You notice in the WSJ a bond that is currently selling in the market for $1,070 with a coupon of 11% and a 20- year maturity. Using annual compounding, calculated the promised yield on this bond.
Show how to get from a to b
Or how to compute in excel
You notice in the WSJ a bond that is currently selling in the market for $1,070...
You notice in the WSJ a bond that is currently selling in the market for $1097 with a coupon of 11% and a(n) 23-year maturity. Using annual compounding, calculate the promised yield on this bond. The bond's promised yield is
You notice in the WSJ a bond that is currently selling in the market for $1,049 with a coupon of 8% and a(n) 21-year maturity. Using annual compounding, calculate the promised yield on this bond.
You notice in the WSJ a bond that is currently selling in the market for $1,081 with a coupon of 12% and a(n) 18-year maturity. Using annual compounding, calculate the promised yield on this bond. The bond's promised yield is (blank) percent ? *round to two decimal places*
a. b. c. Three years ago you purchased a 9% coupon bond that pays semiannual coupon payments for $962. What would be your bond equivalent yield if you sold the bond for current market price of $1,045? Your bond equivalent yield if you sold the bond for current market price is Round to two decimal places. Assume that an investor pays $920 for a long-term bond that carries a coupon of 11%. In 3 years, he hopes to sell the...
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 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) You are considering the purchase of a $1,000 par value bond with a coupon rate of 5% (with interest paid semiannually) that matures in 12 years. If the bond is priced to yield 9%, what is the bond's current price? The bond's current price is $__ B) Compute the current yield of a(n) 8.5%, 25-year bond that is currently priced in the market at $1,200. Use annual compounding to find the promised yield on this bond. Repeat the promised...
A bond is currently selling for $840. 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. Excel Compute the bond’s current yield.
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 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT? The bond's current yield is above 9%. The bond's yield to maturity is above 9%. If the bond's yield to maturity declines, the bond will sell at a discount. The bond's expected capital gains yield is zero.