Mercy Corporation"s bond have 15years to maturity, an 8.75% coupon paid semi- annually, and a $1,000...
Mercy Corporation"s bond have 15years to maturity, an 8.75% coupon paid semi- annually, and a $1,000 par value.The bond has a 6.5% nominal yield to maturity, but it can be cslled in 6years at a price of $1,050. What is the bond's nominal yield to call?
Homework Answers
Par Value =1000
Number of Periods =15*2 =30.
semi annual coupon =8.75%*1000/2 =43.75
Price of Bond =PV of Coupons+PV of Par Value
=43.75*((1-(1+3.25%)^-30)/3.25%)+1000/(1+3.25%)^30 =1213.55
Number of Periods of call =6*2 =12
Call Price =1050
YTC using financial calculator
N=12;PMT=43.75;PV=-1213.55;FV=1050;CPT I/Y =2.316%
YTC =2*2.316% =4.63%
Add Answer to:
Mercy Corporation"s bond have 15years to maturity, an
8.75% coupon paid semi- annually, and a $1,000...
A company’s bonds have 15 years to maturity, a 7.6% coupon rate paid semi-annually, and a...
A company’s bonds have 15 years to maturity, a 7.6% coupon rate paid semi-annually, and a $1,000 par value. The bonds have a 7% nominal yield to maturity, but can be called in 6 years at a price of $1,120. What is the nominal yield to call (YTC) on these bonds? Show your work.
keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually,...
keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually, and a $1,000 par value. The bond has a 6% nominal annual yield to maturity, but it can be called in 5 years at a price of $1,050. What is the bond's nominal yield to call?
A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The...
A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a call price of $1,050. The bond has a nominal yield to call of 6.5 percent. What is the bond's yield to maturity, stated on a nominal, or annual basis? a.5.97% b.6.30 % c. 6.75% d.6.95 % 0 .7.10 %
keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually,...
keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually, and a $1,000 par value. The bond has a 6% nominal annual yield to maturity, but it can be called in 5 years at a price of $1,080. What is the bond's nominal yield to call?
A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called...
A 20 year, 8% semi-annual coupon bond with a
par value of $1,000 may be called in 10
years at a call price of $1,100. The bond sells for
$1,200.
e. How would the price of
the bond be affected by a change in the going market interest
rates?
Please show work ( by adding numbers or CELL with
formula if needed). Thank you, will rate.
L M N I e a A 20 year, 8% semi-annual coupon bond with...
A corporation's bonds have a 15 year maturity, a 7% annual coupon paid semi-annually and a...
A corporation's bonds have a 15 year maturity, a 7% annual coupon paid semi-annually and a par value of 1000. The yield to maturity is quoted as 6% in the financial press. What is the bond's price?
4. A 20-year maturity $1,000 par value 9% coupon bond paying coupons annually is callable in...
4. A 20-year maturity $1,000 par value 9% coupon bond paying coupons annually is callable in five years at a call price of $1,050. The bond currently sells at a yield to maturity of 8%. What is the yield to call? .01
A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5...
A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5 years until it matures. The current yield to maturity is 7% a. What is the price of the bond? ___________ b. What is the amount of the annual interest paid to the bondholder? ___________ c. Is this a discount bond or a premium bond? ______________________
Madsen Motors's bonds have 5 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 6.5%; and the yield to maturity is 13%. What is the b...
Madsen Motors's bonds have 5 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 6.5%; and the yield to maturity is 13%. What is the bond's current market price? Round your answer to the nearest cent.
A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current...
A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current value of $1,036.09, and 3 years until the first call date. What is the call price if the yield to call is 6.5 percent? A STRIPS has a yield to maturity of 6.2 percent, a par value of $25,000, and a time to maturity of 10 years. What is the price
A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a call price of $1,050. The bond has a nominal yield to call of 6.5 percent. What is the bond's yield to maturity, stated on a nominal, or annual basis? a.5.97% b.6.30 % c. 6.75% d.6.95 % 0 .7.10 %
A 20 year, 8% semi-annual coupon bond with a
par value of $1,000 may be called in 10
years at a call price of $1,100. The bond sells for
$1,200.
e. How would the price of
the bond be affected by a change in the going market interest
rates?
Please show work ( by adding numbers or CELL with
formula if needed). Thank you, will rate.
L M N I e a A 20 year, 8% semi-annual coupon bond with...
4. A 20-year maturity $1,000 par value 9% coupon bond paying coupons annually is callable in five years at a call price of $1,050. The bond currently sells at a yield to maturity of 8%. What is the yield to call? .01
Most questions answered within 3 hours.
-
Engineers must consider the breadths of male heads when
designing helmets. The company researchers have determined...
asked 7 minutes ago -
In the Williamson Ether Synthesis of Phenacetin from
Acetaminophen, sodium methoxide in methanol and 100% ethanol...
asked 11 minutes ago -
If the spin of the earth suddenly changed to spin in the
opposite direction, what effect...
asked 25 minutes ago -
An orb weaver spider with a mass of 0.23 grams hangs vertically
by one of its...
asked 21 minutes ago -
Determine the sample size required to estimate the mean score on
a standardized test within
2...
asked 43 minutes ago -
The idea that one can remain relatively 'anonymous' on the
internet if they so choose, for...
asked 30 minutes ago -
In the reaction of N2 and H2 to produce
NH3, how many moles of H2 will...
asked 31 minutes ago -
When a certain coin is flipped, the probability of
obtaining a tails is 0.55. Which of...
asked 29 minutes ago -
Can you show how a sulfonic acid group
is introduced into an aromatic ring by Friedal...
asked 34 minutes ago -
Implement the Smith-Waterman algorithm in C that accepts a
substitution matrix.
You may assume the substitution...
asked 34 minutes ago -
The equilibrium constant Kp for the reaction
C(s)+H2O(g)⇌CO(g)+H2(g) is 2.44 at 1000 K. What are the...
asked 46 minutes ago -
HACKING
1: Discuss the tricks of hacking in 300 words.
2: Explain in you own words...
asked 47 minutes ago