1.
Number of Years to Maturity = 10
PMT = 9%*5000 = $450
Par Value= $5000
Market Price = $6500
Yield = (PMT + (Par Value - Market Price)/Number of Years to Maturity) / ((Par Value + Market Price)/2)
= (450 + (5000 - 6500)/10) / ((5000 + 6500)/2) = 0.0522 or 5.33%
2.
Number of Years to Maturity = 25
PMT = 12%*1000 = $120
Par Value= $1000
Market Price = $1760
Yield = (PMT + (Par Value - Market Price)/Number of Years to Maturity) / ((Par Value + Market Price)/2)
= (120 + (1000 - 1760)/25) / ((1000 + 1760)/2) = 0.0649 or 6.49%
3.
Number of Years to Maturity = 5
PMT = 10%*1000 = $100
Par Value= $1000
Market Price = $1000
Yield = (PMT + (Par Value - Market Price)/Number of Years to Maturity) / ((Par Value + Market Price)/2)
= (100 + (1000 - 1000)/5) / ((1000 + 1000)/2) = 0.10 or 10%
4.
Number of Years to Maturity = 20
PMT = 6%*1000 = $60
Par Value= $1000
Market Price = $650
Yield = (PMT + (Par Value - Market Price)/Number of Years to Maturity) / ((Par Value + Market Price)/2)
= (60 + (1000 - 650)/20) / ((1000 + 650)/2) = 0.0939 or 9.39%
Yield to maturity. What is the yield of each of the following bonds if interest (coupon)...
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Yield to maturity. What is the yield of each of the following bonds,if interest (coupon) is paid quarterly? a X + -ox Amazon.com Thanks You x > new.wellcom.us x 1911162167 X Pearson's MyLab & Masterin X Do Homework - Volodymyr x C Get Homework Help With C → C mathxl.com/Student/PlayerHomework.aspx?homeworkld-5360361608questionld-13&flushed-false&cld-5596569&back-Do Assignments.aspx?view-homework € FIN 250 001 FA '19 Volodymyr Mogylevych ! Save Homework: Chapter 6 Homework Score: 0 of 1 pt P6-7 (similar to) 7 of 14 (5 complete) HW Score:...
Bond prices. Price the bonds from the following table with semiannual coupon payments. (Round to the nearest cent.) Par Value Coupon Rate Years to Maturity Yield to Maturity Price $5,000.00 7% 25 11% ?_____ $1,000.00 10% 30 9% ?_____ $1,000.00 11% 25 12% ?_____ $5,000.00 12% 30 7% ?_____