Question

Springfield Nuclear Energy Inc. bonds are currently trading at $1291.39, The bonds have a face value of $1,000 a coupon rate of 10.5% with coupons paid annually, and they mature in 15years. What is the yield to maturity of the bonds?

The yield to maturity of the bonds is ____

beam inc. bonds are trading today for a price of ​$798.96. the bond pays annual coupons with a coupon rate of 6​% and the next coupon is due in one year. the bond has a yield to maturity of 8.11​%. how many years are there until the bond​ matures?

The number of years until the bond matures is ____

A 9-year bond pays interest of $27.70 semiannually, has a face value of $1,000, and is selling for $805.55. What are its annual coupon rate and yield to maturity?

Answer 1

1.

Calculating YTM,

Using TVM Calculation,

I = [PV = -1,291.39, FV = 1,000, PMT = 105, N = 15]

I = 7.25%

2.

Calculating Time Period,

N = [PV = -798.96, FV = 1,000, PMT = 60, I = 0.0811]

N = 19 years

3.

Calculating YTM,

Using TVM Calculation,

I = [PV = -805.55, FV = 1,000, PMT = 27.70, N = 18]

I = 8.70%

Coupon Rate = 2(27.70)/1,000 = 5.54%

YTM = 8.70%