A $3,000 bond with a 2.5% coupon compounded semi-annually is currently priced to yield 9% with 18 years remaining to maturity. What is the yield to maturity six years from now if the bond price rises $200 at that time? %
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- Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?A bond has a $1,000 par value, 15 years to maturity, and an 8% annual coupon and sells for $1,080. 1. What is its yield to maturity (YTM)? Round your answer to two decimal places. 2.Assume that the yield to maturity remains constant for the next five years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to maturity. If interest is paid semi-annually, what is this bond's yield to maturity?
- A $3,500 bond with a 3.5% coupon compounded semi-annually is currently priced to yield 9% with 19 years remaining to maturity. What is the yield to maturity seven years from now if the bond price rises $200 at that time? % Round to two decimal places.A bond has a $1,000 par value, 15 years to maturity, and an 8% annual coupon and sells for $1,080. What is its yield to maturity (YTM)? Round your answer to two decimal places. % Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $A $3,000 bond with a 2.5% coupon compounded semi-annually is currently priced to yield 9% with 18 years remaining to maturity. What is the yield to maturity six years from now if the bond price rises $200 at that time? Round to two decimal places.
- 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?A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. a. What is its yield to maturity (YTM)? Round your answer to two decimal places b. Assume that the yield to maturity remains constant for the next four years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. What is its yield to maturity (YTM)? Round your answer to two decimal places. % Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
- A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon and sells for $980. What is its yield to maturity (YTM)? Round your answer to two decimal places. % Assume that the yield to maturity remains constant for the next two years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $A bond has a $1,000 par value, 15 years to maturity, and an 8% annual coupon and sells for $1,080. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.A three-year bond with $1,000 face value and 10% coupon rate is sold for $1,000 today. If one year later the market interest rate increases to 15%, then this bond will have a market price of _______ next year.