YTM = [Coupon Amount+ (Par value- Price current)/period]/(Par value+Current price)/2
Coupon amount =1000*6%*3/12 i.e.15
Period =20*12/3 i.e. 80period
YTM =[15+(1000-895/80]/(1000+895)/2
= 16.3125/947.50 i.e.1.7216% quarterly or 6.886%p.a.
YTC = [Coupon Amount+ (Call value- Price current)/period]/(Call value+Current price)/2
Coupon amount =1000*6%*3/12 i.e.15
Period i.e. number of year to call =3*12/3 i.e. 12period
Call value =1000*120% i.e.1200
YTM =[15+(1200-895/12]/(1200+895)/2
= 40.4167/1047.50 i.e.3.858% quarterly or 15.433%p.a.
the top two are together Bridge Water Inc. has a bond issue outstanding with a $1,000...
BridgeWater Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 20 years. The bonds have an annual coupon rate of 6.0% with quarterly coupon payments. The current market price for the bonds is $895. The bonds may be called in 3 years for 120% of par. a) What is the quoted annual yield-to-maturity for the bonds? b) What is the quoted annual yield-to-call for the bonds?
36 Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 23 years. The bonds have an annual coupon rate of 18.0% with semi-annual coupon payments. The current market price for the bonds is $845. The bonds may be called in 3 years for 118.0% of par. What is the quoted annual yield-to-maturity for the bonds? 10.67% 21.34% 23.87% 30.32% 38.91%
Question 15 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 20% with semi-annual coupon payments. The bond is currently selling for $857. The bonds may be called in 6 years for 124% of par value. What is the quoted annual yield-to- call for these bonds assuming the company calls the bonds as soon as possible? O...
need answers for 13 and 14 Question 13 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 15% with semi-annual coupon payments. The bond is currently selling for $856. The bonds may be called in 3 years for 117% of par value. What is the quoted annual yield-to- maturity for these bonds? 26.30% 8.79% 19.25% 17.58% 34.44%...
need help with question 14 and 15 Question 14 (4 points) XZYY, Inc. currently has an issue of bonds outstanding that will mature in 17 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 14% with annual coupon payments. The bond is currently selling for $1167. The bonds may be called in 3 years for 116% of par value. What is your expected quoted annual rate of return if you buy the bonds...
Question 19 (3.5 points) Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 28 years. The bonds have an annual coupon rate of 12.0% with quarterly coupon payments. You would expect a quoted annual return of 13.0% if you purchased these bonds. What are the bonds worth to you? O $954.38 O $925.22 $1,080.29 O $954.49 $3,617.42
DMC Inc. is planning to issue a $1,000 face-value bond with an annual coupon rate of 10% that matures in 20 years. DMC is planning to pay semi-annual interest payments. Similar DMC bonds are quoting at 95% of par. What is yield to maturity for this bond? 5.3% 11.2% 7.5% 10.6% None of the above
7.4 Quantitative Problem: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.8% with semiannual payments of $39, and a par value of $1,000. The price of each bond in the issue is $1,260.00. The bond issue is callable in 5 years at a call price of $1,078. What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places. What is the bond's nominal annual...
1. A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with...
Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 18 years. The bonds have an annual coupon rate of 17.0% with semi-annual coupon payments. You would expect a quoted annual return of 10.0% if you purchased these bonds. What are the bonds worth to you? Question 12 options: $610.07 $1,649.46 $1,579.14 $1,409.14 $2,985.62