HomeworkLib
Question

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5% (paid semiannuall) on a $1000 par value. if it is currently selling in the market for $1140, what is its yield to maturity?

9.18%

8.23%

7.89%

6.84%

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

7.89%

Yield to maturity =RATE(nper,pmt,pv,fv)*2
= 7.89%
Where,
nper = 30
pmt = $         47.50
pv = $ -1,140.00
fv = $   1,000.00
0 0
Add a comment
Know the answer?
Add Answer to:
a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. A bond with two years remaining until maturity offers a 3% coupon rate with interest...

    1. A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, find the price of this bond per 1000 of par value. 2. A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures in seven years. At a market discount rate of 3%, find the price of this bond per 1000 of par value. 3. A zero-coupon bond matures in...

  • A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15...

    A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15 years. The current market yield is 7%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?

  • A callable bond has 15 years to maturity and can be called in 5 years. The...

    A callable bond has 15 years to maturity and can be called in 5 years. The bond’s coupon rate is 12% with semi-annual coupon payments. The par value is $1000. If the bond is called, the call price will be $1100. The bond is currently selling for $1055.35 What is the difference between its yield-to-call and yield-to-maturity?

  • A fixed coupon bond with 12 years left until maturity has a coupon rate of 7%...

    A fixed coupon bond with 12 years left until maturity has a coupon rate of 7% paid semi-annually. If the price of the bond is $1,060, its annual yield to maturity is _______%. Par value is $1,000. A. 6.281 B. 6.274 C. 3.137 D. 6.395

  • ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate...

    ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate of 9% and a $1000 par value, pays interest annually, and as 18 years to maturity Calculate the yield to maturity (YTM) on this bond Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond. The yield to maturity on this bond is %. (Round to three decimal places.) ....

  • A bond with a par value of $1,000 and an annual coupon rate of 9.5% has...

    A bond with a par value of $1,000 and an annual coupon rate of 9.5% has a yield to maturity of 6.4%. If the bond has 11 years to maturity, what is its current yield?

  • 1) Sam owns a $1000 par value corporate bond with 10 years to maturity and 5%...

    1) Sam owns a $1000 par value corporate bond with 10 years to maturity and 5% coupon rate. If the current interest rate is 10%, what is the current price of the bond. 2) Calculate the current price of a 3-year semi-annual bond with 5% coupon rate and 6% market discount rate. Assume par is $1000. 3) A bond that was first issues exactly two years ago today had an original maturity of 17 years, a coupon rate of 7.5%,...

  • A bond offers a coupon rate of 12%, paid annually, and has a maturity of 9...

    A bond offers a coupon rate of 12%, paid annually, and has a maturity of 9 years. The current market yield is 11%. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?

  • 1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and...

    1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and the par value is 1000. the bond is callable in 2 years at a call price of $1050. the price of the bond today is $1075. what is the bonds yield to call? 2. midea cooperation bonds mature in 3 years and have a yield to maturity of 8.5%. the par value is 1000. the bond has a 10% coupon rate and pay interest...

  • e none of the above 6. A corporate bond matures in years. The value of 51000....

    e none of the above 6. A corporate bond matures in years. The value of 51000. The bond is callable in two year today is $1075. What are the bond' yield to call? .3.16 6.4.5% as an 8% semiannual coupon and a par "price of S1050. The price of the bond lave a yield to maturity of 8.5%. The par value ate and pay interest on semiannual basis. 7. Mides cooperation bonds mature in 3 years and have a yield...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT