What is the intrinsic value of Spark Inc. bonds, with a maturity date of June 1, 2029, if comparable bonds have to yield to maturity of 8%? The face value is $1000 and coupon payments are semi-annual. Coupon rate: 5% Maturity date: 6/1/2029 Maturity (approx): 10 years YTM: 8% P: 1000 semi-annual payments (2) Intrinsic Value: $796.15 (Fair Price) Got the value by doing putting this in excel: =PV(8%/2, 10*2, -5%/2*1000, -1000)
What is the intrinsic value of Spark Inc. bonds, with a maturity date of June 1,...
ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM? ABC issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM? A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity...
Q4 - Bond Valuation (25 min) Value the following bonds 20-year bond with a face value of $10,000 with an annual coupon of 5% and market rate (yield to maturity or YTM) of 6.5% 10-year bond with a coupon of 8% (split into quarterly payments), face value of $5000 and YTM of 7% (annually) 5-year bond with a face value of $4,000, with semi-annual coupon payments, with a coupon rate equal to YTM.
Problem 1: Using a Spreadsheet to Calculate Yield to Maturity What is the yield to maturity on the following bonds; all have a maturity of 10 years and a face value of $1,000, and a coupon rate of 9 percent (paid semiannually). The bonds' current market values are $945.50, $987.50, $1,090.00, and $1,225.875, respectively. Market Total Coupon Periodic Coupon Face SEMI-ANNUAL => Yield to Value (PV) Payments (NPER) Rate (ANNUAL) Payment (PMT) Value (FV) YTM (RATE) Maturity $945.50 20 9%...
1. What is the current price of a $1000 par value bond if has 12.5 years until maturity, a YTM of 6.6%, and a coupon rate of 6% with semi-annual coupon payments? 2.The bonds of Lapeer Airlines, Inc., are currently trading on the market at $1,119.34. They have a par value of $1000, make semi-annual coupon payments with a coupon rate of 6.4%, and a YTM of 4.6%. How many years until these bonds mature? 3.You have decided to try...
You are considering the bonds of Epsilon, Inc., a printer manufacturer. The bonds make semiannual payments and have five years to maturity, a coupon rate of 6%, and a face value of $1,000. Determine the price of these bonds assuming that your required rate of return is 8% YTM. (use the PV function). Please show work in Excel
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively. Hint, you can only calculate current yield after you have determined the intrinsic value (price) of the bonds. iii)...
E F 9b-2 The seven-year, $1,000 par value bonds of the Quist Mountain Mist Beverage Co. pay 9.0 percent interest (assume semi-annual payments). the market's required yield to maturity on a comparable-risk bond is 7 percent. The current price for the bond is $1,100. a. Determine the Yield to Maturity. b. What is the value of the bond to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price?...
You can purchase a $1000 face value bond with 10 years to maturity for $980. The bond pays a semi-annual coupon. The market requires a return of 8%, compounded semi-annually on similar bonds. What is the coupon rate? 7.71% 8% 2% 3.85% 4%
Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semi-annual payments and have a standard par value of $1,000. The YTM on these bonds is 4.5 percent. What is the current price of the bond? Settlement date (MM/DD/YYYY) Maturity date (MM/DD/YYYY) Years to Maturity (# of years) Coupon rate (%) Coupons per year (# per year) Face value (% of par) Yield to maturity (%) Par value ($)