The $1,000 face value 9% coupon bond pays interest semi-annually. The bond will mature in 3-years. Find the Convexity if it sells for $980 $2184 $1794 $19.94 $1784
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The $1,000 face value 9% coupon bond pays interest semi-annually. The bond will mature in 3-years. Find the Convexity if it sells for $980
$2184
$1794
$19.94
$1784
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- Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity. The bonds have a face value of 1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?
- Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?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?The $1,000 face value 9% coupon bond pays interest semi-annually. The bond will maturein 3-years. Find the Convexity if it sells for $980.(A) $17.84(B) $21.84(C) $19.94(D) $17.94
- The $1,000 face value 9% coupon bond pays interest semi annually. The bond will mature in 3 - years. Find the Convexity if it sells for $980A $1000 bond with an 8.2% coupon rate, interest paid semiannually, and maturing in six years is currently yielding 7.6% in the market. What is the current price of the bond? a. $1,027.08 b. $1,131.19 c. $1,028.48 d. $972.00The $1,000 face value 7% coupon bond pays interest semi-annually. The bond will mature in 5-years. Find the Modified duration of the bond if it sells for $1,025.30. (A) 4.54-years (B) 4.18-years (C) 4.40-years (D) 5.00-years
- Suppose a $4,500 bond will pay you $325 at the end of each quarter until the face value of the bond ($4,500) is repaid at maturity. What is the fair market value of the bond if it matures in 6 years and the market rate of return is 6.1% compounded quarterly? $9,620.42 $11,090.01 $10,991.02 $9,719.40How much will the coupon payments be of a 25 year $5,000 bond with a 8% coupon rate and semi annual payments? A. $800 B. $400 C. $200 D. $67Find the duration of a 9.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 9.0%. What is the duration if the yield to maturity is 11.4%? Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places. 9% YTM 11.4% YTM Duration years years
