Yield to call is calculated using the RATE function as follows:-
=RATE(nper,pmt,pv,fv)
=RATE(7*2,10%/2*1000,-1200,112%*1000)*2
=7.59%
Question 5 10 pts Estimate the yield to call of a bond that is $1,000 par,...
Question 4 10 pts Estimate the yield to maturity of a bond that is $1,000 par, semi-annual coupon payments, 25 years to maturity, 10% coupon, and is currently selling for $1,200. Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g., for 12.34%, type 12.34).
Question 6 10 pts Value a bond that is $1,000 par, semi-annual coupon payments, 20 years to maturity. 10% coupon rate, and with an 8% required (market) rate. Note: Show your answer in units of dollars, use plain numbers with at least two digits after the decimal (e.g., for $12,345.67, type 12345.67).
Assume a bond with the following parameters: What is it's Yield to Call? Par Value $1,000 Call Premium $75 Coupon Rate 8.00% Payments are Made Semi-Annually Years to Maturity 20 Years to Call 10 Current Market Price $1,350
Question 21 1 pts A $1,000 par value 9% annual coupon bond matures in 10 years but is callable in 3 years. The bond is currently selling for $1,026. If the bond carries a call premium equal to one interest payment, what is its yield to call? 8.2% 7.7% 9.5% 10.6%
1. What is the yield to maturity for a $1,000 par, 15 year, 8% coupon bond with annual payments, callable in 3 years for $1,050 that sells for $950? A. 8.61% B. 11.55% C. 3.22% D. 3.77% 2. What is the yield to call for a $1,000 par, 15 year, 8% coupon bond with annual payments, callable in 3 years for $1,050 that sells for $950? A. 11.55% B. 3.77% C. 8.61% D. 3.22% 3. What is the yield to...
Assume a bond with the following parameters: What is it's Yield to Maturity? Par Value $1,000 Call Premium $75 Coupon Rate 6.00% Payments are Made Semi-Annually Years to Maturity 20 Years to Call 10 Current Market Price $1,200
A. Yield to Call Find the yield to call for a 7% coupon, $1,000 par 15 year bond selling at $1020.55 if the bond is callable in 10 years at a call price of $1,070. The bond makes semiannual coupon payments. B. Exotic Contracts A contract where the seller of the contract collects an annual premium (and sometimes an upfront fee) from the buyer and in exchange the seller of the contract pays the drop in value from par to...
-What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.98 percent per year, has a $1,000 par value, and is currently priced at $918? The bond can be called back in 7 years at a call price $1,089. Assume annual coupon payments. -Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 17 years and a yield to maturity of 10.23 percent,...
A callable bond has 15 years to maturity and can be called in 5 years. The bond’s coupon rate is 12% with semi-annual coupon payments. The par value is $1000. If the bond is called, the call price will be $1100. The bond is currently selling for $1055.35 What is the difference between its yield-to-call and yield-to-maturity?
Question 14 1 pts A 7% coupon, $1,000 par value callable bond is selling for $1,094.23. Its yield to maturity is 5.74%, and its yield to call is 6.00%. Would an investor be more likely to earn the yield to maturity or the yield to call? Yield to maturity because the coupon rate exceeds the discount rate. Yield to call because the yield to call exceeds the yield to maturity. Yield to call because the coupon rate exceeds the yield...