A 10-year semi-annual bond with a $1,000 face value and 8% annual coupon is trading at $1,166.62. What is the bond's effective annual yield? a) 12.36% Ob) 10.25% c) 8.16% O d) 6.09% e) None of the above
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- Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?A 14-year, $1,000 par value Fingen bond pays 6% interest annually (assume semi- annual payments). The price of the bond is $1,100 and the market's required yield to maturity on a comparable-risk bond is 5.50%. a. Compute the bonds yield to maturity. b. Determine the value of the bond to you, given your required rate of return (the YTM on a comparable-risk bond). c. Should you purchase the bond? a. b. Coupon rate Par (FV) Years (n) m PMT PV (price) YTM Coupon rate Par (FV) Years (n) m PMT PV (price) YTM 6.0% $1,000 14 2 $30 Calculation $1,100 6.0% $1,000 14 2 $30 Calculation Note: if you want PV to be a positive number, you must use a minus sign for both pmt and FV 5.50%An 8% annual-coupon bond has 3 years to maturity, a yield to maturity of 6%, and a parvalue of $1,000. What is the duration of this bond?a) 3.00b) 2.94c) 2.79d) 2.89e) None of the above
- An 8-year bond with par value of $1,000, pays a 7% annual coupon ($70). Market value of the bond is currently $1129. What is the bondholder’s required return?A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $116 and is selling at face value. What will be rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. 6% b. 11.6% c. 13.6% Rate of Return % % %A 10 - year bond with face amount 10,000 that redeems for 12,000 and that pays semiannual coupons provides a nominal annual yield of 7.62% if purchased for 10,172.75. If the bond is purchased for P and redeems at par, the annual yield is the same. Calculate P. (A) 9226 (B) 9314 (C) 10,000 (D) 10,686 (E) 10,774
- A 10 - year bond with face amount 10,000 that redeems for 12,000 and that pays semiannual coupons provides a nominal annual yield of 7.62% if purchased for 10,172.75. If the bond is purchased for P and redeems at par, the annual yield is the same. Calculate P. (A) 9226 (B) 9314 (C) 10,000 (D) 10,686 (E) 10,774 Plz solve fastAssume that a company issues a new bond with a coupon rate of 13 %, 7% yield and $110 par value bond. Coupon is paid annually. The band has three years to maturity. Calculate and interpret the Macaulay duration of this bond? (ii) Discuss about some possible limitations of the Macaulay duration.(1) Consider a 15-year 7% semiannual pay bond, if the price of the bond per $1,000 of par value is $802.24, and the investor will hold the bond to maturity. What are the following answers? a) Current yield b) Yield to maturity Total coupon interest d) Interest on interest e) Capital gain/Loss
- A 10-year semiannual bond’s coupon rate is 6%. Its current market price is $975 and par value is $1,000. What is the effective annual yield of this bond? Group of answer choices 3.1707% 6.3414% 6.4419% 6.8483%A 10-year, 12% semiannual coupon bond with a par value of $1,000 may becalled in 4 years at a call price of $1,060. The bond sells for $1,100. (Assumethat the bond has just been issued.)a. What is the bond’s yield to maturity?b. What is the bond’s current yield?c. What is the bond’s capital gain or loss yield?d. What is the bond’s yield to call?A 6.95% coupon, 9.0 -year annual bond has a yield to maturity of 3.96%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: A. Price of the bond today: B. Price of the bond in one year: C. Capital gains yield (please answer as a percentage with 2 decimal places): D. Current Yield (please answer as a percentage with 2 decimal places):
