1.
It means that Bond will pay $1,000 at the maturity of the bond
2.
Coupon Rate = 8% means bond will pay Interest annually of amount 0.08(1,000) = $80
3.
Bond has maturity of 10 years, it means that bond will pay interest based on coupon rate annually till maturity and at maturity bod will pay face value.
4.
Coupon Rate is the interest paid annually and yield to maturity is the realized return on holding the bond, YTM is affected by buying price of bond but coupon rate is fixed.
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...
1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...
19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is 6.97 percent? A. $799.32 B. $848 16 C. $917.92 D. $1,005.46 E. None of the above.l 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is...
1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and eight years to maturity. The bond makes coupon payments every six months, and is currently priced at $1,055.85. What is the yield to maturity on this bond? Select one: a. 3.54% b. 6.95% c. 7.07% d. 7.49% e. 14.99% 2. What is the duration of a five-year bond with coupon rate of 8%, yield to maturity of 6%, semi-annual coupon payment, and face value...
A coupon bond has a face value of $1,000. with 4.83% coupon rate. It matures in 7 years, and has a yield to maturity of 7.33%. What is the price of the bond? please Submit your answers with 4 decimals after the dot.
Compute the duration of a bond with a face value of $1,000, a coupon rate of 7% (coupon is paid annually) and a maturity of 10 years as the interest rate (or yield to maturity) on the bond changes from 2% to 12% (consider increments of 1% - so you need to compute the duration for various yields to maturity 2%, 3%, …, 12%) . What happens to duration as the interest rate increases?
A 25 year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8% a. What is the bond's yield to maturity If the bond is selling for $960? (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Yield to maturity b. What is the bond's yield to maturity If the bond is selling for $1,000? Yield to maturity c. What is the bond's yleld to maturity If the bond...
A ten-year, zero-coupon bond with a yield to maturity of 6% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later. What is the rate of return of this investment, assuming the yield to maturity does not change? can someone explain step by step
A bond has a Face Value of $1,000 with a yearly coupon of $80 and maturity of 10 years. If Yield is 8%, what is the Price? You invest $10,000 at time zero in a project with expected Cash flows of $4,000 per year for the next 4 years. Compute NPV and IRR
A bond has a quoted price of $900 today. It has a face value of $1,000, coupon rate of 12%, and a time to maturity of 6 years. Coupons are paid every month. What is its yield to maturity?
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