Heginbotham Corp. issued 15-year bonds two years ago at a coupon rate of 8.8 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM?
Face Value = $1,000
Current Price = 109% * Face Value
Current Price = 109% * $1,000
Current Price = $1,090
Annual Coupon Rate = 8.80%
Semiannual Coupon Rate = 4.40%
Semiannual Coupon = 4.40% * $1,000
Semiannual Coupon = $44
Time to Maturity = 13 years
Semiannual Period = 26
Let Semiannual YTM be i%
$1,090 = $44 * PVIFA(i%, 26) + $1,000 * PVIF(i%, 26)
Using financial calculator:
N = 26
PV = -1090
PMT = 44
FV = 1000
I = 3.846%
Semiannual YTM = 3.846%
Annual YTM = 2 * 3.846%
Annual YTM = 7.692% or 7.69%
So, yield to maturity is 7.69%
Heginbotham Corp. issued 15-year bonds two years ago at a coupon rate of 8.8 percent. The...
Bond Yields: Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
Ngata Corp. Issued 15-year bonds 2 years ago at a coupon rate of 9.8 percent The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM? О 8.34% О 11.12% О 9.26% О 10.19% 0 4.63%
West Corp. issued 20-year bonds two years ago at a coupon rate of 8.3 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM %
Skolits Corp. issued 20-year bonds 2 years ago at a coupon rate of 7.4 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM?
West Corp. issued 20-year bonds two years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 107 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Bond Yields (LO2] Heginbotham Corp. issued 20-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
West Corp. issued 10-year bonds two years ago at a coupon rate of 8.1 percent. The bonds make semiannual payments. If these bonds currently sell for 102 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM = _______ %
West Corp. issued 13-year bonds 2 years ago at a coupon rate of 10.4 percent. The bonds make semiannual payments. If these bonds currently sell for 102 percent of par value, what is the YTM? Multiple Choice 10.09% 12.11% 11.10% 9.09% 5.05%
ABC Corp. issued 15-year bonds with a par value of $1,000 2 years ago at a coupon rate of 5.9 percent. The bonds make semiannual payments. If these bonds currently sell for $1,050, what is the YTM?
2. ABC Corp. issued 15-year bonds with a par value of $1,000 2 years ago at a coupon rate of 5.9 percent. The bonds make semiannual payments. If these bonds currently sell for $1,050, what is the YTM?