This $1,000 par value bond makes semi-annual coupon interest payments. If you purchased this bond, what would be the bond's yield to maturity? Assume you are in 2021.
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- K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {An XYZ April 2051 bond with a 9.96 percent coupon interest rate and a par value of $1,000.00 recently had a price of 88.688. Calculate the following: a. When will the bond mature? b. How much will you have to pay to purchase this bond? c. What is the current yield based on the price that you calculate in part b? *** a. The bond will mature in the year b. To purchase this bond, you would have to pay $ nearest cent.) c. The current yield is%. (Round to two decimal places.) (Type a whole number.) (Round to the6. Yield to Maturity Each of the bonds shown below pays interest annually. Bond Par Value Coupon Years to Maturity Current Value A 12% 15 B 10% 10 C $1000 13% 10 D $1000 8% 4 a) Calculate the yield to maturity (YTM) for each bond. $1000 $500 $850 $560 $1200 $900 b) What relationship exists between the coupon rate and yield to maturity and the par value and market value of a bond? Explain.
- O ook int ences You find the following Treasury bond quotes. To calculate the number of years until maturity, assu of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Yield to maturity Asked Bid 103.4560 103.5288 104.4900 104.6357 ?? Change Ask Yield +.3248 5.00 % +.4245 +.5353 In the above table, find the Treasury bond that matures in May 2036. What is your yield to matur Note: Do not round intermediate calculations and enter your answer as a percent rounded to 5.919 ?? 3.9512:37 a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 14-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $850 and the market's required yield to maturity on a comparable-risk bond is 13 percent. a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? % (Round to two decimal places.) ||| Vo) 1 LTE2 = O 4Gl 41%ok ht nces You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid Asked Change 103.4586 103.5314 +.3274 104.4926 104.6383 +.4269 ?? +.5379 ?? Yield to maturity Ask Yield 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
- The following RJR Nabisco bond is listed in a recent issue of The Wall Street Journal: Cur Yld Vol Close Net ChgRJR Nb 8 7.9 60 101.25 +1.125 This $1,000 par value bond has 4 years to maturity and makes semi-annual coupon interest payments. If your required rate of return is 9.5%, what would be the bond’s intrinsic value?Intro You purchase the following bond. The bond makes interest payments on April 10 and Oct. 10 of every year: 1 Purchase date 8/19/2021 2 Maturity date 10/10/2037 3 First call date 4/10/2029 4 Coupon rate 2.8% 5 Price 83.7 6 Face value 100 7 Payment frequency 8 Day count basis 30/360 9 Call price 134.18 What is the bond's yield to maturity using Excel's YIELD function? What is the bond's yield to call using Excel's YIELD function?If the YTM on the following bonds are identical except, what is the price of bond B? Bond A Bond B Face value $1,000 $1,000 Semiannual coupon $45 $35 Years to maturity 20 20 Price $1,098.96 ?
- Q12 Sony company has zero-coupon bonds maturing in 2040. The yield to maturity for these bonds is 6%. Assume that the face of the bond is OMR 100. What is the price of bond in 2020? a. OMR 94.339 b. OMR 31.181 c. OMR 30.656 d. OMR 59.189Consider the following $1,000 face value bond which makes semi-annual coupon payments, Bond Coupon rate Price Maturity Settlement Date CIBC 6% 99.04 December 1, 2030 January 26, 2019 What is the total price you would pay for this bond? Enter your answer rounded to two decimal places. NumberINV3 P1a Bond # 1 2 3 4 1 - year strip bond 2- year strip bond 2-year 6% coupon bond 2-year 7% coupon bond Purchase Price for the bond) 950 ? ? ? Year 1 cash flow 1000 0 60 70 Year 2 cash flow 0 1000 1060 1070 Yield to Maturity ? ? 5.50% ? Fill in the missing pieces from the following table using the Law of One Price. Assume all these bonds have the same risk, the yield curve is flat, and any coupon payments are paid annually.