Homework Answers
YTM is calculated using RATE function in Excel with these inputs :
nper = 8*2 (8 years to maturity with 2 semiannual coupon payments each year)
pmt = 10000 * 4.6% / 2 (semiannual coupon payment = face value * annual coupon rate / 2. This is a positive figure as it is an inflow to the bondholder)
pv = -9572 (Current bond price. This is a negative figure as it is an outflow to the buyer of the bond)
fv = 10000 (face value of the bond receivable on maturity. This is a positive figure as it is an inflow to the bondholder)
The RATE calculated is the semiannual YTM. To calculate the annual YTM, we multiply by 2. Annual YTM is 5.26%
YTM of bond is 5.26%
Add Answer to:
What is the yield to maturity of a eight-year, $10,000 bond with a 4.6% coupon rate...
1. What is the yield to maturity of a eighteight-year, $10,000 bond with a 4.8% coupon rate and semiannual coupons if...
1. What is the yield to maturity of a eighteight-year, $10,000 bond with a 4.8% coupon rate and semiannual coupons if this bond is currently trading for a price of $8,740? 2.What is the present value (PV) of $100,000 received five years from now, assuming the interest rate is 99% per year? 3. What is the coupon rate of a eighteight-year, $10,000 bond with semiannual coupons and a price of $8,637.58, if it has a yield to maturity of 7.4%?...
A bond has eight years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield...
A bond has eight years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,639? O A. 7.71% OB. 13.5% O C. 11.57% OD. 9.64%
What is the yield to maturity of a five-year, $5,000 bond with a 4.4% coupon rate...
What is the yield to maturity of a five-year, $5,000 bond with a 4.4% coupon rate and semiannual coupons if this bond is currently trading for a price of $ 4836? A. 5.15% B. 7.21% C. 2.58% D. 6.18%
What is the yield to maturity of a ten-year, $1,000 bond with a 5.2% coupon rate...
What is the yield to maturity of a ten-year, $1,000 bond with a 5.2% coupon rate and semiannual coupons if this bond is currently trading for a price of $884? Please show all steps and explain what everything means
What is the yield to maturity of a five-year, $ 5,000 bond with a 4.7% coupon...
What is the yield to maturity of a five-year, $ 5,000 bond with a 4.7% coupon rate and semiannual coupons if this bond is currently trading for a price of $ 4, 787? A. 2.85% B. 7.97% C. 5.69% D. 6.83%
Suppose a seven-year, $1,000 bond with a 10.66% coupon rate and semiannual coupons is trading with a yield to maturity of 8.74%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond
Suppose a seven-year, $1,000 bond with a 10.66% coupon rate and semiannual coupons is trading with a yield to maturity of 8.74%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain.b. If the yield to maturity of the bond rises to 9.45% (APR with semiannual compounding), at what price will the bond trade?
What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate...
What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi-annual coupons if this bond is currently trading for a price of S4876? a 4.5% A. 5.07% Ο B. 4.30% ОС. 8.60% OD. 4.50% E. 6.30% aprice of
7.) The yield to maturity of a $ 1,000 bond with a 6.7 % coupon rate,...
7.) The yield to maturity of a $ 1,000 bond with a 6.7 % coupon rate, semiannual coupons, and two years to maturity is 7.7 % APR, compounded semiannually. What is its price? The price of the bond is $ __ 8.) Suppose a ten-year, $ 1 comma 000 bond with an 8.4 % coupon rate and semiannual coupons is trading for $ 1 comma 035.89. a. What is the bond's yield to maturity (expressed as an APR with semiannual...
8.) What is the yield to maturity of a five-year, $ 5, 000 bond with a...
8.) What is the yield to maturity of a five-year, $ 5, 000 bond with a 4.8% coupon rate and semiannual coupons if this bond is currently trading for a price of $ 4, 785? 9.) Which of the following bonds is trading at a premium? A.a 15minusyear bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semiannually B.a tenminusyear bond with a $4,000 face value whose yield to maturity...
1.URGENT What must be the price of a $ 5 comma 000 bond with a 6.6%...
1.URGENT What must be the price of a $ 5 comma 000 bond with a 6.6% coupon rate, semiannual coupons, and eight years to maturity if it has a yield to maturity of 9% APR? 2. What is the yield to maturity of a lightweight-year,$ 10 comma 000$10,000 bonds with a 4.84.8% the coupon rate and semiannual coupons if this bond is currently trading for a price of $ 9 comma 033$9,033?
A bond has eight years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,639? O A. 7.71% OB. 13.5% O C. 11.57% OD. 9.64%
What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi-annual coupons if this bond is currently trading for a price of S4876? a 4.5% A. 5.07% Ο B. 4.30% ОС. 8.60% OD. 4.50% E. 6.30% aprice of
Most questions answered within 3 hours.
-
1. When a nearsighted person looks at an object that is in the
distance with their...
asked 30 minutes ago -
QUESTION 8
Both of these statements will store the same value in the
variable $number
$number...
asked 55 minutes ago -
The price of 1 lb of potatoes is $1.75. If all the potatoes sold
today at...
asked 1 hour ago -
Garcia Company issues 20.00%, 15-year bonds with a par value of
$470,000 and semiannual interest payments....
asked 1 hour ago -
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 2 hours ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 3 hours ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 4 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 5 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 6 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 6 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 7 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 7 hours ago