What happens to the market value, yield to maturity, and current yield of a bond if the coupon rate increases? What would happen to the face value?
Market value increases
Yield to maturity decreases
Current yield not certain
Face value remains constant
What happens to the market value, yield to maturity, and current yield of a bond if...
Yield to maturity a spreadsheet.) The bond shown in the following table pays interest annually. (Click on the icon here in order to copy the contents of the data table below into Coupon interest rate Years to maturity Par value $1,000 Current value $1,230 a. Calculate the yield to maturity (VTM) for the bond b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain a. The...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years. It pays interest annually, and the yield to maturity is 12%. In WORDS (1-2 complete sentences each) answer the following questions. What does it mean that the bond above has a face value of $1,000? What does it mean that the bond has a coupon rate of 8%? What does it mean that the bond has a maturity of 10 years?...
Which of the following will increase if the coupon rate for a bond increases? I. face value II. market value III. yield-to-maturity IV. current yield Is it A. I and IV only, B. II, III, and IV only, C.II only, D. II and IV only?
What is the current yield (not yield to maturity) of a bond with the following characteristics: 100 face, purchase price $95.60, 20-year maturity, 4% coupon paid semi-annually?
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...
8.) What is the yield to maturity of a five-year, $ 5, 000 bond with a 4.8% coupon rate and semiannual coupons if this bond is currently trading for a price of $ 4, 785? 9.) Which of the following bonds is trading at a premium? A.a 15minusyear bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semiannually B.a tenminusyear bond with a $4,000 face value whose yield to maturity...
Calculate the current yield on a $1000 face value bond under the following conditions. Assume bond coupons are paid semiannually. Round the answers to 2 decimal places Coupon Rate Time Until Maturity Current Market Rate Current Yield 15 years
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?
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the Market price b. Annual interest divided by Face value C. Same as current yield d. Same as market rate
The return to bondholders is guaranteed to equal the yield to maturity only if the bond is held until maturity. True False The discount rate that makes the present value of a bond's payments equal to its price is termed the: A. dividend yield B. yield to maturity C. current yield D. coupon rate Assume a bond is currently selling at par value. What will happen in the future if the yield on the bond is lower than the coupon...