Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A 2-year discount bond with a face value of 1100 was purchased for 1000. What is the yield to maturity?
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- What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of $1,000, and a price of $987.25? What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid SEMIannually, par value of $1,000, and a price of $987.25?arrow_forwardWhat is the yield to maturity for the following bond: current price is $908, coupon rate is 11 percent, $1,000 par value, interest paid semiannually, eight years to maturity?arrow_forwardAn investor buys a 4.7% annual payment bond with 8 years to maturity. The bond is priced at a yield - to - maturity of 6%. What is the bond's Macaulay duration?arrow_forward
- A 4-year bond, with a face value of $1000, and a coupon rate of 5% (coupon is paid semi-annually), has current yield of 4.76%. Is this bond sold at a discount, or at a premium? Determine the yield to maturity of this bond.arrow_forwardWhat are the steps and explanation for determining the current value of BondB that matures in 2 years and it has the same interest rate (yield) as Bond A. BondA matures in 1 year, has a current price (PV) of $800 and a face value (FV) of $1000.arrow_forwardShow me the steps with explanations to calculate the bond's time to maturity given the a discount bound is bought at a current price of $1000 and it promises to pay $1340 with an interest rate (yield) of 5%.arrow_forward
- A 7.5 percent bond has a yield to maturity of 6.5 percent. The bond matures in seven years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each coupon payment?arrow_forwardIf the annual interest rate printed on the face of a bond is 10 percent, the face value of the bond is $1,000, and you purchase the bond for $1,250, what is the current yield on the bond? O A. 5 percent. O B. 6 percent. OC. 12.5 percent. O D.8 percent.arrow_forwardA $1000 bond with semi-annual coupons is redeemable at 103 in 5 years. The absolute value of the write down (book value adjustment) in the first coupon is $3.99 and the absolute value of the write down (book value adjustment) in the 5th coupon is $4.85. What is the price of the bond?arrow_forward
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