A Limited's bonds bearing a coupon of 12%, pay coupons semi-annually, have three years remaining to maturity, and are currently priced at $940 per bond. What is the yield to maturity? Round your answer to 2 decimal points.
Q: Showbiz, Inc., has issued eight-year bonds with a coupon of 7.33 percent and semiannual coupon…
A: In this question the first part asks for the present value of the bond which will give the market…
Q: What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value…
A: Yield To Maturity is the Rate which is expected to earn from a bond after considering all interest…
Q: Marshall Company is issuing eight-year bonds with a coupon rate of 6.19 percent and semiannual…
A: In this question we need to calculate Bond price and how many bonds does the firm have to sell?
Q: A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable…
A: i. Coupon amount = Face value * Coupon rate Coupon amount = $1000 * 10.5%/2 Coupon amount = $52.50
Q: What is the annual coupon rate rounded to 2 decimal places if ABC Inc. recently issued a 20-year…
A: Bonds are the debt security which is offered or issued by corporates or the governments to collect…
Q: O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal…
A: Nominal Coupon interest Rate = Annual Interest / Bond Par Value Present Value of cash flows =…
Q: uppose the yield on a two-year-old Treasury bond is 5 percent and the yield on a one-year…
A: A risk-free bond that is issued by the government, and also has a more than 20 years maturity period…
Q: ABC Motors' bonds have 19 years remaining to maturity. Interest is paid semi-annually, they have a…
A: Data given:: Par Value = $1,000 Coupon interest rate = 5% (paid semi-annually) = 5%/2 = 2.5% = 0.025…
Q: Jackson Corporation's bonds have 13 years remaining to maturity. Interest is paid annually, the…
A: market price of bond: price of bond=coupon rate×par×1-11+rnr+par1+rn r=yield to maturity n=years to…
Q: A 11-year bond pays interest of $28.60 semiannually, has a face value of $1,000, and is selling…
A: Semi Annual Interest Time Period = 11 Years × 2 =22 semi annual periods Face Value = 1000 Price of…
Q: ACB Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10…
A: Par value = $1000 Coupon rate = 10% Coupon amount = 1000*0.10 = $100 Years to maturity = 8 Years…
Q: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8.6%…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: What is the Macaulay duration of a 3% bond with 3 years to maturity, discounted at a rate of 2% per…
A: Macaulay duration shows the time period required by investor to recover his invested amount in the…
Q: Assume a $1,000 face value bond has a coupon rate of 8 percent, pays interest semi-annually, and has…
A: GIVEN, par = $1000 coupon rate = 8% t = 8 n =2 ( semi annual coupon bond) r = 10% A= face value x…
Q: ewey, Cheatham & Howe, a regional brokerage house, has an issue of $1,000 par value bonds with 18…
A: Using excel RATE function
Q: ConEdison Utility Company has four-year bonds outstanding that pay a coupon rate of 6.6% and make…
A: Yield to maturity of the company will be reflective of the required rate of return for investor in…
Q: Potter Industries has a bond issue outstanding with a 6% coupon rate with semiannual payments of…
A: Bond value is the current worth of a bond on the basis of present value of all the cash flows it may…
Q: The firm has bonds outstanding that mature in five years. The par value of each bond is $1,000, the…
A: Face value of bond is $1000 Coupon rate is 5% The bond pays annual coupons for 5 years until…
Q: Assume the bonds par is $1000. A 13 yr bond is selling at $1,040 and its coupn is paid semi…
A: Face value = 1000 YTM years = 13 YTM rate = 9% Present value = 1040
Q: H&M Corp. has 8% coupon bonds making annual payments with YTM of 7.2% and face value of $1,000. The…
A: Coupon rate=8% Face value=$1,000 Annual cash flow=8% on $1,000=$80 Current yield=Annual cash…
Q: Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of…
A: The amount that the bondholder expects in order to invest in bonds at the time of maturity is…
Q: maturity
A: Formula to calculate YTM is: C+F - P n F + P 2 Where C is the coupon payment, F is the face…
Q: Which of the following bonds is trading at a premium? O A. a ten – year bond with a $4,000 face…
A: A bond will trade at Premium, when Coupon rate is greater than YTM A bond will trade at discount ,…
Q: O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal…
A: Bonds are a form of debt or loan taken by the company, on which company has to make regular interest…
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 6 years to…
A: BondIt is the instrument of the indebtedness of an issuer of the bond to the holders of the bond.
Q: Hizzy Corp. bonds bearing a coupon rate of 15%, pay coupons semiannually, have three years remaining…
A: Bond price = $988 Face value = $1000 Coupon rate = 15% Semi annual coupon amount = 1000*0.15/2 = $75…
Q: Gabriele Enterprises has bonds on the market making annual payments, with 12 years to maturity, a…
A: Face value = $1,000 Price of bond = $820 Yield to Maturity = 11% Time Period = 12 Years
Q: Han Corporation issues a bond which has a coupon rate of 7.2%, a yield to maturity of 9.3%, a face…
A: Face value = $1,000 Market Price = $990 Yield to maturity = 9.3% Coupon rate = 7.2%
Q: Crane, Inc., has four-year bonds outstanding that pay a coupon rate of 7.00 percent and make coupon…
A: The calculation of yield to maturity is shown below:
Q: Wilson Corporation’s bonds have 15 years remaining to maturity. Interest is paid annually, the bonds…
A: Working note:
Q: Glacier Industries has bonds on the market making annual payments, with 14 years to maturity, and…
A: A coupon is a periodic amount paid by the bond issuer to the bond holder as a fixed percentage of…
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 6% semiannual coupon, 11 years to…
A: Par value (F) = $ 1000 Coupon rate = 6% Semi annual coupon amount (C) = 1000*0.06/2 = $ 30 Years to…
Q: Jackson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the…
A: Bond is a long-term debt instrument which is used by organizations to raise debt from…
Q: What is the yield to maturity for the following bond: current price is $908, coupon rate is 11…
A: Here, Present value (PV) = $908 Maturity value (FV) = $1,000 Coupon rate = 11% Time to maturity (n)…
Q: Doisneau20-year bonds have an annual coupon interest of8 percent, make interest payments on a…
A: The bond valuation refers to determining the bond's current price, Yield To Maturity, Current yield,…
Q: If interest rates remain unchanged, what do you expect the price of these bonds to be (a) 1 year…
A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…
Q: Verbrugge Company has a level-coupon bond outstanding that pays coupon interest of $120 per year and…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: What is the value of a Northern Pacific bond with an 11 percent coupon, maturing in 15 years? Assume…
A: Using excel PV function
Q: Solvay Corporation's bonds have a 10-year maturity, a 12% semiannual coupon, and a par value of…
A: Solution: Bond price is computed as present value of future interest and maturity value discounted…
Q: Nesmith corporation's outstanding bonds have a $1000 par value, and 8% semiannual coupon, 14 years…
A: Bond price is equal to present value of the future coupon payment and present value of the par value…
Q: Nesmith Corporation’s outstanding bonds have a $1,000 par value, an8% semiannual coupon, 14 years to…
A: Bonds are instruments used by organizations to get debt funds from public. Bonds pay regular coupons…
Q: The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest…
A: Solution Coupon Interest (C) = 1000*15% = 150 n = 10 periods F = 1000 P = 1250
C). A Limited's bonds bearing a coupon of 12%, pay coupons semi-annually, have three years remaining to maturity, and are currently priced at $940 per bond. What is the yield to maturity? Round your answer to 2 decimal points.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- What is the value of a bond that matures in 17 years, makes an annual coupon payment of $50, and has a par value of $1,000? Assume a required rate of return of .0590. Instruction: Type your answer in dollars, and round to two decimal placesAssume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. Bond Coupon a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return of .0702. Instruction: Type your answer in dollars, and round to two decimal places.
- What is the Macaulay duration in years of a 3% coupon bond with 2 years to maturity and a face value of $100? Assume the bond is trading at a yield of 7%, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 2 decimal places.For a company, you plan to buy the following bond: Time to maturity, 6 years; coupon rate, 8%; Coupon payment, annual; Market interest rate, 8%; Face value, $1,000. Using Excel, calculate the duration of the bond. Using Excel, calculate the accumulated value of invested payment(or receipt) when you find market interest rate a year later is now 8%, 9%, and 7%, respectively. Using Excel, calculate geometric average rate of return (or realized compound return).A three year bond has par value of $1000, coupon rate of 6% which is paid semiannually, and a price of $985. What is its yield to maturity as a percentage rounded to the nearest thousandth (.001)? (remember to annualize your answer).
- 3. A 6-year Circular File bond pays interest of $80 annually and sells for $950. Par value is $1,000 by assumption. a)What is its coupon rate? (Round your answer to 2 decimal places.) b) What is its current yield? (Round your answer to 2 decimal places.) c) What is its yield to maturity? (Round your answer to 4 decimal places.)A bond: pay $75 each year in interest, and a $1,000 payment at maturity. The $1,000 is called? A) couponB) face valueC) discountD) yieldnumerical answers should be calculated to at least two decimal places. Face value of bonds is taken as $100. assume coupon payments are paid once a year. Bond A: term to maturity=10 years, coupon rate = 9.75%, current price = $160.55. Find the current yield and yield to maturity of Bond A. Bond B: term to maturity-5 years, coupon rate = 11.25%, yield to maturity -2.35% p.a. Find the current price of Bond B. From your answer, what do say about this price when compared with the face value of the bond?
- 1. A bond with a face value of P 330,000.00 and a coupon 4% has a 5-year maturity period. Find the interest paid to the bondholder. 2. If interest is compounded quarterly how much money will P 100,000.00 be at the end of one year at 12% compounded interest? 3. If the future is 25% more than the principal after 8 months, determine the simple interest rate. answer ASAP PLEASEA bond with 16 years to maturity has an annual interest payment of $40. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY: % YTM: %2. What is the yield-to-maturity of a bond that sells for 93 (ie 93% of face value) with 5 years to maturity and a coupon rate of 7%? Assume annual interest payments and a face value of $1,000. Round answer to two decimals.