Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, an...

Question

Question

Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, an...

Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, and a $1000 par value. The bond has a 6.50 Yield to maturity, but it can be called in 6 years at a price of $1045. What is the bond's Yield to call?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

B 15 1 Maturity (years) 2 Face Value 3 Coupon Rate 4 YTM 5 Current price 6 Time to Call 7 Call Price 8 Frequency $1,000 8.25% А 1 Maturity (years) 2 Face Value 3 Coupon Rate 4 YTM 5 Current price 6 Time to Call 7 Call Price 8 Frequency 15 1000 0.0825

Add a comment

Answer 2

Similar Homework Help Questions

Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, an...

Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, and a $1000 par value. The bond has a 6.50 Yield to maturity, but it can be called in 6 years at a price of $1045. What is the bond's Yield to call?
Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond’s nominal yield to call? 6.77% 5.09% 4.42% 5.54% 5.59%
Arco Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...

Arco Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 7.70% yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's yield to call? Hint: Calculate the bond's price based on the YTM, and then use that price to find the YTC. Your answer should be between 4.08 and 10.64, rounded to 2 decimal...

Arco industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...

Arco industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 8.40% yield to maturity. But it can be called in 6 years at a price of $1,045. What is the bonds yield to call?
You're examining a bond with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and...

You're examining a bond with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's nominal yield to call? a. 4.42% b. 5.54% C. 6.77% d. 5.09% e. 5.59%
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?

5pts Arco Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon...

5pts Arco Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon semiannual payments, and a $1,000 par value. The bond has a 7.30% yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's yield to call? Hint: Calculate the bond's price based on the YTM, and then use that price to find the YTC. Your answer should be between 4.08 and 10.64, rounded to 2...
keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually,...

keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually, and a $1,000 par value. The bond has a 6% nominal annual yield to maturity, but it can be called in 5 years at a price of $1,080. What is the bond's nominal yield to call?
keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually,...

keenan industries has a bond outstanding with 15 years to maturity, an 8% coupon paid semiannually, and a $1,000 par value. The bond has a 6% nominal annual yield to maturity, but it can be called in 5 years at a price of $1,050. What is the bond's nominal yield to call?

Keenan Industries has a bond outstanding with 20 years to maturity, an 8.25% coupon paid semiannually,...

Keenan Industries has a bond outstanding with 20 years to maturity, an 8.25% coupon paid semiannually, and a $1,000 par value. The bond has a 6.95% nominal yield to maturity, but it can be called in 7 years at a price of $1,085. What is the bond’s nominal yield to call? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35...

Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, an...

Homework Answers

Add Answer to:
Sounds Nice industries has a bond outstanding with 15 years to maturity, an 8.25 nominal coupon, semiannual payments, an...

Post as a guest

Earn Coins