Please provide rating...
we have to use financial calculator to solve this problem. | |||||||||||
Put in calculator below for each individual case | |||||||||||
N | 2 | 2 | 3 | 5 | 5 | ||||||
I | 5% | 7% | 7% | 5% | 5% | ||||||
PMT =1000*7% | -70 | -70 | -70 | -70 | -70 | ||||||
FV | -1000 | -1000 | -1000 | -1000 | -1000 | ||||||
Compute PV | $1,037.19 | $1,000.00 | $1,000.00 | $1,086.59 | $1,086.59 | ||||||
Therefore Current price | $1,037.19 | $1,000.00 | $1,000.00 | $1,086.59 | $1,086.59 | ||||||
When yield to maturity is higher than coupon rate, the bond's current price is below its face value. | |||||||||||
For a given, maturity, bond's current price decreases as yield to maturity rises | |||||||||||
For a given yield to maturity, a bond's value decreases as its maturity increases. | |||||||||||
When the yield to maturity is same as the coupon rate , bond's current price equals its face value regardless of the number of years to maturity |
Consider a bond with a 7% annual coupon and a face value of $1,000. Complete the...
Consider a bond with a 6% annual coupon and a face value of $900 Complete the following table. (Enter your responses rounded to two decimal places) Years toYield to Current Maturity Maturity Price 4% 6% 6% 4% 8% 6 the coupon rate, the bond's current price is below its face value. For a given maturity, the When the yield to maturity is bond's current price maturity increases. When the yield to maturity is the number of years to maturity as...
Consider a bond with a 6% annual coupon and a face value of $1100 Complete the following table. (Enter your responses rounded to two decimal places.) Years to Maturity Yield to Maturity Current Price 33 44% $1161.051161.05 33 66% $11001100 44 66% $11001100 66 44% $1215.331215.33 66 88% $998.30998.30 When the yield to maturity is the coupon rate, the bond's current price is below its face value. For a given maturity, the bond's current price as the yield to maturity...
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BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.3%. If Janet sold the bond today for $1,026.98, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. % BOND VALUATION Madsen Motors's bonds have 12 years remaining to...
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19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is 6.97 percent? A. $799.32 B. $848 16 C. $917.92 D. $1,005.46 E. None of the above.l 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is...