A 25-year, $1,000 par value bond has a 7.5% annual payment coupon. The bond currently sells for $946.63. If the yield to maturity remains at its current rate, what will the price be 7 years from now?
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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?A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. Assume a face value of $1,000 and annual coupon payments.a) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time?b) What will be the rate of return on the bond? c) If the inflation rate during the year is 3%, what is the real rate of return on the bond? Assume annual interest payments.A 10-year, 12% semiannual coupon bond currently sells for $1,100. If the yield to maturity in the next 6 years equal its current yield, what will the price be 6 years from now?
- A 25 years $1000 par value bond has an 8.25% annual coupon. The bond currently sells for $1100. If the yield to maturity remains at its current rate, what will the price will be 9 years from now? State whether it is a discount or Premium bond?A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yieldto maturity remains at its current rate, what will the price be 5 years from now?A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. Assume a face value of $1,000 and annual coupon payments. 1) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time? 2) What will be the rate of return on the bond? 3) If the inflation rate during the year is 3%, what is the real rate of return on the bond? Please show workings with formulas.
- A 20-year, $1,000 par value bond has a 9.5% yield to maturity. The bond currently sells for $867.81. If the annual coupon rate remains at its current rate, what will the price be 5 years from now?A bond has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. a) If the bond has a yeild to maturity of 9% 1 year from now, what will its price be at that time? b) What will be the rate of return on the bond? c) Now assume that interest is paid semannually. What will be the rate of return on the bond? d) If the inflation rate during the year is 3% what is the real rate of return on the bond?A bond has 10 years until maturity, a coupon rate of 7.2%, and sells for $1,180. Interest is paid annually. (Assume a face value of $1,000.) If the bond has a yield to maturity of 10.8% 1 year from now, what will its price be at that time?