What is the coupon rate of a
ten-year,
$10,000
bond with semiannual coupons and a price of
$8,135.13,
if it has a yield to maturity of
7.57.5%?
Number of periods = 10 * 2 = 20
Rate = 7.5% / 2 = 3.75%
Price = Coupon * [1 - 1 / (1 + r)n] / r+ FV / (1 + r)n
8,135.13 = Coupon * [1 - 1 / (1 + 0.0375)20] / 0.0375+ 10000 / (1 + 0.0375)20
8,135.13 = Coupon * [1 - 0.478892] / 0.0375 + 4,788.923421
8,135.13 = Coupon * 13.896213 + 4,788.923421
Coupon = 240.80
Annual coupon = 240.80 * 2 = 481.6
Coupon rate = (481.6 / 10000) * 100
Coupon rate = 4.816%
What is the coupon rate of a ten-year, $10,000 bond with semiannual coupons and a price...
1. What is the yield to maturity of a eighteight-year, $10,000 bond with a 4.8% coupon rate and semiannual coupons if this bond is currently trading for a price of $8,740? 2.What is the present value (PV) of $100,000 received five years from now, assuming the interest rate is 99% per year? 3. What is the coupon rate of a eighteight-year, $10,000 bond with semiannual coupons and a price of $8,637.58, if it has a yield to maturity of 7.4%?...
PROBLEM 2 A/ Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and semiannual coupons is trading for 1,034.37. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? (Round to two decimal places.) b. If the bond's yield to maturity changes to 9.2% APR, what will be the bond's price? The new price for the bond is (Round to the nearest cent.) B/ Suppose a five-year, $ 1000 bond with annual coupons has...
Suppose a ten year, $1,000 bond with an 8.4 % coupon rate and semiannual coupons is trading for $1034.66. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding) b. if the bond's yield to maturity changes to 9.7% APR, what will be the bond's price.
Suppose a ten-year, $ 1000 bond with an 8.6 % coupon rate and semiannual coupons is trading for $1,035.22. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.3 %APR, what will be the bond's price?
Suppose a ten-year, $ 1,000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1,035.23. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.5 % APR, what will be the bond's price?
Suppose a ten-year, $1,000 bond with an 8.0 % coupon rate and semiannual coupons is trading for $1,034.74. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.0 % APR, what will be the bond's price?
Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for $1,034.44. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.5% APR, what will be the bond's price?
Suppose a ten-year, $1,000 bond with an 8.8 % coupon rate and semiannual coupons is trading for $1,034.43. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.3 % APR, what will be the bond's price?
Suppose a ten-year, $ 1000 bond with an 8.2 % coupon rate and semiannual coupons is trading for $ 1 035.55. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.6 % APR, what will be the bond's price? (please show all work)!
Suppose a ten-year $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.69. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. It the bond's yield to maturity changes to 9.4% APR what will be the bond's price? a. What is the bonds yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is % (Round to two decimal places.)