Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with semiannual coupon payments, and a $1,000 par value. The bond offers a 6.50% yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond’s yield to call? Group of answer choices 6.20% 7.20% 6.53% 6.85% 7.55%
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Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with semiannual coupon payments, and a $1,000 par value. The bond offers a 6.50% yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond’s yield to call?
Group of answer choices
6.20%
7.20%
6.53%
6.85%
7.55%
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- Consider a bond with a face value of $1,000 that sells for an initial price of $700. It will pay no coupons for the first nine years and will then pay 11% coupons for the remaining 29 years. Choose an equation showing the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity. O A. B. O C. O D. 700 = 700 = 700 = 700 = 110 110 9 (1+i)⁹ (1+i)⁹+1 + 110 + i) ⁹ + 1 (1 + 1,000 (1+i) 29-9 1,000 (1 + i) 9 +29 + +...+ 110 (1+i) 9+2 + 110 (1 + i)9+29-1 110 + (1 + i) ⁹ + 110 (1+i)9 +29 9+29-1 + 110 (1 + i)9 +29 + 1,000 (1+i) 9+29The market price of a bond is $825.60, it has 15 years to maturity, a $1000 face value, and pays an annual coupon of $80. What is the yield to maturity? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с d e 10.34% 14.00% 16.24% 19.31% 19.95%Company Z has a bond outstanding with 20 years to maturity, a coupon rate of 9.50% with SEMIANNUAL payments, and a $1,000 par value. The bond offers a 7.50% nominal yield to maturity, but it can be called in 7 years at a price of $1,050. What is the bond's nominal yield to call? Group of answer choices 5.37% 6.39% 5.88% 6.13% 7.16%
- Wesker Industries has a bond outstanding with 15 years to maturity, a coupon rate of 8.25% with SEMIANNUAL payments, and a $1,000 par value. The bond offers a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond's nominal yield to call? (Ch. 7) Group of answer choices 6.27% 6.53% 7.31% 6.00% 5.48%Consider a bond that is currently priced at $1100. If the face value of the bond is $1000, coupon payments are made semiannually, the bond matures in 5 years, and the YTM is 3%, what is the coupon rate? Group of answer choices 5.17% 2.58% 3.00% $25.84What is the duration of a $1000 Treasury bond that pays 10% annual coupon and has 2 years remaining to maturity? The current yield is 8%. If the current yield increases to 10%, what happens to the duration? Multiple Choice 1.9106; increasing the yield to maturity decreases the duration of the bond 1.619; increasing the yield to maturity decreases the duration of the bond 1.9106, increasing the yield to maturity increases the duration of the bond 1.619; decreasing the yield to maturity decreases the duration of the bond
- A bond that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of $29.00. If the par value is $1,000, what is the current yield? O 5.80% O 3.00% O 5.71% O 6.01% A Moving to another question will save this response. Question 16 of 30> >A coupon bond that pays interest annually, has a par value of P1,000, matures in 5 years, and has a yield to maturity of 10%. The market price of the bond today will be if the coupon rate is 12%. Group of answer choices P1,077.20 P922.77 P1,075.82 P924.16Consider a risk-free zero-coupon bond with face value $1000, 20 years to maturity. If the yield to maturity (YTM) is 6%, the price at which this bond will trade is closest to: A. $167.44 B. $312 C. $214.55 D. $174
- Company Z is considering the purchase of a 20 year non-callable bond with a coupon rate of 6.70%. The bond has a face value of $1,000 and it makes SEMIANNUAL coupon payments. If the required yield to maturity on this investment is 8.20%, what is the maximum price that should be paid for this bond today? Group of answer choices $725.68 $530.82 $811.05 $887.89 $853.74A bond with face value P10,000 has a semiannual coupon rate of 6%. With a time to maturity of 3 years, the bond is sold for P10,500. What is the current yield of the buyer? Choices: a. 5.71% b. 5.55% c. 6% d. 5%Consider an annual 2 year coupon bond paying a coupon rate of 7%. If it is 1000 par and the YTM= .06 A) What is the price of this bond? Answer: 1018.33 B) What is thebond’s modified duration? Answer: 1.82 C) Use the bond’s modified duration to estimate the pricechange of the bond if YTM changes to .055. (So positiveprice change of $40.2 would be written 40.2 and a negativeprice change of $40.2 would be writen as-40. Answer: 9.29 D) Price at 10 yearsemi-annual coupon bond with a 5%coupon rate and a YTM of 8%. If par is 1000. Answer: 796.14 Note: Please explain without using excel.Thanks