Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.25% APR....
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.25% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,055.00
What is the 6-month return for holding the bonds until maturity (r^' or y^')?
Given your answer to the 6-month return, what is the yield to maturity (as an APR) for holding the bond?
Given your answer to the 6-month return, what is the yield to maturity (as an EAR) for holding the bond
Homework Answers
Add Answer to:
Cinqua Terra Incorporated issued 10-year bonds three years ago
with a coupon rate of 7.25% APR....
17/18 Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.75%...
17/18
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.75% APR. The bonds pay semi- annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,074.00 Given your answer to the 6-month return, what is the yield to maturity (as an EAR) for holding the bond? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal...
Five years ago, Winter Tire Corp. issued a bond with a 12% coupon rate, semi-annual coupon...
Five years ago, Winter Tire Corp. issued a bond with a 12% coupon rate, semi-annual coupon payments, $1,000 face value, and 15-years until maturity. a) You bought this bond two years ago (right after the coupon payment) when the yield-to-maturity was 12%. How much did you pay for the bond? b) If the yield-to-maturity is 15% now, what is the value of the bond today (next coupon payment is in 6 months from today)? c) If you sold the bond...
Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The...
Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semi-annual payments and have a standard par value of $1,000. The YTM on these bonds is 4.5 percent. What is the current price of the bond? Settlement date (MM/DD/YYYY) Maturity date (MM/DD/YYYY) Years to Maturity (# of years) Coupon rate (%) Coupons per year (# per year) Face value (% of par) Yield to maturity (%) Par value ($)
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate...
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate is 7.6% and the yield to maturity is 6.4%. What is the bond's price assuming no default? [Provide your answer rounded to two digits.]
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and m...
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and maturity to these Corp-X bonds are being issued at par with a coupon rate of 5.5% per year(paid semi annually) 1. At the time that Corp-X bonds were issued, what was the Yield to Maturity of the bonds? And What is the current...
ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond...
ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM? ABC issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM? A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity...
A bond was issued three years ago at a price of $946 with a maturity of...
A bond was issued three years ago at a price of $946 with a maturity of six years, a yield-to-maturity (YTM) of 6.25% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has fallen to 5.00% compounded semi-annually?
2 years ago, you acquired a 10-year 0% coupon, $1000 face value bond at a YTM...
2 years ago, you acquired a 10-year 0% coupon, $1000 face value bond at a YTM of 12%. Today, you sold this bond at a YTM of 8%. Calculate your annualized Horizon Yield [HY] Assuming sem-annual compounding: answer 28.7842% With a financial calculator, how do you find this? Bonds of RCY Corporation with a face value of $1000 sells for $960, mature in 5 years, and have a 7% coupon rate paid semiannually. Calculate the investor's RCY by assuming the...
1. Company B had issued 10-year bonds a year ago at the coupon rate 6%. The...
1. Company B had issued 10-year bonds a year ago at the coupon rate 6%. The bond makes annual payments. The yield to maturity (YTM) of these bonds is 5%. The face value of the bond is $1000.Calculate the current bond price. 2. During 2017, company XYZ had sales 263658; costs 142213; depreciation expense 36358; interest expense 11698; tax rate 35 percent.Given this information what is company XYZ net income. 3. Company B has a second debt issue on the...
A bond was issued three years ago at a price of $1,064 with a maturity of...
A bond was issued three years ago at a price of $1,064 with a maturity of six years, a yield-to-maturity (YTM) of 8.25% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has risen to 9.50% compounded semi-annually? Question 13 options: $903 $928 $953 $978 $1,003
17/18
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.75% APR. The bonds pay semi- annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,074.00 Given your answer to the 6-month return, what is the yield to maturity (as an EAR) for holding the bond? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal...
Most questions answered within 3 hours.
-
Write a command line to view the long listing of all files,
including hidden files, with...
asked 28 minutes ago -
What kind of experiment would allow you to test that the
posterior cytoplasm can cause the...
asked 7 minutes ago -
Code in C++ please!
Write a function that takes an array of integers as an input...
asked 8 minutes ago -
Predict the reactions, if any, when the
following hydrogen compounds are added to water, and
explain...
asked 28 minutes ago -
What is the expression for the uncertainty in the total energy
Etot of equation?
Assume an...
asked 31 minutes ago -
A sledge loaded with bricks has a total mass of 18.5 kg and is
pulled at...
asked 23 minutes ago -
In response to the increasing weight of airline passengers, the
Federal Aviation Administration told airlines to...
asked 31 minutes ago -
Events A and B are independent. Suppose event A occurs with
probability 0.63 and event B...
asked 41 minutes ago -
Rubies are essentially alumina Al2O3 with a contaminant of
chromium in the form of Cr2O3. A...
asked 49 minutes ago -
Write a full program that will accept
exactly three command line arguments
that can be interpreted as...
asked 51 minutes ago -
1.histones are proteins that make up nucleosomes. they bind to
the backbone of DNA in chromosomes....
asked 1 hour ago -
What is the relationship between a variables value and their
probabilities as it is summarized by...
asked 1 hour ago