1)
yield to call:
=RATE(8*2,8.4%/2*1000,-885,1080)*2
=11.26%
2)
Current yield:
=(18.93%*1000)/810.86
=23.35%
3)
Yield to maturity
ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18...
ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18 years to maturity and the current price is $885. If the call price is $1,080 and the bond can be called in 8 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box. Question 19 1 pts The coupon rate on a bond...
ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18 years to maturity and the current price is $1,099. If the call price is $1,150 and the bond can be called in 12 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
ABC Inc. recently issued $1,000 par bonds at a 3.25% coupon rate. If the bonds have 20 years to maturity and the bonds are quoted at 102.25% of the par value, what is the yield to maturity? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
1. ABC, Inc. has issued a 21-year bond with a par value of $1,000, coupon rate of 7.42%. The yield to maturity (YTM) is 3.03%. Assume semi-annual payments. What is today's price of this bond?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 2.A 5% semiannual coupon bond maturing in 5 years with a par value of $100 is trading at $95. Calculate the yield to maturity. 3.Suppose you...
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Question 15 1 pts Assume that you wish to buy a bond with 27 years to maturity, with a par value of $1,000, and a coupon rate of 22.33%. Assume semi-annual payments. If the yield to maturity (YTM) is 21.43%, what is today's price of this bond? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. Question 16 1 pts Price a 2-yr 4% semiannual coupon bond with a...
Question 15 1 pts Assume that you wish to buy a bond with 27 years to maturity, with a par value of $1,000, and a coupon rate of 22.33%6. Assume semi-annual payments. If the yield to maturity (YTM) is 21.43 % , what is today's price of this bond? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box Question 16 1 pts Price a 2-yr 4% semiannual coupon bond...
Company M has issued bonds previously. The bonds have a par value of $1,000 and offer an annual coupon rate of 6%. The bond has 9 years remaining until its maturity date. Calculate the value (price) of the bond assuming: The current market interest rate (also called the discount rate, required rate of return, Yield to Maturity) is... (A) 4% (B) 8% (C) 6%