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A 15 year $5000 par value bond has a 12% semiannual coupon and a nominal yield to maturity of 8.5%. What is the price of the bond?
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?A 20-year bond has a face value of $1,000, a coupon rate of 7.5%, and a yield to maturity of 9.5%. If the bond pays semiannual coupons, what is the bonds price?
- A bond currently sells for P850. It has an 8-year maturity, an annual coupon of P80, and a par value of P1,000. What is its yield to maturity?Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timelineConsider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? What is the yield to maturity of the bond?
- Suppose a bond with a 14% coupon rate and semiannual coupons with 12% YTM and has a face value of $1000, 10 years to maturity. What is the price of the bond? Is this a premium or discount bond?A 30-year bond has a par value of $1,000, a coupon rate of 9% with semiannual coupon payment, and a market interest rate of 12%. What is the current price of the bond?2) A ten-year, 1000 TL Nominal value bond with an 30% coupon rate and semi-annual coupons is trading for a price of 1,150.00 TL. a) What is the bond's yield to maturity? b) If the bond's yield to maturity changes to 40%, what will the bond's price be?
- Suppose a 5-year, $1,000 bond with annual coupons has a price of $1,100 and a yield to maturity of 6%. What is the bond's coupon rate?A zero-coupon bond with 15 years to maturity and a face value of $1000 is priced at $239.39. What is the effective annual yield to maturity of this bond?Consider a five-year $1,000 face value bond with a 6% annual coupon rate. This bond pays annual coupons. The one-, two-, three-, four- and five-year spot interest rates are 5.5%, 5.75%, 6.25%, 6.25%, and 6.5% respectively. What is the price of this bond? What is the yield to maturity? (Chapter 6) - Consider the bond in question 3. If the bond is selling for $1,000, do you have an arbitrage opportunity? If so, please show how you build a replicating portfolio and earn an arbitrage profit. Please show the annual cash flows.