Bond prices and yields Assume that the Financial Management Corporation's $1,000-par-value bond has a 7.100% coupon, matures on May 15, 2027, has a current price quote of 94.727 and a yield to maturity (YTM) of 8.005 %. Given this information, answer the following questions: a. What was the dollar price of the bond? b. What is the bond's current yield? c. Is the bond selling at par, at a discount, or at a premium? Why? d. Compare the bond's current yield calculated in part b to its YTM and explain why they differ a. The dollar price of the bond is $ (Round to the nearest cent.) CDX)
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- Assume that the Financial Management Corporation's $1,000-par valuebond has a 7.200% coupon, matures on May 15, 2027, has a current price quote of 93.748 and a yield to maturity (YTM) of 8.588%.Given this information, answer the following questions: a. What was the dollar price of the bond? b. What is the bond's current yield? c. Is the bond selling at par, at a discount, or at a premium? Why? d. Compare the bond's current yield calculated in part b to its YTM and explain why they differ.Assume that the financial anagement corporation'shas 1000 par value bond had a 5.70% coupon, matures on May 15,2020, has a current price quote of 97.708 and has yield to maturity (YTM) of 6.034%. Answer the following question:1. What was the dollar price of bond?2. What is the bond's current yield?3. Is the bond selling at par, at discount or at a premium?4. Compare the bond's current yield calculated in part B to its YTM and explain why its differ. using excelSuppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $2,000, and the current date is April 19, 2022. Company (Ticker) IOU (IOU) Coupon Maturity 7.50 April 19, 2040 a. Yield to maturity b. Current yield a. What is the yield to maturity of the bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated Last Price Last Yield Volume (000) 92.962 ?? 99 % %
- Assume that the financial anagement corporation's has 1000 par value bond had a 5.70% coupon, matures on May 15,2020, has a current price quote of 97.708 and has yield to maturity (YTM) of 6.034%. Answer the following question: 1. What was the dollar price of bond? 2. What is the bond's current yield? 3. Is the bond selling at par, at discount or at a premium?The following table summarizes prices of various default-free zero-coupon bonds ( $100 face value): Maturity (years) 1 2 3 4 5 {:[" Price (per "$100],[" face value) "]:} $96.33 $91.98 $87.41 $82.53 $77.41 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward-sloping, downward-sloping, or flat? Note: Assume annual compounding. a. Compute the yield to maturity for each bond. The yield on the 1-year bond is %. (Round to two decimal places.) The yield on the 2-year bond is %. (Round to two decimal places.) The yield on the 3-year bond is %. (Round to two decimal places.) The yield on the 4-year bond is enter your response here%. (Round to two decimal places.) Part 5 The yield on the 5-year bond is enter your response here%. (Round to two decimal places.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will…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 A
- Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 6.3 Apr 19, 2034 112.97 ?? 1,857 a. What is the yield to maturity of the bond?Suppose the following bond quote for IOU Corporation appears in the financial page of today’s newspaper. Assume the bond has a face value of $1,000, and the current date is April 19, 2022. Company (Ticker) Coupon Maturity Last Price Last Yield Estimated Volume (000s) IOU (IOU) 6.85 April 19, 2036 92.741 ?? 73 What is the yield to maturity of the bond? What is the current yield? You purchase a bond with a coupon rate of 7.6 percent, a par value of $1,000, and a clean price of $910. If the next semiannual coupon payment is due in five months, what is the invoice price? Five Star Corporation will pay a dividend of $4.15 per share next year. The company pledges to increase its dividend by 6.25 percent per year, indefinitely. If you require a return of 9 percent on your investment, how much will you pay for the company’s stock today? Fegley, Incorporated, has an issue of preferred stock outstanding that pays a $5.90 dividend every year, in…(a) On October 31, 2021, you find the following bond quote for Global Own, Inc. Answer the following questions using the information from the available sources. COMPANY COUPON MATURITY LAST PRICE HIGH LOW YIELD % Global Own, Inc. 5.55% November 2050 961.24 961.24 959.33 5.825 Questions (i) Calculate the YTM for this corporate bond issued by Global Own, Inc. (ii) Calculate this bond’s coupon yield over the next year. (iii) If your required rate of return for a bond of this risk class is 6.2%, calculate the value you place on this Global Own bond. (iv) Explain if you would be interested in purchasing this bond at the required return of 6.2%. (b) Explain the provisions are available to protect a preferred stockholder.
- A bond for the Chelle Corporation has the following characteristics: Maturity - 12 years Coupon - 12% Yield to maturity - 11.50% Macaulay duration - 6.73 years Convexity - 59.30 Noncallable Assume bond pays interest semiannually. Use only the data provided in the table above (in the problem statement) for your calculations. a. Calculate the approximate price change for this bond using only its duration, assuming its yield to maturity increased by 100 basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, if any. Percentage change in price: % When you are dealing with large yield changes to calculate more precise bond price change -Select- v on price change. b. Calculate the approximate price change for this bond, using only duration, if its yield to maturity declined by 200 basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative…Suppose the following bond quotes for IOU Corporation appear in the financial page of today's newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2021. Company (Ticker) IOU (IOU) Coupon 5.5 a. YTM b. Current yield Maturity April 19, 2037 % 5.05 % Last Price Last Yield 108.89 ?? a. What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) EST volume (000s) 1,841The return an investor earns on a bond over a period of time is known as the holding period return, defined as interest income plus or minus the change in the bond's price, all divided by the beginning bond price. a. What is the holding period return on a bond with a par value of $1,000 and a coupon rate of 7.5 percent if its price at the beginning of the year was $1,070 and its price at the end was $960? Assume interest is paid annually. Note: Negative value should be indicated by parenthesis. Round your answer to 2 decimal places. Holding period return %