21)
Bond price at 5.5% interest rate is $1,046.01
Bond price at 5.7% interest rate is $1,027.28
Hence, correct option is A) -1.79 percent [(1,027.28-1,046.01)/1,046.01]
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21) A 13-year, 6 percent coupon bond pay year, 6 percent coupon bond pays interest semiannually....
21) A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value 21) of $1,000. What is the peréentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent? A)-1.79 percent C)-1.38 percent B) 1.79 percent D)-1.64 percent 22) This morning,. you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The loan is to be repaid in equal...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent? A) 1.97 percent increaseB) 1.79 percent increaseC) 1.79 percent decreaseD) 1.6 percent decreaseE) 1 percent decrease I need to solve it with this calcualter , please, ( Texas Instruments - BA II Plus) step by...
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 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...
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...
A bond pays a coupon (or interest) rate of 5 percent each year for five years, with a future (face) value of $200. If the bond were sold today, what would be the present value of the bond? Multiple Choice $145 $157 $200 $150
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 15 years. If the bond is selling for $968.82, what is its yield to maturity?
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You purchased a zero coupon bond one year ago for $296.50. The market interest rate is now 6.5 percent. If the bond had 15 years to maturity when you originally purchased it, what is your total return to date if the face value of the bond is $1,000? (Hint: Use the information provided to calculate the price of the zero coupon bond today.) A) 37.74 percent B) 27.40 percent C) 23.35 percent D) 19.95 percent E) 32.58 percent