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| A bond has a 6.5% yield to maturity and coupons paid semiannually. What is the bond's effective annual yield (EAY)? |
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- What is a discount ask yield on a bond? if the bond is priced at 1,000 and 80 days to maturity and has a discount ask yield of 3.4%?A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?A par bond has a yield to maturity of 5.8% and pays coupons semi-annually. What is the coupon payment? Answer:
- The bond shown in the following table attached pays interest annually. a. Calculate the yield to maturity (YTM)for the bond. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain.A bond's semi-annual coupon is $52.9. What is the coupon rate?A 6-year bond pays interest of $80 annually and sells for $975. What is its coupon rate, current yield, and yield to maturity?
- The bond shown in the following table pays interest annually in the table attached. a. Calculate the yield to maturity (YTM) for the bond. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain.A bond that pays interest semiannually has a coupon rate of 5.08 percent and a current yield of 5.37 percent. The par value is $1,000. What is the bond's price?A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25 each. What is the coupon rate?
- Assume you have a bond with a semi-annual interest payment of $50, a par value of $1 comma 000, and a current market price of $870. What is the current yield of the bond?A bond quotes a rate of return of 5% and will pay $1,000 in one year with a probability of 42% and $0 with a probability of 58%. part A)What is the time premium? part B)What is the default premium?Assume a bond has duration of 2.75 at a required yield of 6%. If the yield were to increase from 6% to 6.75%, by what percent, and in what direction, would the bond’s price change?