Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Find the current yield (as a %) of a bond whose coupon rate is listed as 6.875 and currently selling at a premium of 106.875. Round to the nearest tenth percent. X % Neodlarrow_forwardMaturity (years) Price 2.83% 5.79% The above table shows the price per $100-face value bond of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero- coupon, risk-free bond shown? 2.85% 12.07% 1 $97.25 2.89% 3 2 $94.53 $91.83 5 4 $89.23 $87.53arrow_forwardCalculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage to one decimal place.) Company Coupon Rate Annual Interest Company 5 8.25% +A Market Price 104.00 Current Yield %arrow_forward
- All steparrow_forwardSunnyfax Publishing pays out all its earnings and has a share price of $37.00. In order to expand, Sunnyfax Publishing decides to cut its dividend from $3.00 to $2.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 14%. If the reinvestment does not affect Sunnyfax's equity cost of capital, what is the expected share price as a consequence of this decision? O$45.87 $40.14 $68.81 $57.34arrow_forwarda) calculate the value of each of the bonds shown in the following table, all of which pay interest monthly. Bond Par value coupon interest rate yeras to maturity required stated annual return A $1000 10% 12 8% B $1000 12% 20 12% C $500 12% 5 14% D $1000 14% 10 10% E $100 6% 4 14%arrow_forward
- What is the yield to maturity of a five-year, $5,000 bond with a 4.4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,704? OA: 5.78% B. 6.93% C. 2.89% OD. 8.09%arrow_forwardCh. 8. Calculating Yield to Market. Flowerpot Corp. has a bond outstanding with a coupon rate of 5.5 percent and annual payments. The bond currently sells for $919.81, matures in 11 years, and has a par value of $1,000. What is the YTM of the bond? Format as a percentage and round to two places past the decimal point as "X.XX"arrow_forward
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