General Electric has just issued a callable (at par) 10-year, 6.3% coupon bond with annual coupon payments. The ba can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $101.68. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst? *** a. What is the bond's yield to maturity? The bond's yield to maturity is%. (Round to two decimal places.) b. What is its yield to call? The yield to call is%. (Round to two decimal places.) c. What is its yield to worst?

General Electric has just issued a callable (at par) 10-year, 6.3% coupon bond with annual coupon payments. The ba can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $101.68. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst? *** a. What is the bond's yield to maturity? The bond's yield to maturity is%. (Round to two decimal places.) b. What is its yield to call? The yield to call is%. (Round to two decimal places.) c. What is its yield to worst?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Boeing Corporation has just issued a callable (at par) three-year, 4.7% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $97.71 .a. What is the bond's yield to maturity?b. What is its yield to call?c. What is its yield to worst?
A bond that pays interest semiannual has a price of 981.45 and semiannual coupon payment of 28.50. If the par value is 1000. What is the current yield?
A risk-free, zero-coupon bond with a $1000 face value has 2 years to maturity. The yield to maturity of this bond is 2%? What is the fair price to pay for this bond?
Suppose a seven-year, $1,000 bond with a 7.7% coupon rate and semiannual coupons is trading with a yield to maturity of 6.51%. 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 7.38% (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.) OA. 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 a premium. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. OD. Because the yield to maturity is greater than the coupon rate, the bond is trading at par.
Suppose a seven-year, $1,000 bond with a 7.97% coupon rate and semiannual coupons is trading with a yield to maturity of 5.53%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 6.09% (APR with semiannual compounding), at what price will the bond trade?
Need help finding the current yield for both bond P and D, & the capital yield gains for both bonds P and D. Thank you in advance
K Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.0% (annual payments). The yield to maturity on this bond when it was issued was 6.0%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? KIER After the first coupon payment, the price of the bond will be $. (Round to the nearest cent.)
A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?
A 30-year maturity bond making annual coupon payments with a coupon rate of 11.00% has a ation of 13.50 years. The bond currently sells at a yield to maturity of 5.75%. Ducation a. Find the exact dollar price of the bond if its yield to maturity falls to 4.75%. What is the % change in price? b. Assume that you need to make a quick approximation using the duration rule. What is the % change in price as approximated by the duration rule when the yield to maturity falls to 4.75%? c. Does the duration-rule provide a good approximation of the % price change in this case? Why or why not?
6.
Suppose you purchase a $1000 Face-Value Zero-Coupon Bond with maturity 30 years and yield to maturity 4% quoted with annual compounding. Show the bond cash flows on a time line and compute the current price of the bond Draw a graph to illustrate how the price of this bond will change as it gets closer to maturity – Price (on y axis) vs Time (on x axis). Why is a zero-coupon bond more sensitive to interest rate changes than similar coupon bearing bonds (2 or 3 sentences)?
A bond pays zero coupons and has face value 10001000. The bond has exactly two years until it matures and has a yield to maturity of 6.4%6.4%. Assume that the price of this bond equals 883.32883.32. What is the modified duration of this bond?

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