What is the coupon rate of a 8-year, $1000 bond with coupons paid semiannually and a price of $6900, if it has a yield to maturity of 8.5%.?
Face Value = $1,000
Current Price = $6,900
Annual YTM = 8.50%
Semiannual YTM = 8.50% / 2
Semiannual YTM = 4.25%
Time to Maturity = 8 years
Semiannual Period = 16
Let semiannual coupon be $C
$6,900 = $C * PVIFA(4.25%, 16) + $1,000 * PVIF(4.25%, 16)
$6,900 = $C * (1 - (1/1.0425)^16) / 0.0425 + $1,000 *
(1/1.0425)^16
$6,900 = $C * 11.440309 + $513.786847
$C * 11.440309 = $6,386.213153
$C = $558.22
Semiannual Coupon = $558.22
Annual Coupon = 2 * Semiannual Coupon
Annual Coupon = 2 * $558.22
Annual Coupon = $1,116.44
Coupon Rate = Annual Coupon / Face Value
Coupon Rate = $1,116.44 / $1,000
Coupon Rate = 1.1164 or 111.64%
What is the coupon rate of a 8-year, $1000 bond with coupons paid semiannually and a...
What is the coupon rate of a 8-year, $1000 bond with coupons paid semiannually and a price of 6900, if it has a yield to maturity of 8.5%. what is the coupon payment of a 4-year $1000 bond, 7.5%YTM, and with a 4% coupon rate and quarterly payments subject: finance
What is the coupon rate of a 8-year, $10000 bond with coupons paid semiannually and a price of $8900, if it has a yield to maturity of 6%?
Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons are paid semiannually. The yield to maturity is 6% and the face value of the bond is $1000.
Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons are paid semiannually. The yield to maturity is 6% and the face value of the bond is $1000.
A $ 1000 bond with a coupon rate of 6% paid semiannually has eight years to maturity and a yield to maturity of 9%. If interest rates rise and the yield to maturity increases to 9.3%, what will happen to the price of the bond?
The yield to maturity of a $1000 bond with a 6.7% coupon rate, semiannual coupons, and two years to maturity is 7.6% APR, compounded semiannually, what is the price?
4) A $1000 bond with a coupon rate of 7.0 % paid semiannually has ten years to maturity and a yield to maturity of 8.1%. If the yield to maturity increases to 8.4%, what will happen to the price of the bond? A) The price of the bond will rise by $19.05. C) The price of the bond will fall by $22.86. B) The price of the bond will fall by $19.05. D) The price of the bond will not...
Suppose that a 25-year government bond has a maturity value of $1000 and a coupon rate of 4%, with coupons paid semiannually. Find the market price of the bond if the yield rate is 3% compounded semiannually. (Round your answer to the nearest cent.) Is this bond selling at a discount or at a premium? O discount premium
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
Suppose a ten-year, $ 1000 bond with an 8.6 % coupon rate and semiannual coupons is trading for $1,035.22. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.3 %APR, what will be the bond's price?