Homework Answers
Yield to call is calculated using the RATE function:-
=RATE(nper,pmt,pv,fv)
=RATE(2,5%*1000,-1100,105%*1000)
=2.30%
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.. 4 Unanswered A callable bond has 10 years to maturity and 2 years to call....
4 Unanswered A callable bond has 10 years to maturity and 2 years to call. The...
4 Unanswered A callable bond has 10 years to maturity and 2 years to call. The bond is callable at 105% of par and has a coupon rate of 5%. If the bond is currently priced at $1100, what is the yield to call %? (Convert to a percent, but include only numbers in your response.) Type your response 2 attempts left. Submit
A callable bond has 15 years to maturity and can be called in 5 years. The...
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A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7% (3.5% per half-year). a. What is the yield to call annually? (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Meld to call 010144 b. What is the yield to call annually if the call price is only $1,050? (Do not round Intermediate calculations. Round your...
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Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in...
Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in 5 years at a call price of$1,100. The bond currently sells at a yield to maturity of 8% (4% per half-year). aWhat is the yield to call? b. What is the yield to call if the call price is only $1,050 .What is the yield to call if the call price is $1,100, but the bond can be called in 2 years instead of...
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Question 5 10 pts Estimate the yield to call of a bond that is $1,000 par,...
Question 5 10 pts Estimate the yield to call of a bond that is $1,000 par, semi-annual coupon payments, 25 years to maturity, 10% coupon, and is currently selling for $1.200. The bond is callable in 7 years at a 12% call premium. Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34%, type 12.34).
Six years ago, you purchased a callable bond with fifteen years until maturity. The bond has...
Six years ago, you purchased a callable bond with fifteen years until maturity. The bond has a $1,000 par value and pays interest semiannually. The bond has 9% coupon rate and a 6% yield to maturity. The bond offers three years of call protection and a 2% call premium. a. How much did you pay for the bond at the time of purchase? b. Today, the firm called the bond. What is the bond’s yield to call? c. Did the...
Callable bond. Corso Books has just sold a callable bond. It is a thirty-year semiannual bond...
Callable bond. Corso Books has just sold a callable bond. It is a thirty-year semiannual bond with an annual coupon rate of 12% and $1,000 par value. The issuer, however, can call the bond starting at the end of 10 years. If the yield to call on this bond is 5% and the call requires Corso Books to pay one year of additional interest at the call (2 coupon payments), what is the bond price if priced with the assumption...
4 Unanswered A callable bond has 10 years to maturity and 2 years to call. The bond is callable at 105% of par and has a coupon rate of 5%. If the bond is currently priced at $1100, what is the yield to call %? (Convert to a percent, but include only numbers in your response.) Type your response 2 attempts left. Submit
.1 T-Mobile 5:59 AM 1 100% х Question ... 3 Unanswered A 30-year bond is priced at 97.8 and is callable in 5 years at 105. The coupon rate is 4%. What is the bond's yield to call? Type your response 2 attempts left. Submit
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7% (3.5% per half-year). a. What is the yield to call annually? (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Meld to call 010144 b. What is the yield to call annually if the call price is only $1,050? (Do not round Intermediate calculations. Round your...
Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in 5 years at a call price of$1,100. The bond currently sells at a yield to maturity of 8% (4% per half-year). aWhat is the yield to call? b. What is the yield to call if the call price is only $1,050 .What is the yield to call if the call price is $1,100, but the bond can be called in 2 years instead of...
Question 5 10 pts Estimate the yield to call of a bond that is $1,000 par, semi-annual coupon payments, 25 years to maturity, 10% coupon, and is currently selling for $1.200. The bond is callable in 7 years at a 12% call premium. Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34%, type 12.34).
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