Five years ago, Cookie Limited issued a bond with 15% coupon rate, semi-annual coupon payments, $1000 face value and 15 years until maturity. If you bought this bond 4 years ago (right after the bond made its coupon payment) when the YTM was 11%, how much did you pay for the bond? Please do not use excel or a financial calculator and show formulas.
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Five years ago, Cookie Limited issued a bond with 15% coupon rate, semi-annual coupon payments, $1000...
Five years ago, Cookie Corp. issued a bond with 15% coupon rate, semi-annual coupon payments, $1000 face value and 15 years until maturity. The current YTM is 16%. If you sell the bond today (next coupon payment is in 6 months from today), after having owned it for 4 years, what would your capital gain/loss yield? Please show formulas and do not use excel or financial calculator.
Five years ago, Winter Tire Corp. issued a bond with a 12% coupon rate, semi-annual coupon payments, $1,000 face value, and 15-years until maturity. a) You bought this bond two years ago (right after the coupon payment) when the yield-to-maturity was 12%. How much did you pay for the bond? b) If the yield-to-maturity is 15% now, what is the value of the bond today (next coupon payment is in 6 months from today)? c) If you sold the bond...
ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM? ABC issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM? A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity...
2. Suppose a firm issued a 10% coupon bond (annual coupon) 10 years ago. The bond now has 5 years left until its maturity date, but the firm is having financial difficulties. Investors believe that the bond will make the remaining coupon payments but will pay off only 60% of face value at maturity. The face value of the bond is $1,000 and the bond is currently selling at $800. What are the promised and expected yield to maturity of...
Note: If not otherwise stated, assume that: • Yield-to-maturity (YTM) is an APR, semi-annually compounded • Bonds have a face value of $1,000 • Coupon bonds make semi-annual coupon payments; however, coupon rates (rc) are annual rates, i.e., bonds make a semi-annual coupon payment of rc/2 Four years ago, Candy Land Corp. issued a bond with a 14% coupon rate, semi-annual coupon payments, $1,000 face value, and 14-years until maturity. a) You bought this bond three years ago (right after...
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate is 7.6% and the yield to maturity is 6.4%. What is the bond's price assuming no default? [Provide your answer rounded to two digits.]
Please show work in financial calculator I own a 9% coupon bond with 15 years left to maturity. Every year when I receive my $90 interest I invest it in an account earning 7%. A. How much money will I have in that account at the end of the 15 years? B. At the end of 15 years I will also get $1000 back from the company which issued the bond. How much total will I now have? C. If...
Two years ago you have purchased a bond with $1000 par, semi-annual coupons with a coupon rate of 8% and maturity of 20 years for $ 1,200. Calculate your holding period return for this bond over the last two years, if you were able to reinvest coupons at 11% and the current YTM is 7%!
. Example: . Suppose a firm issued a 9% coupon bond (semiannual coupon) 20 years ago. The bond n ow has 10 years left until its maturity date. The bond is selling at $ 750. . But the firm is having financial difficulty. Investors believe that the firm will be able to ma ke good on the remaining interest rate payments but that at the maturity date, the firm w ill be forced into bankruptcy and bondholders will receive only...
. Suppose a firm issued a 9% coupon bond (semiannual coupon) 20 years ago. The bond n ow has 10 years left until its maturity date. The bond is selling at $750. . But the firm is having financial difficulty. Investors believe that the firm will be able to ma ke good on the remaining interest rate payments but that at the maturity date, the firm w ill be forced into bankruptcy and bondholders will receive only 70% of par...