12. A $1,000 par value bond sells for $1,216. It matures in 20 years, has a...
| 12. A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 19 percent coupon, pays interest semiannually, and can be called in 5 years at a price of $1124. What is the bond's Yield -to-Call? |
Homework Answers
Yield to call is calculated using the RATE function as follows:-
=RATE(nper,pmt,pv,fv)
=RATE(5*2,19%/2*1000,-1216,1124)*2
=14.54%
Add Answer to:
12. A $1,000 par value bond sells for $1,216. It matures in 20
years, has a...
A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14...
A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14 percent coupon, pays interest semiannually. The bond's yield to maturity is: a. 11.26 Please explain using a financial calculator
A convertible bond is selling for $967, matures in 15 years, has a $1,000 face value,...
A convertible bond is selling for $967, matures in 15 years, has a $1,000 face value, pays interest semiannually, and has a coupon rate of 8 percent. Similar non-convertible bonds are priced to yield 4.25 percent per six months. The conversion ratio is 20. The stock currently sells for $47.50 a share. Calculate the convertible bond's option value.
Calculate the value of a bond that matures in 12 years and has a $1,000 par...
Calculate the value of a bond that matures in 12 years and has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 12 percent. The value of the bond is_____?
(Bond valuation) A bond that matures in 19 years has a $1,000 par value. The annual...
(Bond valuation) A bond that matures in 19 years has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? a. The value of this bond if it paid interest annually would be $ nothing. (Round to the...
A 1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 5 years...
A 1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 5 years and currently sells for $ 992.46 What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is
Coupon bond that pays interest of 8% annually has a par value of 1,000 matures in...
Coupon bond that pays interest of 8% annually has a par value of 1,000 matures in 20 years and is selling today at 1,200 ( or 120% ask price). Actual yield? Suppose that the bond is callable in 3 years at 100%. Therefore, the issuer has the right to buy the bond at par value after 2 years. In this case. what's the yield to call?
A $1,000 par value bond has a current price of $884.94 and a maturity value of...
A $1,000 par value bond has a current price of $884.94 and a maturity value of $1,000 and matures in 6 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate? The bond's annual coupon rate is (blank) % ? *round to 2 decimal places*
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest...
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 8 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest...
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 7 percent and the markets required yield to maturity on a comparable risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
A $1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 8 years...
A $1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 8 years and currently sells for $988.09. What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is % (Round to two decimal places.)
A $1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 8 years and currently sells for $988.09. What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is % (Round to two decimal places.)
Most questions answered within 3 hours.
-
Assume that capital markets are competitive and that the
international Fisher hypothesis holds. The one-year interest...
asked 22 minutes ago -
Solid potassium phosphate is slowly added to 150 mL of a 0.0518
M calcium nitrate solution....
asked 37 minutes ago -
(CO 2) A field can be added to a report to
values for two or more...
asked 2 hours ago -
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 2 hours ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 3 hours ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 3 hours ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 4 hours ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 5 hours ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 5 hours ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 6 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 6 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 5 hours ago