Scott Turner has a bond with 10 years to maturity, a face value of $1,000, an...
Scott Turner has a bond with 10 years to maturity, a face value of $1,000, an 8% interest rate, and a market price of $800. What is the yield-to-maturity on this bond?
|
A. 4.00 percent |
||
|
B. 6.67 percent |
||
|
C. 8.00 percent |
||
|
D. 10.00 percent |
||
|
E. 11.11 percent |
Homework Answers
using excel rate function
Yield to maturity
= RATE(number_of_periods, payment_per_period, present_value, [future_value], [end_or_beginning], [rate_guess])
= RATE(10,80,-800,1000)
= 11.11%
hence choose E)
Add Answer to:
Scott Turner has a bond with 10 years to maturity, a face value
of $1,000, an...
19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value,...
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...
A bond with 10 years to maturity has a face value of $1,000. The bond can...
A bond with 10 years to maturity has a face value of $1,000. The bond can be called in four years for $1050. The bond pays an 6 percent semiannual coupon, and the bond has a 4.5 percent nominal yield to maturity. What is the price of the bond today assuming that it will be called?
The 6.9 percent bond of Peters Pickles has a face value of $1,000, a maturity of...
The 6.9 percent bond of Peters Pickles has a face value of $1,000, a maturity of 15 years, semiannual interest payments, and a yield to maturity of 7.11 percent. What is the current market price of the bond? A) $1,081.28 B) $987.95 C) $980.82 D) $990.80 E) $952.60
A bond that compounds annually has a Face Value of $1,000 and maturity of 15 years....
A bond that compounds annually has a Face Value of $1,000 and maturity of 15 years. Assume that its coupon rate is 8% and yield to maturity (YTM) is 6.12%. What is this bond’s market price?
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years. It pays interest annually, and the yield to maturity is 12%. In WORDS (1-2 complete sentences each) answer the following questions. What does it mean that the bond above has a face value of $1,000? What does it mean that the bond has a coupon rate of 8%? What does it mean that the bond has a maturity of 10 years?...
Consider two bonds: bond XY and bond ZW . Bond XY has a face value of $1,000 and 10 years to maturity and has just been...
Consider two bonds: bond XY and bond ZW . Bond XY has a face value of $1,000 and 10 years to maturity and has just been issued at par. It bears the current market interest rate of 7% (i.e. this is the yield to maturity for this bond). Bond ZW was issued 5 years ago when interest rates were much higher. Bond ZW has face value of $1,000 and pays a 13% coupon rate. When issued, this bond had a...
The 4.5 percent bond of JL Motors has a face value of $1,000, a maturity of...
The 4.5 percent bond of JL Motors has a face value of $1,000, a maturity of 7 years, semiannual interest payments, and a yield to maturity of 6.23 percent. What is the current market price of the bond? $945.08 $947.21 $903.05 $959.60 $912.40
1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The...
1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...
A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond...
A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annually. The coupon rate is 7 percent. What is the current price of this bond?
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon...
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000 and annual coupon payments.) a. If the bond has a yield to maturity of 9.1% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.) b. What will be the rate of return...
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...
Most questions answered within 3 hours.
-
Two capacitors connected in parallel produce an equivalent
capacitance of 45.0 μF but when connected in...
asked 39 seconds ago -
The differences between the two sets of dependent data are -1,
2,-,2, 2. Round to the...
asked 17 minutes ago -
A χ2-curve, looking at the relationship between age and hours
spent working at an office per...
asked 48 minutes ago -
The pH of a sample of water from a river is 5.0. A
sample of effluent from...
asked 1 hour ago -
At the beginning of the period, the Fabricating Department
budgeted direct labor of $136,500 and equipment...
asked 2 hours ago -
Please answer all
____ 28. Rent control is usually
justified on the grounds that it protects...
asked 2 hours ago -
PARTS A-D HAVE BEEN ANSWERED. WAS TOLD TO REPOST. ONLY ANSWER
PARTS E and F.
A...
asked 2 hours ago -
2) You are given the task of finding a representation for a
circle in a drawing...
asked 3 hours ago -
STUDY QUESTION: Does use of diet drug fen-phen
(fenfluramine-phentermine) cause valvular heart disease?
HINT: Valvular heart...
asked 3 hours ago -
1. An object weighing 40 N rests on a surface. The coefficient
of friction is 0.35....
asked 4 hours ago -
Investor company owns 35% of investee company voting stock and
accounts for the investment under the...
asked 5 hours ago -
The number of major faults on a randomly chosen 1 km stretch of
highway has a...
asked 6 hours ago