Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- The following information is regarding outstanding bonds issued by Midas Corp. Coupon (%) Maturity Yield to Maturity (%) Fitch Ratings 6.75 2029 3.85 4.95 2044 4.32 a. Discuss the relation among the coupon rate, price, and yield for the bond maturing in 2029. Price 130.50 115.75 A Aarrow_forwardCalculate the current yield on the described bond. A $500 Treasury bond with a coupon rate of 3.2% that has a market value of $425 The current yield is %. (Round to two decimal places as needed.)arrow_forwardYou find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate 22 6.052 6.143 Maturity Month/Year: May 33 May 36 May 42 Bid 103,4560 104.4900 22 Yield to maturity Asked 103.5288 104.6357 ?? Change Ask Yield. +.3248 +4245 +.5353 5.919 ?? 3.951 In the above table, find the Treasury bond that matures in May 2036. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.arrow_forward
- A brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? A. 13.71% B. 13.61% C. 27.27% D. 11.28% E. 22.60%arrow_forwardYou find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Yield to maturity Coupon 6.60 7.24 ?? % Maturity January 15, 2045 January 15, 2039 January 15, 2041 Last Price Last Yield 94.327 ?? ?? 6.26 94.855 7.08 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated $ Volume (0005) 57,374 48,953 43,814arrow_forwardYou find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 7.200 7.300 ?? a. Price b. Current yield Maturity January 15, 2039 January 15, 2033 January 15, 2035. % Last Price Last Yield 94.399 ?? ?? 6.38 94.915 7.20 Estimated $ Volume (000s) a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 57,380 48,959 43,820arrow_forward
- Please answer all questions with explanations thx.arrow_forwardConsider the following par bond (ie coupon rate=yield):Maturity: 1 2 3 4 5YTM: 5%; 4.5%; 4%; 3.5%; 3.2% Q4. Price a 5 year 2% coupon bond. What is the YTM for the bondarrow_forwardYou find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid 103.4586 104.4926 ?? Yield to maturity Asked 103.5314 % 104.6383 ?? Change Ask Yield +.3274 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. What is your yield to maturity if you buy this bond? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. +.4269 +.5379arrow_forward
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