A bond has a $1,000 par value, nine years to maturity, and pays a coupon of...
A bond has a $1,000 par value, nine years to maturity, and pays a coupon of 3.75% per year, semiannually. The bond can be called in four years at $1,075. If the bond’s yield to call is 3.58% per year, what is its annual yield to maturity?
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A bond has a $1,000 par value, nine years to maturity, and pays
a coupon of...
SKMY Industries has a bond outstanding with 20 years to maturity, an 8.25% nominal coupon, semiannual...
SKMY Industries has a bond outstanding with 20 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 7.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,075. What is the bond’s nominal yield to call?
-What is the yield to call of a 30-year to maturity bond that pays a coupon...
-What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.98 percent per year, has a $1,000 par value, and is currently priced at $918? The bond can be called back in 7 years at a call price $1,089. Assume annual coupon payments. -Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 17 years and a yield to maturity of 10.23 percent,...
Harbuck’s Coffee semi-annual coupon, $1,000 par value bonds have 15 years to maturity. The bond’s annual...
Harbuck’s Coffee semi-annual coupon, $1,000 par value bonds have 15 years to maturity. The bond’s annual coupon rate is 7% and they sell for $1,035 each. These bonds can be called in 3 years at a call price of $1,050. What is the bond’s yield to call? What is the bond’s yield to maturity? Which return would you expect to earn?
A $1,000 par value bond with five years left to maturity pays an interest payment semiannually...
A $1,000 par value bond with five years left to maturity pays an interest payment semiannually with a 6% coupon rate and is priced to have a 5% yield to maturity. If interest rates surprisingly increase by 0.5%, by how much would the bond’s price change?
3. A 12-year, 12% semiannual coupon bond with a par value of $1,000 may be called...
3. A 12-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 6 years at a call price of $1,030. The bond sells for $1,150. (Assume that the bond has just been issued.) a. What is the bond’s yield to maturity? b. What is the bond’s current yield? c. What is the bond’s capital gain or loss yield? d. What is the bond’s yield to call?
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons...
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons of $21. (a) Suppose the yield for this bond is 4% per year compounded semiannually. What is the price of the bond? (b) Is the bond selling above or below par value? Why?
A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually...
A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with an 8 percent coupon rate and is priced to have a 7.5 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bond’s price change? Bonds Price (increase/decrease) by ___________________
What is the yield to maturity of a nine-year bond that pays a coupon rate of...
What is the yield to maturity of a nine-year bond that pays a coupon rate of 11% per year, has a $1,000 par value, and is currently priced at $1,175? Assume annual coupon payments. a. 11.10% b. 8.2% c 9.20% d.13%
Six years ago, you purchased a callable bond with fifteen years until maturity. The bond has...
Six years ago, you purchased a callable bond with fifteen years until maturity. The bond has a $1,000 par value and pays interest semiannually. The bond has 9% coupon rate and a 6% yield to maturity. The bond offers three years of call protection and a 2% call premium. a. How much did you pay for the bond at the time of purchase? b. Today, the firm called the bond. What is the bond’s yield to call? c. Did the...
A callable bond has 15 years to maturity and can be called in 5 years. The...
A callable bond has 15 years to maturity and can be called in 5 years. The bond’s coupon rate is 12% with semi-annual coupon payments. The par value is $1000. If the bond is called, the call price will be $1100. The bond is currently selling for $1055.35 What is the difference between its yield-to-call and yield-to-maturity?
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