A 15-year, 7 percent coupon annual payment corporate bond has a PV of $1,055.62. However, you...
A 15-year, 7 percent coupon annual payment corporate bond has a PV of $1,055.62. However, you pay $1,024.32 for the bond. By how many basis points is your E(r) different from your r?
Homework Answers
answrr
is 32.56 basis pointsAdd Answer to:
A 15-year, 7 percent coupon annual payment corporate bond has a
PV of $1,055.62. However, you...
Briggs Corporate issued a 20 year, 8.25% semi-annual coupon bond. This bond has a face value...
Briggs Corporate issued a 20 year, 8.25% semi-annual coupon bond. This bond has a face value of $1,000 and currently sells in the market at the price of $928.69. Its YTM is 9.00%What coupon payment does this bond pay every 6 months? (a)$39.469 (b)$45.000 (c)$20.625 (d)$41.250 (e)$41.791
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent...
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays Interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of retur. b. Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate...
Bond Returns: A 15-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. Aft...
Bond Returns: A 15-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. After one year, assuming the the yield to maturity (discount rate) remains the same as previous, calculate the following returns between the two years: 1) Current yield 2) Capital gains yield 3) Total returns Hint: solve the rate (yield to maturity) for the 25-year bond. with the same yield to maturity, solve the price for the bond with shorter maturity....
A 12-year annual payment corporate bond has a market price of $925. It pays annual interest...
A 12-year annual payment corporate bond has a market price of $925. It pays annual interest of $60 and its required rate of return is 7 percent. By how much is the bond mispriced? -1.51% -1.26% -1.01% -0.76% -0.51% -0.26% -0.01% 0.24% 0.48%
10. How much would you pay for a corporate bond that pays an annual coupon of 15%...
10. How much would you pay for a corporate bond that pays an annual coupon of 15% and matures in 14 years if your required rate of return is 12%? 11. Assuming you purchased a convertible bond at par. If the 6% annual bond is convertible into 50 shares of stock, at what point does this option become attractive? 12. What is the issue price of a zero coupon bond that matures at par in ten years and pays a 9% annual coupon? 13. Using...
You just purchased a 15-year bond with an 10 percent annual coupon. The bond has a face value of $1,000 and a current y...
You just purchased a 15-year bond with an 10 percent annual coupon. The bond has a face value of $1,000 and a current yield of 10.75 percent. Assuming that the yield to maturity of 9.60 percent remains constant, what will be the price of the bond ten years from now? a. Less than $489 b. Between $489 and $996 c. Between $996.01 and $1080 Between $1080.01 and $1,200 e. Greater than $1,200
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells...
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield....
A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield. The bond's price should equal B.The Fishing Pier has 6.40 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,027. What is the yield to maturity? C.Bond Yields Find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. The bond makes semiannual coupon...
1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If the...
1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If the current value of the bond in the marketplace is $900, then what is the Yield-to-Maturity (YTM)? 2) A 10-year corporate bond has a coupon rate of 6% with annual payments. If the current value of the bond in the marketplace is $1100, then what is the Yield-to-Maturity (YTM)? 3) A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. If the...
21) A 13-year, 6 percent coupon bond pay year, 6 percent coupon bond pays interest semiannually....
21) A 13-year, 6 percent coupon bond pay year, 6 percent coupon bond pays interest semiannually. The bond has a face value 21) of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent? A)-1.79 percent B) 1.79 percent C)-1.38 percent D) -1.64 percent 22) 22) This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent....
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays Interest annually. a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of retur. b. Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate...
You just purchased a 15-year bond with an 10 percent annual coupon. The bond has a face value of $1,000 and a current yield of 10.75 percent. Assuming that the yield to maturity of 9.60 percent remains constant, what will be the price of the bond ten years from now? a. Less than $489 b. Between $489 and $996 c. Between $996.01 and $1080 Between $1080.01 and $1,200 e. Greater than $1,200
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
21) A 13-year, 6 percent coupon bond pay year, 6 percent coupon bond pays interest semiannually. The bond has a face value 21) of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent? A)-1.79 percent B) 1.79 percent C)-1.38 percent D) -1.64 percent 22) 22) This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent....
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