Bond price is the present value of future cash flows of the bond. Current yield is annual coupon dividend by current price of bond.
Yield to maturity is the discount rate at which NPV of cash flows of investor is zero. calculation of yield to maturity of the bond:
QUESTION 51 The following information applies to the next 4 questions. A major chemical manufacturer has...
Question 15 RJR Nabisco recently experienced a market reevaluation due to a number of tobacco lawsuits. The firm has a bond outstanding with 15 years to maturity, and a coupon rate of 8 percent, with interest being paid semiannually. The required yield to maturity has risen to 16%. What is the price of the RJR Nabisco bond? $1,000 $804 $767 $550 OOOO
\ please show work in written form (not excel) thank you. Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer has recently experienced a market reevaluation. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8 percent, with interest being paid semiannually. The required simple rate on this debt has now risen to 16 percent. What is the current value of this bond? $1,273 | $1,000 |...
2. A coupon bond pays annual int coupon rate of 10%, and has a yield to maturity of annual interest, has a par value of $1.000, matures in 4 years, has a ed to maturity of 12%. The current yield on this bond is a. 10.52% b. 10.45% c. 10.95% d. 10.65% e. none of the above 3. A coupon bond that pays interest annually is selling op and has a coupon rate of 9%. The yield to maturity on...
Problem 7-19 (similar to) Question Help (Expected rate of return and current yield) Time Warner has bonds that are selling for $654. The coupon Interest rate on the bonds is 9.40 percent and they mature in 19 years. What is the yield to maturity on the bonds? What is the current yield?
4. The current yield on bond B, which has semiannual coupons, is 7.08% and the bond was sold at par (i.e., at a price of $1,000) three years ago, when the YTM on similar bonds was 8.0%. If there are 12 years until maturity, what would be the YTM to an investor who buys the bond today? (Hint: If the bond's price was $1,000 three years ago, when the market interest rate was 8.0%, what must be the coupon rate?...
Question 7 2 pts Highland Corp., a U.S. company, has a 7 year bond whose yield to maturity is 4 percent. The bond has no coupon payments but assume semi annual compounding. What is the price of this zero coupon bond? Round the answer to 2 decimal places. Question 8 2 pts Marshall Company is issuing four-year bonds with a coupon rate of 4.5 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.5 percent,...
a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5% (paid semiannuall) on a $1000 par value. if it is currently selling in the market for $1140, what is its yield to maturity? 9.18% 8.23% 7.89% 6.84%
You paid $957,3 for a 5% 5-year bond, which has a face value of $1000 and pays coupons twice each year. What is the yield-to-maturity? Choose the closest answer A 2% B 3% C 4% D 5% E 6% A bond matured in 15 years has a current yield of 8.35%. The face value is $1000 while the selling price is $1197.93. What is its coupon rate if it pays semi-annual coupon payments? A 4.18% B 5.00% C 8.35% D...
A bond with a par value of $1,000 and an annual coupon rate of 9.5% has a yield to maturity of 6.4%. If the bond has 11 years to maturity, what is its current yield?
I need hjelp on question 1. Bond Valuation Exercises: Question 1. GTF Corporation has 5 percent coupon bonds on the $1.000 and 10 years left to maturity. The bonds make annual in the market with a par of market interest rate on these bonds is 7 percent, what is the current terest payments. If the s 7 percent, what is the current bond price? Question 2. MTV Corporation has 7 MTV Corporation has 7 percent coupon bonds on the market...