Correct option > 7.37%
Using financial calculator BA II Plus - Input details: |
# |
FV = Face value = |
-$1,000.00 |
PV = Bond price = |
$975.00 |
PMT = Coupon x FV/frequency = 6.75% x -1000/1 = |
-$67.50 |
N = Years to mature x frequency = 5 x 1 = |
5.00 |
CPT > I/Y = Rate = |
7.37 |
Yield to Maturity = Rate * Frequency /100 = 7.37*1/100 = |
7.37% |
Jay Aquire is considering the purchase of a Builtrite, $1000 par, 6 3/4 % coupon rate,...
Jay Aquire is considering the purchase of a Builtrite. $1000 par, 6 1/2% coupon rate, 5 year maturity bond which is selling for $975. What is the dollar amount of interest that this bond pays annually? $6.48 $65,00 $67.50 $68.40 • Previous Next
Jay Aquire is considering the purchase of a Builtrite, $1000 par, 5 1/8% coupon rate, 10 year maturity bond which is selling for $975. If Jay's required rate of return is 6%, what would he be willing to pay for the bond? $951 $946 • $941 $936
Jay Aquire is considering the purchase of the following: a Builtrite, $1000 par, 6 1/8% coupon rate, 15 year maturity bond which is currently selling for $1020. If Jay's required return is 8%, what would he be willing to pay for the Builtrite bond? A $840 B $861 C $882 D $904
jay acquire is considering the purchase of a bullrite 1000 par6 5/8% coupon rate 5 year maturity bond which is selling for 975. What is the dollar amount of interest that his bond pays annually? 6.58 66.25 67.50 68.50
3. An investor with a 5-year investment horizon is considering the purchase of 30-year 6%coupon bond selling for $850 and a par value of $1000. The vield to maturity for the bond is 7.2%. Suppose the investor faces a reinvestment rate of 5% per year and anticipates selling the bond in 5 years to yield 6% on the 25-year remaining maturity in 5 years. Calculate his total return from the investment. (17 pt.)
Joey is considering the purchase of a $1000 par value bond with a coupon rate of 5.1% (with interest paid semiannually) that matures in 12 years. If the bond is priced to yield 9%, what is the bond's current price? The bond's current price is =$
At&T 10 year, 6% annual coupon rate, 1,000 par value bond is selling at $1,200. Interest on this bond is paid annually. Calculate both approximate yield maturity and exact yield to maturity.
A 20-year bond with a coupon rate of 8% and par value of $1000 currently has a yield to maturity of 6%. The bond is callable in 5 years with a call price of $1100. What is the bond’s yield to call? A zero-coupon bond with 10 years remaining until maturity and a par value of $1000 has a yield to maturity of 10%. What is the bond’s price? (Financial calculator please)
(4) An investor is considering the purchase of a 20-year 7% coupon bond selling for $816 and a par value of $1,000. The yield to maturity for this bond is 9%. How much must the interest on interest be?
1. An investor purchases an annual coupon bond with a 6% coupon rate and exactly 20 years remaining until maturity at a price equal to par value. The investor’s investment horizon is eight years. The approximate modified duration of the bond is 11.470 years. What is the duration gap at the time of purchase? (Hint: use approximate Macaulay duration to calculate the duration gap) 2. An investor plans to retire in 10 years. As part of the retirement portfolio, the...