Firm B has a 13-year, 5.5 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 6.72 percent. What is the % price change if the yield suddenly increases to 8.36 percent?
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Firm B has a 13-year, 5.5 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 6.72 percent. What is the % price change if the yield suddenly increases to 8.36 percent?
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- Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?Suppose a 10-year, $1,000 bond with an 8.6% coupon rate and semi-annual coupons is trading for a price of $1,035.22. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.3% APR, what will the bond's price be? **** a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)← Suppose a seven-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading with a yield to maturity of 6.65%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.05% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) O A. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. OC. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount.
- What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is 15 years, and sells for 119% with coupons rate of 10%? Assume the par value of the bond is $1,000. DO NOT USE EXCEL to work answers SHOW ALL WORKINGSQ1. (a) Suppose a 6 percent coupon, $1,000 bond with ten years left to maturity is selling for $1,100.What is the yield, assuming that interest is paid quarterly? (b) Assume that the bond in (a) above pays interest semi-annually. What would the bond sell for, given that the investor/market wants to earn the same yield as calculated in (a)? c) Assume that the bond in (a) above pays interest monthly. What would the bond sell for, given that the investor/market wants to earn the same effective yield as calculated in (a)? Q2. A firm has just issued (January 1, 2019) a bond that has a face value of $1,000, a coupon rate of 6 percent paid semi-annually (June 30, December 31), and matures in 8 years. The bonds were issued with a yield to maturity of 7%. What price were the bonds issued at? Assume that on July 1, 2021, the bond trades to earn an effective yield of 10%. At what price should this bond be trading for on July 1, 2021? PRICE WHEN ISSUED: PRICE ON JULY 1, 2021: Q3. (a) (a) You are…4. a. A perpetual bond has Tk. 1,200 face value and provides a 10.5% coupon. If themarket price of the bond is Tk. 1,050, what is its yield to maturity? 03b. A zero-coupon, Tk. 1000 face-value bond is currently selling for Tk. 208 andmatures in exactly 10 years. What is the required rate of return on this bond? 04c. ABC Company has outstanding, an 10 percent, four year, Tk. 1,000 par valuebond on which interest is paid monthly. If the market rate of return is 15 percent,what is the intrinsic value of the bond?
- ← Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,034.51. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)Q a) A semiannual-coupon bond has a coupon rate of 6.5%, with a par value of RM 1000. The bond has remaining 8 years to maturity and a yield to maturity of 6.15%. Estimate the likely percentage change in this bond price if the market yield suddenly increases to 7.5%? b) You have collected the information of yield curve as shown below: Maturity 1-year 2-year 3-year 4-year 5-year Yield 6.20% 6.35% 6.50% 6.75% 6.80% Assuming that the pure expectations theory is the correct theory of the term structure, forecast the (i)the 3-year interest rate next year; and (ii)annual interest rate after 2 years c) Briefly discuss four (4) possible factors that might affect your forecast accuracy in part (b) above.Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,037.12. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be?
- Suppose a 10-year, $1,000 bond with a coupon rate of 8.7% and semiannual coupons is trading for $ 1,034.28 a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b If the bond's yield to maturity changes to 9.9% APRwhat will be the bond's price?Suppose a ten-year, $1,000 bond with a 8.9% coupon rate and semiannual coupons is trading for$1,035.32. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price? The bond's yield to maturity is ______%. (Round to two decimal places.)General Electric has just issued a callable (at par) 10- year, 5.7% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $ 102.15. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst? Question content area bottom enter your response here %. (Round to two decimal places.)