a) Suppose a five-year, $1,000 bond with semiannual coupons has a price of $957.35 and yield to maturity of 6%. What is the bond’s coupon rate?
b) Hacker Software has 6.2 percent coupon bonds on the market with nine years to maturity. The bonds make semiannual payments and currently sell for 105 percent of par. What is the yield to maturity on this bond? (Write down the expression for YTM and then use a financial calculator or a spreadsheet program to find the answer. Please write down your answer in the form of x.xx%.)
c) Consider a five-year bond with 7.5 percent annual coupon, currently selling at par. Your estimate of its yield to maturity a year from today is 7.5%. Suppose you plan to sell your bond at the end of one year, right after receiving your coupon payment. What is your expected return on bond investment? Note: You don’t need a calculator to answer this question, if you have sufficient knowledge on bond. Explain how you reach your answer.
a)
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a) Suppose a five-year, $1,000 bond with semiannual coupons has a price of $957.35 and yield...
4. The current yield on bond B, which has semiannual coupons, is 7.08% and the bond was sold at par (i.e., at a price of $1,000) three years ago, when the YTM on similar bonds was 8.0%. If there are 12 years until maturity, what would be the YTM to an investor who buys the bond today? (Hint: If the bond's price was $1,000 three years ago, when the market interest rate was 8.0%, what must be the coupon rate?...
Suppose a seven-year, $1,000 bond with a 11.94 % coupon rate and semiannual coupons is trading with a yield to maturity of 9.79 %. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 10.26 % (APR with semiannual compounding), at what price will the bond trade? a. Is this bond currently trading at a discount, at par, or at a premuim? Explain....
Suppose a five-year, $1000 bond with annual coupons has a price of $900 and a yield to maturity of 6%. What is the bond’s coupon rate?
do not round Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading with a yield to maturity of 6.42%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.28% (APR with semiannual compounding), what price will the bond trade for?
1.) Suppose a five-year, $1,000 bond with annual coupons has a price of $900.00 and a yield to maturity of 6.0%. What is the bond's coupon rate?2.) The yield to maturity of a 2 year $1,000 bond with a 8.5% coupon rate and semiannual coupons is 9.1% APR, compounded semi-annually. What must its price be?
Suppose a seven-year, $1,000 bond with a 10.66% coupon rate and semiannual coupons is trading with a yield to maturity of 8.74%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain.b. If the yield to maturity of the bond rises to 9.45% (APR with semiannual compounding), at what price will the bond trade?
Suppose a five-year,$1,000 bond with annual coupons has a price of $901.51 and a yield to maturity of 6.4%.What is the bond's coupon rate?
Suppose a five-year, $1,000 bond with annual coupons has a price of $900 and a yield to maturity of 6%. What is the bond's coupon rate?
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
Suppose a five-year, $1,000 bond with annual coupons has a price of $895.54 and a yield to maturity of 6.1%.What is the bond's coupon rate? The bond's coupon rate is ____%. (Round to three decimal places.)