Homework Answers
The coupon rate is the rate at which a bond pays a periodic payment to the bond holder. While the yield to maturity is the return that is accrued to the bond investor due to the coupon payment and the final face value of the bond.
For example, if the bond price is 800 and coupon rate is 6% and face value is 1000 and time to maturity is 5 years the,
Coupon = 6%*1000 = 60
The yield to maturity is 11.48% Formula in excel =RATE(5,6%*1000,-800,1000,,)
Since information on stock is not there, it is difficult to comment which is better.
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What is the difference between yield to maturity and the coupon rate? Which stock is better?
a. What is the difference between coupon rate and yield to maturity? How do you use...
a. What is the difference between coupon rate and yield to maturity? How do you use the coupon rate to calculate the periodic payment received from a bond? b. What is the price of a bond that is currently trading at a yield of 10% and has a face value of $1,000? This bond still has exactly 5 years to maturity. This bond pays semi-annual coupon at an annual rate of 8% (i.e., each coupon is 4%). Show how you...
what is the difference between yield to maturity and current yield？
what is the difference between yield to maturity and current yield？
Given that two bonds have the same maturity, yield to maturity and different coupon rate, which...
Given that two bonds have the same maturity, yield to maturity and different coupon rate, which of the following is true? Is it A.The high coupon bond will be sold for premium. B. The lower coupon bond will be sold for premium. C.The high coupon bond will have higher interest rate risk., D.The low coupon rate bond will have higher interest rate risk.?
Coupon rates. What are the coupon rates for the following bonds? Yield to Coupon Years to Coupon Frequency Par Value Maturity Maturity Price Rate $5,000.00 20 $3,925.15 monthly 1,000.00 5% $1,000.00...
Coupon rates. What are the coupon rates for the following bonds? Yield to Coupon Years to Coupon Frequency Par Value Maturity Maturity Price Rate $5,000.00 20 $3,925.15 monthly 1,000.00 5% $1,000.00 semiannual $1,000.00 9% $1,038.90 annual $1,000.00 11% $677.87 20 quarterly Hint: Make sure to round all intermediate calculations to at least six decimal places a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield to Maturity Coupon Years to Coupon Frequency Par Value...
7.) The yield to maturity of a $ 1,000 bond with a 6.7 % coupon rate,...
7.) The yield to maturity of a $ 1,000 bond with a 6.7 % coupon rate, semiannual coupons, and two years to maturity is 7.7 % APR, compounded semiannually. What is its price? The price of the bond is $ __ 8.) Suppose a ten-year, $ 1 comma 000 bond with an 8.4 % coupon rate and semiannual coupons is trading for $ 1 comma 035.89. a. What is the bond's yield to maturity (expressed as an APR with semiannual...
If a coupon bond has two years to maturity, a coupon rate of 8%, a par...
If a coupon bond has two years to maturity, a coupon rate of 8%, a par value of $800, and a yield to maturity of 12%, then the coupon bond will sell for $ (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are Positively related, negitively related, or unrelated. which of the following statements is not true? A. The longer to maturity, the greater is the change in the...
1- What is the difference between a bond’s coupon rate and its market interest rate (yield)?...
1- What is the difference between a bond’s coupon rate and its market interest rate (yield)? 2- How do credit (debit) ratings affect the cost of borrowing for a company? 3- Read the article entitled “The Lawsuits Keep Coming for J&J” and explain how the lawsuits can impact J&J’s financial statements.
Which of the following are characteristics of a premium bond? I. coupon rate < yield-to-maturity II....
Which of the following are characteristics of a premium bond? I. coupon rate < yield-to-maturity II. coupon rate > yield-to-maturity III. market price > face value IV. market price < face value A. II and IV only B. I only C. I and III only D. II and III only
Yield to maturity. What is the yield of each of the following bonds if interest (coupon)...
Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid annually? Yield to Maturity Par Value $5,000.00 $1,000.00 $1,000.00 $1,000.00 Years to Maturity 10 25 Price $6,500.00 $1,760.00 $1,000.00 $650.00 Coupon Rate 9% 12% 10% 5% 20
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and...
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
Coupon rates. What are the coupon rates for the following bonds? Yield to Coupon Years to Coupon Frequency Par Value Maturity Maturity Price Rate $5,000.00 20 $3,925.15 monthly 1,000.00 5% $1,000.00 semiannual $1,000.00 9% $1,038.90 annual $1,000.00 11% $677.87 20 quarterly Hint: Make sure to round all intermediate calculations to at least six decimal places a. What is the coupon rate for the following bond? (Round to two decimal places.) Yield to Maturity Coupon Years to Coupon Frequency Par Value...
Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid annually? Yield to Maturity Par Value $5,000.00 $1,000.00 $1,000.00 $1,000.00 Years to Maturity 10 25 Price $6,500.00 $1,760.00 $1,000.00 $650.00 Coupon Rate 9% 12% 10% 5% 20
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
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