A $35,000, 5% bond that matures in 10 years has interest payable semiannually. If the quoted...

Question

Question

A $35,000, 5% bond that matures in 10 years has interest payable semiannually. If the quoted price is $36,500, what is the yield rate?

Answer 1

Answer #1

COUPON RATE 5.00% YEARS TO MATURITY 10 NPER 20 (years to maturity x 2) PMT 875 (face value x coupon rate)/2 FACE VALUE $35,00

Answer 2

Similar Homework Help Questions

A $40,000, 8% bond that matures in 6 years has interest payable semiannually. If the quoted...

A $40,000, 8% bond that matures in 6 years has interest payable semiannually. If the quoted price is $38,000, what is the yield rate?
An EAL bond has a coupon rate of 16 percent, pays interest semiannually, and matures in...

An EAL bond has a coupon rate of 16 percent, pays interest semiannually, and matures in 15 years. If the bond is selling for $968.82, what is its yield to maturity?
An EAL bond has a coupon rate of 16 percent, pays interest semiannually, and matures in...

An EAL bond has a coupon rate of 16 percent, pays interest semiannually, and matures in 15 years. If the bond is selling for $968.82, what is its yield to maturity?

A 10% coupon bond that pays coupons semiannually, matures in 5 years, and its yield-to-maturity is...

A 10% coupon bond that pays coupons semiannually, matures in 5 years, and its yield-to-maturity is 8%. The bond has a face value of $1000. What is the intrinsic value of the bond today?
a) A level-coupon bond carries a coupon rate of 6 percent, payable semiannually, has 10 years...

a) A level-coupon bond carries a coupon rate of 6 percent, payable semiannually, has 10 years until maturity, and the yield to maturity is 8 percent. (i) What interest payments do bondholders receive each year? (ii) At what price does the bond sell? (iii) What will happen to the bond price if the yield to maturity falls to 5 percent? b) The British government’s outstanding perpetual bonds have annual coupon payments of $25, payable annually. The market interest rate today...
Consider a 10% coupon issue that matures in 10 years and 2 months, interest is paid...

Consider a 10% coupon issue that matures in 10 years and 2 months, interest is paid semiannually and investors require a quoted 8% yield-to-maturity. Suppose that as of the next interest date, the bond will have 10 years of life remaining. What should this bond sell for?

4. An Earl Enterprises bond has an 8 percent coupon, pays interest semiannually, and matures in...

4. An Earl Enterprises bond has an 8 percent coupon, pays interest semiannually, and matures in six years at $1,000. If the current market price is $911.33, what is the yield to maturity for this bond?
A coupon bond that pays interest semiannually has a par value of $1000, matures in 9...

A coupon bond that pays interest semiannually has a par value of $1000, matures in 9 years, and has a yield to maturity of 6%. If the coupon rate is 7%, the intrinsic value of the bond today will be
1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10...

1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...

1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10...

1. A corporate bond has a 12 percent coupon, pays interest semiannually, and matures in 10 years at $1,000. If the investor's required rate of return is 14 percent, what should the current market price of the bonds be? 2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend...