How to calculate the value of a bond that matures in 16 years and has a 1,000 par value. The annual coupon interest rate is 15 percent and the market required yield to maturity on a comparable - risk bond is 13 percent.
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- What is the purchase price for a bond that is paying 6 percent annual coupon rate in Semi-annual payments if its Yield to Maturity is 10 % and it has 10 years and 10 months from its purchase date until its maturity? What is the accrued interest rate? Assume the bond is traded in a year of 366 days when calculating the accrued interest.Calculate the value of a bond that matures in 15 years and has $1,000 par value the annual interest rate is 11% and the market requires a yield to the maturity on a comparable risk bond is 15%. What is the value of the bond?Consider a bond with one year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid semi-annually), and an interest rate (either required rate of return or yield to maturity) of 20 percent. What is the duration of the bond?
- Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promise yield to maturity?What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a semi-annual coupon payment, and a face value of $1,000?Consider a bond paying an annual coupon of $70 with a face value of $1,000. Calculate the yield to maturity if the bond has 18 years remaining to maturity and is priced at $1,150. What would be the holding period yield if the bond is held for 15 years and sold at $1,100?
- A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded semi-annually. If this bond is priced at $1,093.34. What is the yield-to-maturity stated as an APR with semi-annual compounding?What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to maturity, and a current price of $959? What is the modified duration? Duration is __. years. Modified duration is __ years.Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline
- What is the approximate yield to maturity (YTM) of a bond that is currently selling for $1,150 in the market place? The annual bond has 20 years remaining until maturity and pays a 14% coupon. (Assume annual interest payments and discounting.)If a bond can be purchased for $60 and has a maturity value at the end of 10 years of $500, what is the annual rate of return on the bond?What is the yield to maturity (expressed as APR with semi-annual compounding) for a three-year bond with a coupon rate of 10%, and coupons are paid semiannually? The face value of the bond is $1000, and the current trading price is $900.