Remember: bond interest payments are semi-annual, and maturity and face value are $1,000 Capital One has...

Question

Question

Remember: bond interest payments are semi-annual, and maturity and face value are $1,000

Capital One has a 7-year, 8.9% bond issue selling for $991.78.

Answer 1

Answer #1

ASRFgtu7iXR5AAAAAElFTkSuQmCC

What is the yield to maturity on this bond?

Yield of Bond = 9.06%

Calculated using RATE funtion

Is the bond selling at a premium or a discount?

Answer is Discount

price of the bond is less than the face value hence its at discount

What is the current yield on this bond?

Current Yield =Coupon payment/ value of bond =$89/991.78=8.97%

Answer 2

Similar Homework Help Questions

bond interest payments are semi-annual, and maturity and face value are $1,000 John has a 3-year,...

bond interest payments are semi-annual, and maturity and face value are $1,000 John has a 3-year, 4.9% bond with a yield to maturity of 4.03%. a. What is the price of the bond? b. Is the bond selling at a premium or a discount? c. What is the current yield on this bond?
Bill has a 7-year, 8.9% bond issue selling for $991.78. What is the yield to maturity...

Bill has a 7-year, 8.9% bond issue selling for $991.78. What is the yield to maturity on this bond? Is the bond selling at a premium or a discount? What is the current yield on this bond? Remember: bond interest payments are semi-annual, and maturity and face value are $1,000
A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a...

A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a market price of $1,032.19. Assume that the next coupon payment is exactly six months away. a) What is the yield-to-maturity of the bond? b) What is the effective annual rate implied by this price?

A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a...

A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 6%. a. What is the bond’s yield to maturity if the bond is selling for $990? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity % b. What is the bond’s yield to maturity if the bond is selling for $1,000? Yield to maturity % c. What is the bond’s yield to maturity if the...
A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a...

A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 6%. a. What is the bond’s yield to maturity if the bond is selling for $990? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity % b. What is the bond’s yield to maturity if the bond is selling for $1,000? Yield to maturity % c. What is the bond’s yield to maturity if the...
A bond has a $1,000 face value and a $1,146 market value. The bond pays interest semi-annually, has a yield-to-maturity...

A bond has a $1,000 face value and a $1,146 market value. The bond pays interest semi-annually, has a yield-to-maturity of 7.47 percent, and matures in 10 years. What is the current yield?

What is the current value of a 10-year semi-annual interest bond that has a $1,000 maturity...

What is the current value of a 10-year semi-annual interest bond that has a $1,000 maturity value, coupon rate of 10%, and the YTM is 10%? a.) $376.09 b.) $623.11 c.) $1,000.00 d.) $692.77 What is the current value of a 10-year semi-annual interest bond that has a $1,000 maturity value, coupon rate of 6%, and the YTM is 10%? a.) $750.76 b.) $376.89 c.) $373.87 d.) $1,000.00
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual...

25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 6% a. What...

A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 6% a. What is the bond's yield to maturity if the bond is selling for $1,080? (Do not round intermediate calculations. Round your answer to 3 decimal places.) % Yield to maturity b. What is the bond's yield to maturity if the bond is selling for $1,000? Print Yield to maturity ferences c.What is the bond's yield to maturity if the...

A 25 year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8% a. What...

A 25 year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8% a. What is the bond's yield to maturity If the bond is selling for $960? (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity b. What is the bond's yield to maturity If the bond is selling for $1,000? Yield to maturity c. What is the bond's yleld to maturity If the bond...