Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is the coupon rate for a bond with a face value of $1,000, 24 years to maturity, a current price of $993, and a yield to maturity (YTM) of 9.09%?
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- What is the coupon rate of a ten-year, $10,000 bond with semiannual coupons and a price of $9,558.57, if it has a yield to maturity of 6.6%? OA. 7.188% OB. 5.99% OC. 4.792% OD. 8.386%arrow_forwardWhat is the duration of a 7-year zero-coupon bond with $1,000 par value and 3% YTM?arrow_forwardYou have a 10-year bond, with $1,000 face value, 8.00% coupon rate, semiannual coupon payments, and yield to maturity of 7.50%. What is its price? O $663.58 O $1,034.74 $103.47 O $1,349.04arrow_forward
- What is the yield to maturity of a nine-year $5000 bond with a 4.7% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,754.81arrow_forwardCalculate the current yield on a bond with the following characteristics: par value of $1000, remaining life of 17 years, yield to maturity of 6.3%, coupon rate of 5.03%, semi annually coupon paymentsarrow_forwardWhat is the formula used to calculate the yield to maturity on a 20-year coupon bond with a current yield of 12% and $1.000 face value that sells on $2,500.arrow_forward
- What is a fair price of a 26-year semi-annual coupon bond, with a coupon rate of 6.88%, a face value of $1000, and a yield-to-maturity of 7.7%? (Answer to nearest $0.01)arrow_forwardSunnyfax Publishing pays out all its earnings and has a share price of $37.00. In order to expand, Sunnyfax Publishing decides to cut its dividend from $3.00 to $2.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 14%. If the reinvestment does not affect Sunnyfax's equity cost of capital, what is the expected share price as a consequence of this decision? O$45.87 $40.14 $68.81 $57.34arrow_forwardSuppose that you purchased a Baa rated $1000 annual coupon bond with a 3.8% coupon rate and a 10-year maturity at 2% above par value. What would the current yield (in %) be at the time of purchase (4 digits)?arrow_forward
- What is the coupon rate if a two-year $10,000 bond with semiannual coupons and a price $9636.67 if it has a yield to maturity of 6.9%? a. 5.909% b. 6.894% c. 4.924% d. 3.939%arrow_forwardWhat is the price of a $1,000 par value, 9 year, annual coupon bond with a 9.79% coupon rate and a yield to maturity of 5.47 % ?arrow_forward
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