A discount bond has been sold to investors at $1,122 and has a stated coupon rate...

Question

Question

A discount bond has been sold to investors at $1,122 and has a stated coupon rate of $50. When it matures in 10 years, what is the yield to maturity

business finance

Answer 1

Answer #1

Assuming face value to be $1000

Yield to maturity = 3.53%

Keys to use in a financial calculator:

FV 1000

PV -1,122

PMT 50

N 10

CPT I/Y

Answer 2

Similar Homework Help Questions

A discount bond has been sold to investors at $1,122 and has a stated coupon rate...

A discount bond has been sold to investors at $1,122 and has a stated coupon rate of $50. When it matures in 10 years, what is the yield to maturity? Group of answer choices 5.93% 12.2% 3.53% 3.78%
5. A bond is sold at S923.14 (at a discount from its face value of 1,000)....

5. A bond is sold at S923.14 (at a discount from its face value of 1,000). The bond has 15 years to maturity and the investors require a 10 percent yield on the bond. What is the coupon rate for the bond if the coupon is paid annually?
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...

2. A coupon bond pays annual int coupon rate of 10%, and has a yield to...

2. A coupon bond pays annual int coupon rate of 10%, and has a yield to maturity of annual interest, has a par value of $1.000, matures in 4 years, has a ed to maturity of 12%. The current yield on this bond is a. 10.52% b. 10.45% c. 10.95% d. 10.65% e. none of the above 3. A coupon bond that pays interest annually is selling op and has a coupon rate of 9%. The yield to maturity on...
Question Find the equilavent years to maturity ofa zero-coupon bond to one that has a coupon...

Question Find the equilavent years to maturity ofa zero-coupon bond to one that has a coupon rate of 8.60%, 5 years to maturity and a yield to maturity of 9.20% Find the equilavent years to maturity of a zero-coupon bond to one that has a coupon rate of 660% (annual coupons) 10 years to maturity, and a yield to maturity 3 of 6.00%. Find the approximate percentage change in the price of a bond due to a 10 basis point...
A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5...

A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5 years until it matures. The current yield to maturity is 7% a. What is the price of the bond? ___________ b. What is the amount of the annual interest paid to the bondholder? ___________ c. Is this a discount bond or a premium bond? ______________________

A zero coupon bond has a face value of $1,000 and matures in 6 years. Investors...

A zero coupon bond has a face value of $1,000 and matures in 6 years. Investors require a(n) 7.2 % annual return on these bonds. What should be the selling price of the bond? If the nominal rate of interest is 12.21 % and the real rate of interest is 8.76 % what is the expected rate of inflation? A Ford Motor Co. coupon bond has a coupon rate of 6.75%, and pays annual coupons. The next coupon is due...
5. A corporate bond matures in 10 years. The bond has an 8 percent semiannual coupon...

5. A corporate bond matures in 10 years. The bond has an 8 percent semiannual coupon and a par value of $1,000. The bond is callable in five years at a call price.of S1.050. The price or the bond today is $1,075 A. (8 pts) What is the bond's nominal yield to maturity? B. (8 pts)What is the bond's nominal yield to call? C. (2pts) If you bought this bond, which return do vou think you would actually earn? D....
1)A Ford Motor Co. coupon bond has a coupon rate of 7%, and pays annual coupons....

1)A Ford Motor Co. coupon bond has a coupon rate of 7%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 40 years from tomorrow. The yield on the bond issue is 6.15%. At what price should this bond trade today, assuming a face value of $1,000? The price of the bond today should be $ 2) If the nominal rate of interest is 13.07% and the real rate of interest is 7.09 % what...

If a coupon bond has two years to maturity, a coupon rate of 10%, a par...

If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term...