Question

The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity and a yield to maturity of 7.10%. What is the coupon rate?

The market price of a semi-annual pay bond is $975.36. It has 14.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity?

The market price of a semi-annual pay bond is $963.19. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield?

A firm issues preferred stock with a dividend of $4.77. If the appropriate discount rate is 9.65% what is the value of the preferred stock?

Answer 1

YEILD = 7.1000% RATE = YIELD/2 = 3.55% YEARS TO MATURITY 24.0 NPER 48.0 (years to maturity x 2) FACE VALUE $1,000.00 PRICE = PV = $989.69 Semi annual coupon =PMT = $35.05 pmt(rate,nper,-pv,fv) PMT(3.55%,48,-989.69,1000) Coupon paid annually = 35.05 x 2 = $70.1 COUPON RATE = (PMT/FACE VALUE)*2 7.01% [70.1/1000]