Consider a 11-year, 6% annual coupon $1000 par bond currently trading at par. Suppose that the...
Consider a 11-year, 6% annual coupon $1000 par bond currently trading at par. Suppose that the bond is callable in 2 years at 102% par. What is the bond's yield to call? Assume annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321
Homework Answers
Yield to call is calculated using the RATE function:-
=RATE(nper,pmt,pv,fv)
=RATE(2,6%*1000,-1000,102%*1000)
=0.0697
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Consider a 11-year, 6% annual coupon $1000 par bond currently
trading at par. Suppose that the...
Consider a 11-year, 6% annual coupon $1000 par bond currently trading at par. Suppose that the bond is callable in 2 yea...
Consider a 11-year, 6% annual coupon $1000 par bond currently trading at par. Suppose that the bond is callable in 2 years at 102% par. What is the bond's yield to call? Assume annual compounding. Round your answer to 4 decimal places.
What is the current yield for a 12-year 8% coupon bond with a par value of...
What is the current yield for a 12-year 8% coupon bond with a par value of $1,000 that is selling for $928.27? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
Suppose a security pays $100 in 6 months, and is currently trading at $96.99. What is...
Suppose a security pays $100 in 6 months, and is currently trading at $96.99. What is the annual percentage rate on this security? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
Suppose a security pays $100 in 3 months, and is currently trading at $96.55. What is...
Suppose a security pays $100 in 3 months, and is currently trading at $96.55. What is the effective annual rate on this security? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
A 20-year bond with a coupon rate of 8% and par value of $1000 currently has...
A 20-year bond with a coupon rate of 8% and par value of $1000 currently has a yield to maturity of 6%. The bond is callable in 5 years with a call price of $1100. What is the bond’s yield to call? A zero-coupon bond with 10 years remaining until maturity and a par value of $1000 has a yield to maturity of 10%. What is the bond’s price? (Financial calculator please)
2) A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments....
2) A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to worst of this bond when it is released? 3) A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments....
Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual...
Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. If the bond is currently trading for $1040.79, then its yield to call is closest to: Group of answer choices 3.8% 7.0% 7.6% 8.0%
Suppose a 14 year, 5%, semiannual coupon bond with a par value of $1000 is currently...
Suppose a 14 year, 5%, semiannual coupon bond with a par value of $1000 is currently selling for $950. The bond can be called in another 3 years for $1075. Whould you be more likely to earn the yield to call or the yield to maturity? Yield to call because the current price is below the call price. Yield to call because the coupon rate is above the yield to maturity. Yield to maturity because the current price is below...
Suppose a seven-year, $1,000 bond with a 11.94 % coupon rate and semiannual coupons is trading...
Suppose a seven-year, $1,000 bond with a 11.94 % coupon rate and semiannual coupons is trading with a yield to maturity of 9.79 %. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 10.26 % (APR with semiannual compounding), at what price will the bond trade? a. Is this bond currently trading at a discount, at par, or at a premuim? Explain....
General Electric has just issued a callable (at par) 10-year, 6.4% coupon bond with annual coupon...
General Electric has just issued a callable (at par) 10-year, 6.4% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $102.01. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst? rui a. What is the bond's yield to maturity? The bond's yield to maturity is % (Round...
General Electric has just issued a callable (at par) 10-year, 6.4% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $102.01. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst? rui a. What is the bond's yield to maturity? The bond's yield to maturity is % (Round...
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