ZuoTi.Pro
Question

If an Allied Chemical zero coupon bond due in 12 years is selling for $420.00, what...

If an Allied Chemical zero coupon bond due in 12 years is selling for $420.00, what is its yield to maturity? Hint: 1) There is no coupons paid. Only par amount of 1000 is paid at maturity. 2) use excel Rate function.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer is 7.50%

RkQY9wp0CUAAAAAElFTkSuQmCC

0 0
Add a comment
Know the answer?
Add Answer to:
If an Allied Chemical zero coupon bond due in 12 years is selling for $420.00, what...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question Find the equilavent years to maturity ofa zero-coupon bond to one that has a coupon...

    Question Find the equilavent years to maturity ofa zero-coupon bond to one that has a coupon rate of 8.60%, 5 years to maturity and a yield to maturity of 9.20% Find the equilavent years to maturity of a zero-coupon bond to one that has a coupon rate of 660% (annual coupons) 10 years to maturity, and a yield to maturity 3 of 6.00%. Find the approximate percentage change in the price of a bond due to a 10 basis point...

  • Please explain how to solve these problems without using excel. A zero coupon bond has a...

    Please explain how to solve these problems without using excel. A zero coupon bond has a par value of $10,000 and a current price of $7,400. If the bond has 8 years to maturity, what is its yield to maturity? A. 2.6% B. 2. 9% C. 3.2% D. 3.6% E. 3.8% A 20-year bond with an 8% coupon rate (paid semi-annually) and $1000 par value for $1080. What is the effective annual yield? A. 7.0% B. 7. 2% C. 7.4%...

  • A $1000 par value bond with 6 years to maturity pays semi-annual coupons at a rate of 12% APR, with next coupon paid 6-m...

    A $1000 par value bond with 6 years to maturity pays semi-annual coupons at a rate of 12% APR, with next coupon paid 6-months from today. If the bond is currently priced at $1,049.35, what is it's yield to maturity?

  • 1. The following table summarizes prices of various default-free, zero-coupon bonds (expressed as a percentage of...

    1. The following table summarizes prices of various default-free, zero-coupon bonds (expressed as a percentage of face value): Maturity (years) Price (per $100 face value) $95.51 9105 $86.38 $81.65 $76.51 (a) Compute the yield to maturity for each bond. (b) Plot the zero-coupon yield curve (for the first five years). (c) Is the yield curve upward sloping, downward sloping, or flat? 2. Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield...

  • 1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and...

    1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and the par value is 1000. the bond is callable in 2 years at a call price of $1050. the price of the bond today is $1075. what is the bonds yield to call? 2. midea cooperation bonds mature in 3 years and have a yield to maturity of 8.5%. the par value is 1000. the bond has a 10% coupon rate and pay interest...

  • ABC's 15-year bond is selling for $875 today. This bond has a par value of $1000....

    ABC's 15-year bond is selling for $875 today. This bond has a par value of $1000. It has a coupon rate of 8 percent per year. What is its yield to maturity, if it has 11 years before expiration? (Answer must be in excel) c. At what price will the yield to maturity equal to the coupon rate?

  • a) The price of a 4-year zero coupon government bond is 79.81. What is the yield...

    a) The price of a 4-year zero coupon government bond is 79.81. What is the yield to maturity (effective annual yield) on the 4-year bond? b) The price of a 3-year zero coupon government bond is 85.16. What is the yield to maturity (effective annual yield) on the 3-year bond? The prices of 1, 2, 3, and 4-year zero coupon government bonds are 95.42, 90.36, 85.16, and 79.81, respectively. What is the implied 2-year forward rate between years 2 and...

  • 1) The yield on a corporate bond is 12%, and it is currently selling at par....

    1) The yield on a corporate bond is 12%, and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 10% is available. Which security is a better buy? 2) Following are the features of a mortgage loan: Loan amount $100,000 Nominal interest rate 6.2% Term – 30 years (Fixed) Required: (a) Calculate the required monthly mortgage payment. (b) Calculate the amount of interest and the repayment of...

  • a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

    a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5% (paid semiannuall) on a $1000 par value. if it is currently selling in the market for $1140, what is its yield to maturity? 9.18% 8.23% 7.89% 6.84%

  • Question 11: a) The price of a 4-year zero coupon government bond is 79.81. What is...

    Question 11: a) The price of a 4-year zero coupon government bond is 79.81. What is the yield to maturity (effective annual yield) on the 4-year bond? b) The price of a 3-year zero coupon government bond is 85.16. What is the yield to maturity (effective annual yield) on the 3-year bond? c) The prices of 1, 2, 3, and 4-year zero coupon government bonds are 95.42, 90.36, 85.16, and 79.81, respectively. What is the implied 2-year forward rate between...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT