Formula used
YTM = (Coupon + (FV - PV) / t) / (FV + PV) / 2
YTM = (65 + (1,000 - 1,034.66) / 5) / (1,000 + 1,034.66) / 2 = 58.068 / 1,017.33 = 5.71% or 5.7%
Question 32 (0.2 points) John Wong purchased a five-year bond today at $1,034.66. The bond pays...
Question 15 John Wong purchased a five-year bond today at $1,034.66. The bond pays 6.5 percent semiannually. What will be his yield to maturity? (Round to the closest answer.) 6.796 5.7% 3.25% 1 pts 6.296
One year ago, you purchased a $1,000 face value bond at a yield to maturity of 9.45 percent. The bond has a 9 percent coupon and pays interest semiannually. When you purchased the bond, it had 12 years left until maturity. You are selling the bond today when the yield to maturity is 8.20 percent. What is your realized yield on this bond? a. 16.35 percent b. 18.11 percent c. 14.54 percent d. 17.60 percent e. 15.27 percent
PLEASE BREAKDOWN YOUR ANSWER, THANK YOU Alex purchased a $1,000 par value bond one year ago at a price of $1,008. At the time of purchase, the bond had 14 years to maturity and a 6 percent, semiannual coupon. Today, the yield to maturity of changed to 6.5 percent and he sold the bond. What is his realized yield as of today?
Question 5 2 pts Bigbie Corp. issued a three-year bond a year ago with a coupon of 8 percent. The bond pays interest semiannually. If the yield to maturity on this bond is 7.9 percent, what is the price of the bond? Round your answer to 2 decimal places. 2 pts Question 6 Bond price: Pierre Dupont just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Venice Corp. that pays an...
Question 3: (10 points). (Yield to maturity) The market price is $750 for a 20-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity? (Round to two decimal places.) The bond's yield to maturity is | | %
Jill wants to invest in a four-year bond that pays a coupon of 11 percent annually. The bonds are selling at $962.13 today and have a face value of $1,000. If she buys this bond and holds it to maturity, what would be the yield? (USE EXCEL or FINANCIAL CALCULATOR. Round to the closest answer.)
Jorge Cabrera paid $980 for a 15-year bond 10 years ago. The bond pays a coupon of 10 percent semiannually. Today, the bond is priced at $1,054.36. If he sold the bond today, what would be his realized yield? (Round to the nearest percent.) ** No computer answers** HP financial calculator is fine Formula is a must
Today (T=0), an investor purchased a five year bond with an 8.0% coupon at par. Assume interest rates do not change from now until the bond’s maturity. If the investor holds the bond from now until maturity, the investor’s rate of return will be closest to
Today (T=0), an investor purchased a five year bond with an 8.0% coupon at par. Assume interest rates do not change from now until the bond’s maturity. If the investor holds the bond from now until maturity, the investor’s rate of return will be closest to: A. 4.0% B. 6.7% C. 7.0% D. 8.0% E. 9.7%
2. Suppose that you buy a 10 percent coupon, 3-year bond today with a par value of $1,000. The bond pays coupons semiannually. (a) Sketch the future cash flows of this bond. (b) If the yield to maturity is 5 percent, what is the current bond price? (c) In light of your answer to (b), is this a discount bond or a premium bond? 2 A