1. A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon and sells for $980. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. ___________%     b. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.____________% 2. Assume that the risk-free rate is 6% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 1.5? Round your answer to two decimal places.

Q: A bond has a $1,000 par value, 12 years to maturity,and an 8% annual coupon and sells for $980.a.…

A: a) The computation of yield to maturity as follows: Hence, the YTM is 8.27%.

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A: A bond is a borrowing security that is issued by the company to raise funds from the market by…

Q: years from today. Assume that the YTM today is 3.8%   • Calculate the price of the same bond after…

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Q: A Macrohard Corp. bond carries an 8% coupon, paid annually and has 10 years to maturity. The par…

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Q: A bond has a $1,000 par value, 15 years to maturity, and an 8% annual coupon and sells for $1,080.…

A: MS-Excel --> Formulas --> Financials --> Rate Therefore, yield to maturity is 7.12%.

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A: In  this question we are required to calculate current price of the bond from the given below data :…

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Q: The topic is bond maturity and Face value. Answer the following two (2) questions on the topic  a).…

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Q: Using the formula for YTM (yield to maturity) in the lecture, what is the rate of return for a bond…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: A bond has a $1,000 par value, 15 years to maturity, and an 8% annual coupon and sells for $1,080.…

A: YTM on the bond is yield we earn on the bond if bond is held to maturity

Q: Suppose there is a bond with a par value of $1,000 that matures in 6 years. Coupon payments are made…

A: Information Provided: Par value = $1000 Maturity =  6 years Coupon rate = 9% Yield to maturity = 12%

Q: For the following questions, assume the normal case that coupon payments are semi-annual. a. What is…

A: Here, Face Value of Bond is $1,000 Selling Price of Bond is $1,000 Coupon Rate is 5.9% Therefore,…

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A: Bond is one of debt security which is issue by corporates or government for financing. Bonds provide…

Q: A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110.…

A: Bonds Price is the present value of future payments. Future payments includes coupon and face value.

Q: ) Consider buying a 1000 pbr bond at the market price of 800 pbr. The bond pays dividends…

A: Coupon Rate is the rate paid annually or semiannually

Q: Consider a bond with the following terms: • 10-years to maturity • $1,000 face value • Coupon are…

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Q: A bond with a coupon rate of 6.5% (assume it is paid once annually), matures in 10 years at a value…

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A: Value of Bond is calculating the present value of a bond’s expected future coupon payments.

Q: The market price of TRUST bond is currently $890. Its par value is equal to $1,000 and it is…

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Q: Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000.…

A: Current YEILD on bond can be calculated by annual coupon divided by current market price.

Q: "Company A has just issued a callable (at par) 10 year, 10% coupon bond with annual coupon payments.…

A: Here, Details are as follows:

Q: Consider a Treasury bond with 8% coupon rate and 4 years to maturity (annual coupons). You enter…

A: Forward price is the price at which the buyer will buy the underlying asseat a future date. This…

Q: A bond has a $1,000 par value, 15 years to maturity, and an 8% annual coupon and sells for $1,080.…

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Q: Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to…

A: The yield to maturity of the bond is the total return that is anticipated by the investor if the…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 7% annual…

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Q: Calculate the yield to maturity for a bond that has a $1,000 per value, 15 years to maturity, a 4%…

A:

Q: A 25-year Treasury bond has a face value of $1,000, price of $1,400 with a $40 coupon payment.…

A: Face Value = 1000 Price = 1400 Coupon = 40 Price after one year = 1300

Q: YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 12 years to maturity, and an 8%…

A: Annual Compounding     Yield to maturity  Years 12 coupon amount (PMT)  (1000*8%) 80 Face…

Q: For the following questions, assume the normal case that coupon payments are semi-annual. a. What is…

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A: A financial instrument that does not affect the ownership of the common shareholders or management…

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A:

Q: What is the yield to maturity? b. What is the yield to call if they are called in 5 years? c.…

A:

Q: A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110.…

A:

Q: For the following questions, assume the normal case that coupon payments are semi-annual. a. What is…

A: For annual rate of return from bond, first we need to use PV function in excel to calculate bond…

Q: For the following questions, assume the normal case that coupon payments are semi-annual. a. What is…

A: N = 12 years Coupon Rate = 6.2% Price = 1000 Face Value = 1000

Q: Assume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume…

A:

Q: Consider a 30-year Bond with $1,000 face value, which offers 10% annual coupon, paid once a year.…

A: Given: Years = 30 Face value = $1,000 Coupon rate = 10% Yield to maturity (YTM) = 6% or 7%

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A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: A corporate bond has 30 years left to maturity, a par value of $1,000, coupon rate of 7.5% with…

A: Value of bond is the present value of the future coupon payments and the present value of the bond…