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What is the effective annual yield of a bond with a maturity of 40 years, price of $934.33 and coupon rate of 8.25% ?
9.4%
8.8%
8.6%
9.3%
9.0%
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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?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?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?What is the coupon rate of a eight-year, $10,000 bond with semiannual coupons and a price of $9,649.09, if it has a yield to maturity of 6.2%? A.6.764% B.4.51% C.7.892% D. 5.637%
- 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%?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 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%
- What is the yield-to-maturity of an Acme bond selling for $1,107.50 with 5 years to maturity, a 12 1/2% coupon, and semiannual compounding? a. 10.20% b. 11.29% c. 9.74% d. 10.36%The following data are available for a bond Face value { 1,000 Coupon Rate 16% Years to Maturity 6. Redemption value { 1,000 Yield to maturity 17% What is the current market price, duration and volatility of this bond? Calculate the expected market price, if increase in required yield is by 75 basis points.What is the approximate yield to maturity (YTM) of a bond that is currently selling for $1,150 in the market place? The annual bond has 20 years remaining until maturity and pays a 14% coupon. (Assume annual interest payments and discounting.) Select one: a. 14% b. 6% c. 7% d. 12%
