 6.81% / 2 ) x 2,000
= 68.10
N will be:
= 23 x 2
= 46
Finally press YTM, it will give YTM be equal to
= 3.485 Approximately
Now we shall multiply it by 2 to get the final answer as
= 3.485 x 2
= 6.97%
So the correct answer is option of 6.97%
Feel free to ask in case of any query relating to this question
Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,963.46. The...
Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,930.36. The bond has a coupon rate of 6.96 percent and matures in 22 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? Multiple Choice Skipped 6.92% eBook 5.46% 6.55% 3.64% 7.28%
Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,910.50. The bond has a coupon rate of 7.05 percent and matures in 19 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? 3.75% 7.50% 6.75% 7.12% 5.62%
A 23-year, semiannual coupon bond sells for $981.73. The bond has a par value of $1,000 and a yield to maturity of 6.81 percent. What is the bond's coupon rate? A 23-year, semiannual coupon bond sells for $981.73. The bond has a par value of $1,000 and a yield to maturity of 6.81 percent. What is the bond's coupon rate? Multiple Choice 3.33% 5.99% 6.65% 4.99%
There is a bond that has a quoted price of 107.793 and a par value of $2,000. The coupon rate is 6.96 percent and the bond matures in 22 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
There is a bond that has a quoted price of 96.777 and a par value of $2,000. The coupon rate is 6.60 percent and the bond matures in 16 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
There is a bond that has a quoted price of 94.941 and a par value of $2,000. The coupon rate is 6.54 percent and the bond matures in 14 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
1. A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with...
2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with a current yield of 6.64 percent is quoted at 96.171. What is the coupon rate of the bond:?4. Footsteps Co. has a bond outstanding with a coupon rate of 5.7 percent and...
there is a bond that has quoted a price of 107.324 and a par value of $2000. the coupon rate is 7.08 percent and the bonb matures in 18 years. if the bond makes semiannual coupon payments, what is the YTM of the bond?
Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 6.3 percent. The bond sells for $1,031.92 and matures in 19 years. The par value is $1,000. What is the YTM of the bond? Multiple Choice 3.01% 4.51% 5.41% 6.02% 5.72%