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Problem 6-15 (LG 6-2) A $1,800 face value corporate bond with a 5.7 percent coupon (paid...
Check my work A $2,300 face value corporate bond with a 6.2 percent coupon (paid semiannually) has 12 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 6.7 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 8.0 percent. What will be the change in the bond's price in dollars and percentage terms? (Negative...
Cant seem to figure this out, thank you! A $2,900 face value corporate bond with a 6.8 percent coupon (paid semiannually) has 12 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.3 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 8.8 percent. What will be the change in the bond's price in...
A corporate bond with a 5 percent coupon has 10 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 8.0 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 9 percent. What will be the change in the bond's price in dollars? Assume interest payments are paid semiannually and par value is $1,000.
A 1k face value corparate bond with a 6.5% coupon ( paid semianually) has 15 years left to mature. It has had a credit rating of BBB and a yeild to maturity of 7.2%. The firm has recently gotten into some trouble and th ratying agency is downgrading the bonds to BB. the new appropriate discount rate will be 8.5%. What will be the change in the bonds price in dollars and percentge terms? Using excel formula please.
A corporate bond with a 5.75 percent coupon has 15 years left to maturity. It has had a credit rating of BB and a yield to maturity of 6.25 percent. The firm has recently gotten more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 6.00 percent. What will be the change in the bond's price in dollars? (Assume interest payments are paid semiannually and a par value of $1,000.)
A corporate bond with a 3.95% coupon has 21 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 5.35%. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate for a bond with this level of credit risk and time to maturity is 6.55%. What will be the net change in the bond’s price in dollars if this...
A corporate bond with a 3.95% coupon has 21 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 5.35%. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate for a bond with this level of credit risk and time to maturity is 6.55%. What will be the net change in the bond’s price in dollars if this...
A 8.6 percent coupon (paid semiannually) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $915. value: 25.00 points Calculate the yield to maturity on the following bonds. a. A 8.6 percent coupon (paid semiannually) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $915. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) Yield to maturity % per...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent? A) 1.97 percent increaseB) 1.79 percent increaseC) 1.79 percent decreaseD) 1.6 percent decreaseE) 1 percent decrease I need to solve it with this calcualter , please, ( Texas Instruments - BA II Plus) step by...
Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 12 percent. a. What is the price of the bond? b. If the rate of interest increases 1 percent, what will be the bond's new price? c. Using your answers to parts (a) and (b), what is the percentage change in the bond's price as a result of the 1 percent increase in interest rates? (Negative value should...