Compute the bond’s current yield.
| current yield = coupon rate*par value/current price |
| Current yield%=(6/100)*1000/840 |
| Current yield% = 7.14 |
A bond is currently selling for $840. The bond will mature in 9 years. The bond’s...
A bond has just been issued. The bond is currently selling for $900. The bond will mature in 9 years. The bond’s annual coupon rate is 6% and the face value of the bond is $1,000. Coupons will be paid annually. The bond is callable in 8 years and the call price is $1180. Excel Compute the bond’s yield to call.
A bond has just been issued. The bond is currently selling for $900. The bond will mature in 14 years. The bond’s annual coupon rate is 7% and the face value of the bond is $1,000. Coupons will be paid annually. Excel Compute the bond’s yield to maturity.
A bond has just been issued. The bond is currently selling for $1050. The bond will mature in 7 years. The bond’s annual coupon rate is 16% and the face value of the bond is $1,000. Coupons will be paid semi-annually. Excel Compute the bond’s annual yield to maturity.
A bond was purchased on March 20, 2009 and the quoted bond price was $1075. The previous coupon date was January 1, 2009. The next coupon date is January 1, 2010. The bond will mature on January 1, 2018. The bond’s annual coupon rate is 10% and the face value of the bond is $1,000. Coupons will be paid annually. a. Compute the bond’s yield to maturity on an accrued interest payment basis. PLEASE USE EXCEL
Assume today you purchase a bond that will mature in 10 years for $985. Bond’s face value is $1,000 and coupon payment per year is $120 (coupon rate=12%). A. What is the bond’s yield to maturity (YTM)? B. What is the total return if you sell the bond after 6 years for $1,025?
A bond has just been issued. The bond has an annual coupon rate of 9% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 10 years. The bond’s yield to maturity is 12%. e. Calculate the bond’s duration at a yield to maturity of 10.5%. f. Use the bond’s duration to calculate the approximate bond price change as the yield to maturity changes from 12% to 10.5%. g. Use the bond’s modified...
a. Springfield Nuclear Energy Inc. bonds are currently trading at $1,775.16. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 25 years. What is the yield to maturity of the bonds? b. Consider an annual coupon bond with a face value of $100,12 years to maturity, and a price of $76. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of...
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...
A bond was purchased on March 20, 2009 and the quoted bond price was $1075. The previous coupon date was January 1, 2009. The next coupon date is January 1, 2010. The bond will mature on January 1, 2018. The bond’s annual coupon rate is 10% and the face value of the bond is $1,000. Coupons will be paid annually. Compute the bond’s yield to maturity on an accrued interest payment basis.
A bond has just been issued. The bond has an annual coupon rate of 9% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 10 years. The bond’s yield to maturity is 12%. Calculate the price of the bond at the yield to maturity of 12%. Calculate a new price for the bond if the yield to maturity decreases to 10.5%. Calculate the actual change in the bond’s price as the yield...