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Formorian Inc. has two issued bonds (bond A and bond B) as part of its debt...
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...
The Shallow Company has two bonds outstanding. Bond A was issued exactly 5 years ago at a coupon rate of 9%. Bond Z was issued exactly 1 year ago at a coupon rate of 8%. Both bonds were originally issued with semi-annual coupon payments, terms of 20 years, and face values of $1,000. The current yield to maturity (YTM) is 7.5% for both bonds. Which of the following statements is LEAST correct? The internal rate of return (IRR) on Bond...
Consider two bonds. The first is a 6% coupon bond with six years to maturity, and a yield to maturity of 4.5% annual rate, compounded semi-annually. The second bond is a 2% coupon bond with six years to maturity and a yield to maturity of 5.0%, annual rate, compounded semi-annually. 1. Calculate the current price per $100 of face value of each bond. (You may use financial calculator to do question 1 and 2, I'm just unsure how to use...
You've created a small bond portfolio by investing excess corporate cash in two annual-coupon bonds. The YTM for both bonds is 7.5% Bond Q is a 5-year, 4.5% coupon with a $1,000 face value; current price of $878.62 Bond R is a 6-year, 9.5% coupon with a $1,000 face value; current price of $1,093.88 What is the portfolio duration, that is, the duration of both instruments considered together, using the prices of the bonds. (Hint: This is not just the...
ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
ABC Inc. recently issued $1,000 par bonds at a 2.1% coupon rate. If the bonds have 20 years to maturity and a YTM of 16.94%, what is the current price of the bond? Assume semi-annual compounding.Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
A bond has just been issued. The bond is currently selling for $1050. The bond will mature in 7 years. The bond’s annual coupon rate is 16% and the face value of the bond is $1,000. Coupons will be paid semi-annually. Excel Compute the bond’s annual yield to maturity.
ABC Inc. recently issued $1,000 par bonds at a 8.40% coupon rate. The bonds have 18 years to maturity and the current price is $1,099. If the call price is $1,150 and the bond can be called in 12 years, what is the yield to call? Assume semi-annual compounding. Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
Amazon has issued 22-year semi-annual coupon bonds that have seven years left until maturity. If the coupon rate is 6.70%, and the YTM is 6.80%, what is the current bond price?