How to calculate coupon bond's Yields to Maturity? Table 1 Yields to Maturity on a 10%-coupon-Rate...

Question

Question

How to calculate coupon bond's Yields to Maturity?

Table 1 Yields to Maturity on a 10%-coupon-Rate Bond Maturing in Ten Years (Face Value = $1,000) Price of Bond (s) Yield to M

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

In calculator take inputs:

PV = price of bond = -1200

PMT = coupon amount = 1000 * 10% = 100

FV = maturity value = face value of bond = 1000

N= years to maturity = 10

Then:

I/Y = 7.13% (yield to maturity)

Similarly for other bonds.

Add a comment

Answer 2

Similar Homework Help Questions

1. The term structure of interest rates refers to the relationship between _____. a bond's time to maturity and its coupon rate a bond's age since issue and its coupon rate a bond's age si...

1. The term structure of interest rates refers to the relationship between _____. a bond's time to maturity and its coupon rate a bond's age since issue and its coupon rate a bond's age since issue and its yield a bond's time to maturity and its yield. 2. The yield on 12-month treasury bills is 1.4% and the yield on 2-year treasury STRIPS is 2%. a. What is the implied 1-year forward rate one year from now? 3. The term...
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...
1. What is the bond's yield to maturity? 2. What happens to the bond's yield to...

1. What is the bond's yield to maturity? 2. What happens to the bond's yield to maturity if the bond matures in 20 years? 3. What if it matures in 5 years? (Yield to maturity) A bond's market price is $1,200. It has a $1,000 par value, will mature in 10 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually. What is the bonds yield to maturity? What happens to the...

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price =...

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price = $1,100 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,030.00 What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date? A. 0.62% B. 0.63% C. 2.75% D. -0.31% E. 2.73%
Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year 2 years 3 years 4 years 5 years Zero-Coupon Yields 4.30% 4.70% 5.00% 5.20% 5.50% What is the price of a three-year, default-fr

Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity1 year2 years3 years4 years5 yearsZero-Coupon Yields4.30%4.70%5.00%5.20%5.50%What is the price of a three-year, default-free security with a face value of $1,000 and an annual coupon rate of 8%? What is the yield to maturity for this bond?
1a. Calculate the price of a bond where the coupon rate is 5% (pays annually), the...

1a. Calculate the price of a bond where the coupon rate is 5% (pays annually), the market interest rate is 4%, and the life of the bond is 10 years. 1b. Suppose that you have an annual pay 7-year bond with a price of $1,100, paying a 4.5% coupon, with a face value of $1,000. What is the bond’s yield to maturity (YTM)? 1c. A bond sells for $900 today. Its coupon rate is 3%. The expected price in one...

Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of $941.23. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 10%

Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of $941.23.a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 10% APR, what will the bond's price be?
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and...

The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield....

A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield. The bond's price should equal B.The Fishing Pier has 6.40 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,027. What is the yield to maturity? C.Bond Yields Find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. The bond makes semiannual coupon...

4 part example I need help with. Calculate the price of a bond that matures in...

4 part example I need help with. Calculate the price of a bond that matures in 20 years with a coupon rate of 3% paid annually, when the market rate is 3%. Calculate the price of a bond where the coupon rate is 5% (pays annually), the market interest rate is 4%, and the life of the bond is 10 years. Suppose that you have an annual pay 7-year bond with a price of $1,100, paying a 4.5% coupon, with...

How to calculate coupon bond's Yields to Maturity? Table 1 Yields to Maturity on a 10%-coupon-Rate...

Homework Answers

Add Answer to:
How to calculate coupon bond's Yields to Maturity? Table 1 Yields to Maturity on a 10%-coupon-Rate...

Post as a guest

Earn Coins

1. The term structure of interest rates refers to the relationship between _____. a bond's time to maturity and its coupon rate a bond's age since issue and its coupon rate a bond's age si...

7.) The yield to maturity of a $ 1,000 bond with a 6.7 % coupon rate,...

1. What is the bond's yield to maturity? 2. What happens to the bond's yield to...

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price =...

Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year 2 years 3 years 4 years 5 years Zero-Coupon Yields 4.30% 4.70% 5.00% 5.20% 5.50% What is the price of a three-year, default-fr

1a. Calculate the price of a bond where the coupon rate is 5% (pays annually), the...

Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of $941.23. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 10%

The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and...

A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield....

4 part example I need help with. Calculate the price of a bond that matures in...

How to calculate coupon bond's Yields to Maturity? Table 1 Yields to Maturity on a 10%-coupon-Rate...

Homework Answers

Add Answer to: How to calculate coupon bond's Yields to Maturity? Table 1 Yields to Maturity on a 10%-coupon-Rate...

Post as a guest

Earn Coins

Add Answer to:
How to calculate coupon bond's Yields to Maturity? Table 1 Yields to Maturity on a 10%-coupon-Rate...