Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
Calculate the current yield on the described bond.
A $2000 Treasury bond with a coupon rate of 4.3% that has a market value of
$1625.
The current yield is %? round to two decimal places as needed
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Listen Calculate the current price of a $1,000 par value bond that has a coupon rate of 7 percent, pays coupon interest annually, has 21 years remaining to maturity, and has a current yield to maturity (discount rate) of 14 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).arrow_forwardCalculate the current yield on the described bond. A $500 Treasury bond with a coupon rate of 4.3% that has a market value of $475 The current yield is %. (Round to two decimal places as needed.)arrow_forwardWhat is the price of a bond with a coupon rate of 7%, payable semi-annually, a face value of $1000, 7 years to maturity, and a yield to maturity of 6.8%? Enter your response below. Enter your answer to 2 DECIMAL PLACES. Numberarrow_forward
- Find the yield to maturity (YTM) for a 10-year, 5% annual coupon rate, $1,000 par value bond if the bond sells for $918 currently? We assume that interest is paid on this bond annually. 6.12% 6.91% 7.33% 7.86% Using the information from Question 38, calculate the bond’s current yield. 5.00% 5.45% 6.50% 8.21% Using the information from Question 38 and 39, calculate the bond’s capital gain yield. -0.35% 0.35% 0.67% -0.67%arrow_forwardWhat is the duration of the following bond:$1,000par value,6%annual coupon, 4 years to maturity, and yield to maturity of6.5%? You will need your answer for the next question. In the prior question, what is the present value of the bond?arrow_forwardA bond with a 6% annual coupon matures in 5 years and has a price of $961. Compute the current yield for this bond. Show your answer in percent to 1 decimal place (i.e. xx.y).arrow_forward
- A bond with a maturity of 14 years sells for $1,113. If the coupon rate is 7.7 percent, what is the yield to maturity of the bond? Round your answer to 2 decimals. Yield to maturity %arrow_forwardCalculate the duration (and price ) of a bond with the following characteristics: A semi - annual payment bond with a $1,000 face value, a 4.5% coupon rate, a 7.8% YTM, and 8 years to maturity. Show your table of calculations or show Excel inputs if using the Excel commands.arrow_forwardSuppose a 5-year, $1,000 bond with annual coupons has a price of $904.09 and a yield to maturity of 6.1%. What is the bond's coupon rate? The bond's coupon rate is % (Round to three decimal places.)arrow_forward
- Vhat is the yield of each of the following bonds, E, if interest (coupon) is paid quarterly? of the following bond if interest (coupon) is paid quarterly? (Round to two decimal places.) Years to Maturity 6 Data Table Coupon Rate 6% 10 d of the following bond if interest (coupon) is (Click on the following icon o in order to copy its contents into a spreadsheet) Yedrsta Maturity 10 20 Yield to Maturity Years to Maturty Per Valud $5,000.00 $5,000.00 $1.000.00 $5,000.00 (Coupon ata 6% 8% Prico S3,740.00 $5,000.00 S800.00 $4.900.00 Coupon Rate 8% 20 5% 7% 30 25 Print Donearrow_forwardSuppose a five-year bond with an 8% coupon rate and semi-annual compounding is trading for a price of £951.58. Calculate the bond's yield to maturity (YTM) based on the expression of an annual percentage rate (APR).arrow_forwardNeed help finding the current yield for both bond P and D, & the capital yield gains for both bonds P and D. Thank you in advancearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education