7. What is the YTM of a 6-yr. bond w/a coupon rate of 12 %'yr., has...

Question

Question

business finance

Answer 1

Answer #1

Function Arguments ? x RATE Nper 1 = 120 Pmt 120 Pv -886.42 FV 1000 Type o 1 1 = -886.42 = 1000 = 0.150013086 Returns the int

Hence, Bond YTM is 15.00%

Function Arguments ? x RATE Nper 1 1 1 Pmt 120 -790.14 FV 1000 Type d = 6 = 120 = -790.14 = 1000 1 = 0.1800013 Returns the in

Hence, Bond YTM is 18.00%

Function Arguments ? x RATE 120 = 120 Nper Pmt Pv FV Type -1184.92 1000 o 1 1 = -1184.92 = 1000 = 0.079999071 Returns the int

Hence, Bond YTM is 8.00%

Please rate thumbs up

Add a comment

Answer 2

Similar Homework Help Questions

4. What is the yield to maturity (YTM) of a 20-yr. bond w/ a coupon rate of 10%/yr., has a $1K par value, and is cu...

4. What is the yield to maturity (YTM) of a 20-yr. bond w/ a coupon rate of 10%/yr., has a $1K par value, and is currently priced at $1196.36? Round your answer to the nearest whole percent. Coupons are paid annually. Calculate the YTM if the price is $850.61. Finally, calculate YTM if the price is $1000.00.
Today, a bond has a coupon rate of 8.86 percent, par value of 1,000 dollars, YTM...

Today, a bond has a coupon rate of 8.86 percent, par value of 1,000 dollars, YTM of 9.46 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond's price was 1,069.83 dollars and the bond had 11 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as.1234 and 0.98% would be entered as .0098. Number One year...
1. Suppose today a 10 percent coupon bond sells at par. Two years from now, the...

1. Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond? What is the YTM on the bond? 2. Vinya Inc. has 7.5 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent, what is the current bond price? Assume the...

(YTM w/semi annual payments) A corporate bond is priced at $1,159.25. It has a coupon rate...

(YTM w/semi annual payments) A corporate bond is priced at $1,159.25. It has a coupon rate of 5.5%, matures in 30 years, and has a face value of $1,000. What is the bonds yield to maturity?
A company has an annual coupon bond issue that has a coupon rate of 7%, a...

A company has an annual coupon bond issue that has a coupon rate of 7%, a par value of $1,000, and a current price of $1,153.19. Determine the bond’s YTC if the bond is called back 4 years from now with a call premium of 10%. Group of answer choices 5% 10% 7% $1,100 A $1,000 par value bond has an 8% coupon rate (paid semiannually). It has 5 years remaining to maturity. If bond’s current price $1,085.30, what should...
Bond X is a premium bond making semi annual payments. The bond has a coupon rate...

Bond X is a premium bond making semi annual payments. The bond has a coupon rate of 8.8 percent, a YTM of 6.8 percent, and has 13 years to maturity. Bond Y is a discount bond making semi annual payments. This bond has a coupon rate of 6.8 percent, a YTM of 8.8 percent, and also has 13 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1000. What is the price...

The YTM on a 6-month $20 par value zero-coupon bond is 18%, and the YTM on...

The YTM on a 6-month $20 par value zero-coupon bond is 18%, and the YTM on a 1-year $20 par value zero-coupon bond is 20%. These YTMs are semiannual BEYs. What would be the arbitrage-free price of a 1-year bond with coupon rate of 20% (semiannual payments) and par value of $1000? Assume that this bond is issued by the same company as the zero-coupon bonds.
ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond...

ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM? ABC issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM? A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity...
1. (12 points) A bondholder owns one corporate bond that pays semi-annual coupons, has 6 percent...

1. (12 points) A bondholder owns one corporate bond that pays semi-annual coupons, has 6 percent coupon rate, and a face value of $1000. The bond has 5 years to maturity, and it currently traded at par. (1) Based on the information that the bond is traded at par, what is the YTM of the bond currently? (2) If the YTM of the bond rises to 7 percent one year later, what is the new price of the bond? (3)...

A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?

1. A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with...