What is the effective annual yield of a bond with a maturity of 15 years, price of $606.19 and coupon rate of 6.00%? 11.7% O 11.5% O 11.9% 12.1% 12.3% Next ▸
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- 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?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?Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has a face value of 1,000 and an 8% annual coupon. The bond has a current yield of 8.21%. What is the bonds yield to maturity?
- 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?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?What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 7%? Interest is paid annually. FV= Par Value = $1,000 9.04% O 8% O 7.9% O 8.5%
- What is the effective annual yield of a bond with a maturity of 25 years, price of $1,401.42 and coupon rate of 9.25%? 6.0% 6.2% 5.8% 6.6% O 6.4%Suppose a 10-year, $1,000 bond with an 8.6% coupon rate and semi-annual coupons is trading for a price of $1,035.22. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.3% APR, what will the bond's price be? **** a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)What is the Yield to Maturity (YTM)for a $1,000 par value bond selling on the market priced at $1,120 that matures in 6 years and has the annual coupons rate at 12%? Select one: O a. 8.5 % O b. 9.4 % O c. 13.2 % O d. 12.%
- What is the Yield to Maturity (YTM )for a $1,000 par value bond selling on the market priced at $1,120 that matures in 6 years and has the annual coupons rate at 12%? Select one: О а. 13.2 % O b. 8.5 % O c. 12.% O d. 9.4 % 3What is the duration of the following bond:$1,000par value,6%annual coupon, 4 years to maturity, and yield to maturity of6.5%? You will need your answer for the next question. In the prior question, what is the present value of the bond?Consider a bond that has a current value of $1,081.11, a face value of $1,000.00, a coupon rate of 10% and five years remaining to maturity.a. What is the bond’s yield-to-maturity today?b. If the bond’s yield does not change, what is its value one year from today?
