Question

The following information from the close of trading on November 24, 2010 is for an IBM bond with a face value of $1.000 and a
0 0
Add a comment Improve this question Transcribed image text
Answer #1

current yield = coupon amount / price *100

here,

coupon amount = $1000*2.1%=>$21.

price =1,027.

current yield = 21/ 1027 *100

=>2.04%.

Add a comment
Know the answer?
Add Answer to:
The following information from the close of trading on November 24, 2010 is for an IBM...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1) Consider a 10-year bond trading at $1150 today. The bond has a face value of...

    1) Consider a 10-year bond trading at $1150 today. The bond has a face value of $1,000, and has a coupon rate of 8%. Coupons are paid semiannually, and the next coupon payment is exactly 6 months from now. What is the bond's yield to maturity? 2)A coupon-paying bond is trading below par. How does the bond's YTM compare to its coupon rate? a. Need more info b. YTM = Coupon Rate c. YTM > Coupon Rate d. YTM <...

  • Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for...

    Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,034.56. 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 9.8% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.) b. If the bond's...

  • Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for...

    Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for $1,035.88. 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 9.8% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.) b. If the bond's...

  • Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for...

    Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,035.33. 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 9.6% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.) b. If the bond's...

  • Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for...

    Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,034.64. 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 9.7% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is 7.8 %. (Round to two decimal places.) b. If the...

  • Suppose a​ ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for...

    Suppose a​ ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $ 1,035.44. a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)? (Round to two decimal places). b. If the​ bond's yield to maturity changes to 9.4 % ​APR, what will be the​ bond's price? (Round to two decimal places).

  • Suppose a ten-year $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for...

    Suppose a ten-year $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.69. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. It the bond's yield to maturity changes to 9.4% APR what will be the bond's price? a. What is the bonds yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is % (Round to two decimal places.)

  • Suppose a ten-year, $ 1,000 bond with an 8.8 % coupon rate and semiannual coupons is trading for $ 1,034.65. a. What is...

    Suppose a ten-year, $ 1,000 bond with an 8.8 % coupon rate and semiannual coupons is trading for $ 1,034.65. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? .........% (Round to two decimal places) b. If the bond's yield to maturity changes to 9.9 % APR, what will be the bond's price? .............$ (Round to nearest cent)

  • Please solve. Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.26....

    Please solve. Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.26. 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 9.3% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)

  • Suppose a ten-year, $ 1 000 bond with an 8.4 % coupon rate and semi-annual coupons...

    Suppose a ten-year, $ 1 000 bond with an 8.4 % coupon rate and semi-annual coupons is trading for a price of $ 1 035.72. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.1 % APR , what will the bond's price be? a. The bond's yield to maturity is nothing %. (Enter your response as a percent rounded to two decimal places.) b....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT