Preston Corporation has a bond outstanding with an annual interest payment of $80, a market price of $1,270, and a maturity date in 9 years. Assume the par value of the bond is $1,000. Find the following: Coupon rate Current rate Approximate yield to maturity Exact yeild to maturity

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 payme 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? After the first coupon payment, the price of the bond will be $ (Round to the nearest cent.) KITS

Microhard has issued a bond with the following characteristics:   Par: $1,000 Time to maturity:  21 years Coupon rate:  9 percent Semiannual payments   Calculate the price of this bond if the YTM is 6%, 9%, 12%

Bonds of Zello Corporation with a par value of $1,000 sell for $960, mature in five years, and have a 7% annual coupon rate paid semiannually. Compute the current yield and YTM. Hint: In what situation a bond can have current yield greater than YTM?

A 7% annual coupon bond has a maturity of three years and a yield to maturity on an annual basis of 8%. For the next two years, interest rates stay at 8% and thereafter they change to 7%. Which of the following is closest to the amount of reinvestment income on the bond to its final maturity if the par value of the holding is $1,000. A. $15.04B. $15.79C. $16.55

Volbeat Corporation has bonds on the market with 12.5 years to maturity, a YTM of 8 percent, and a current price of $980. The bond makes semiannual payments. What is the coupon rate?

A 4-year bond, with a face value of $1000, and a coupon rate of 5% (coupon is paid semi-annually), has current yield of 4.76%. Is this bond sold at a discount, or at a premium? Determine the yield to maturity of this bond.

3) The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of $33.50 on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is percent, the current yield is s. Show all work and explain. percent, and the yield to maturity is percer

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 7.1% (annual payments). The yield to maturity on this bond when it was issued was 5.8%. 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.)

A firm has liabilities of $98 in one year, $100 in two years, and $107 in three years. The firm exactly matches its liabilities by purchasing the following zero or annual coupon bonds redeemable at par:   Bond Maturity Par Value Coupon Rate Effective Yield   A 1 year 100 5% 3%   B 2 years 100 0% 4%   C 3 years 100 4% 5%   Find the number of units of Bond A that must be purchased to match the liabilities exactly.   (A) 0.894   (B) 0.897   (C) 0.913   (D) 0.933   (E) 0.959