Information provided:
Par value=Future value= $1,000
Time= 15 years*2= 30 semi-annual periods
Coupon rate= 9%/2= 4.50%
Coupon payment= 0.045*1,000= $45
Current value= present value= $800
The yield to maturity is calculated by entering the below in a financial calculator:
FV= 1,000
PV= -800
N= 30
PMT= 45
Press the CPT key and I/Y to compute the yield to maturity.
The value obtained is 5.9443.
Therefore, the yield to maturity is 5.9443%*2= 11.8887% 11.89%.
In case of any query, kindly comment on the solution.
P9-7 (similar to) (Related to Checkpoint 9.2) (Yield to maturity) The market price is $800 for...
P9-7 (similar to) Question Help (Related to Checkpoint 9.2) (Yield to maturity) The market price is $1,175 for a 9-year bond ($1.000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is %. (Round to two decimal places) P9-8 (similar to) 15 Question Help Help (Yield to maturity) A bond's market price is $750. It has a $1,000...
I JIMUI LUJ (Related to Checkpoint 9.2) (Yield to maturity) The market price is $850 for a 13-year bond ($1.000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is %. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. All narts showina javascriot:doExercise(4): Clear All Check Answer
Question 3: (10 points). (Yield to maturity) The market price is $750 for a 20-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity? (Round to two decimal places.) The bond's yield to maturity is | | %
(Yield to maturity) The market price is $750 for a 9-year bond ($1000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is nothing%. (Round to two decimal places.)
The market price is $800 for a 19-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?
P9-13 (similar to) i Question Help * Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 18 year, $1,000 par value bonds pay 12 percent interest annually. The market price of the bonds is $1,090 and the market's required yield to maturity on a comparable-risk bond is 9 percent a. Compute the bonds yield to maturity b. Determine the value of the bond to you, given your required rate of return c. Should you purchase the bond? a. What...
Round to two decimals places. Homework: 7-1 MyFinanceLab Assignment Score: 0 of 4 pts 5 of 12 (12 complete) HW Score: 87.33%, 43.67 of 50 pts P9-7 (similar to) Question Help Related to Checkpoint 9.2) (Yield to maturity) The market price is $1,100 for a 17-year bond ($1,000 par value) that pays 12 percent annual interest, but makes interest payments on a semiannual basis (6 percent semiannually) What is the bond's yield to maturity? the bod's yield to maturity is[]%....
The market price is $1,150 for a 1o year bond ($1,000 par value) that pays 11 percent annual interest, but makes payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?
The market price is $700 for a 14-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?
The market price is $1050 for a 19-year bond ($1000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is %. (Round to two decimal places.)