Answer 1 = YTM = 4%
Answer 2 = Price of bond = $916.98
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Suppose that a bond has one year to maturity. The yield to maturity on the bond...
Calculate the yield to maturity (YTM) for a one-year coupon bond with a purchase price of $8000 a face value of $10000 and a current yield of 10%. The yield to maturity is nothing%. (Round your response to one decimal place.)
Which of the following instruments pays the holder of the instrument a fixed interest payment every year until maturity, and then pays the holder the face value (principle) of the instrument? at maturity O A. fixed-payment loan O B. simple loan O C. coupon bond O D. discount bond Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for $1130.00 and has a $1100 face value with a coupon...
1. Suppose a five-year, $ 1,000 bond with annual coupons has a price of $ 903.98 and a yield to maturity of 5.7 %. What is the bond's coupon rate? The bond's coupon rate is ........... % ( Round to three decimal places.) 2. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1,000 and a coupon rate of 7.7 % (annual payments). The yield to maturity on this bond...
I have a couple Yield to Maturity practice questions I'm working on out of my textbook. Any help appreciated! a.) Suppose that a bond has one year to maturity. What is the yield to maturity on the bond if it was bought for $1080 and has a $1300 face value with a coupon rate of 9%? b.) Consider a coupon bond with a face value of $1500, one year to maturity, and a coupon rate of 6%. With a yield...
A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of 14 percent. 12 percent. 10 percent. 8 percent. 4.2 The Distinction Between Interest Rates and Returns 4 of 5 (0 complete) End-of-Chapter Exercise 19 Calculate the yield to maturity (YTM) for a one-year coupon bond with a purchase price of $800, a face value of $1,000, and a cumrent yield of 5%. The yield to maturity is (Round your response to one decimal place.)...
Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a current yield of 10%. The yield to maturity is 35.0%. (Round your response to one decimal place.) The yield to maturity on the bond given above is greater than the YTM of a similar $10,000 20-year bond with a current yield of 20% selling for $8,000.
If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4-year 4.2 percent coupon bond with annual coupon payments and a face value of $1,000. a. Assume the yield to maturity is 3.2 percent. What is the current value of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)...
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to the nearest whole number) %. Round your response to What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $990, pays an annual coupon of $70, and whose price today is $1009 50 OA. 6% B. 5% ОС. 7% OD, 4% OE, 8%...
Suppose that a 20-year government bond has a maturity value of $1000 and a coupon rate of 9%, with coupons paid semiannually. Find the market price of the bond if the yield rate is 8% compounded semiannually. (Round your answer to the nearest cent.)