Intel recently issued semi-annual, 4.8% coupon bonds. The bond will mature in 3 years. The current yield-to- maturity for bonds like this is 2.9%. Assuming the par value is $1,000, what is the price of this bond?
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Intel recently issued semi-annual, 4.8% coupon bonds. The bond will mature in 3 years. The current yield-to- maturity for bonds like this is 2.9%. Assuming the par value is $1,000, what is the price of this bond?
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?Graystone bonds have a maturity value of $1,000. The bonds carry a coupon rate of 12%. Interest is paid semiannually. The bonds will mature in 9 years. If the current market price is $976.50, What is the yield to maturity on the bond? b. What is the current yield on the bond? а.Intel recently issued semi-annual, 5.9% coupon bonds. The bond will mature in 6 years. The current yield-to- maturity for bonds like this is 2.6%. Assuming the par value is $1,000, what is the price of this bond?
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- A bond has 10 years until maturity, a coupon rate of 8.4%, and sells for $1,160. Interest is paid annually. (Assume a face value of $1,000.) If the bond has a yield to maturity of 9.6% 1 year from now, what will its price be at that time? Note: Do not round intermediate calculations. Round your answer to nearest whole number. What will be the rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. If the inflation rate during the year is 3%, what is the real rateSuppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of 1000, and a coupon rate of 7.8% (annual payments). The yield to maturity on this bond when it was issued was 6.2%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? After the first coupon payment, the price of the bond will be $_____ (Round to the nearest cent.)Suppose that Ally Financial Inc. issued bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 10% (annual payments). The yield to maturity on this bond when it was issued was 9%. a. What was the price of this bond when it was issued? b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? C a. What was the price of this bond when it was issued? The price of this bond when it was issued was $ (Round to the nearest cent.) b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? The price before the first payment is $. (Round to the nearest cent.) c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after The price after the first…