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 yield to maturity of a 10 year $1000 bind with a 5.5% semi-annual coupon that is currently trading for $1060?
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- 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_forwardA 10 year bond with 5% annual coupon and $1,000 par value sells for $1,200. What is the yield-to-maturity?arrow_forwardGive typing answer with explanation and conclusion What would the YTC on an 8.5% annual coupon bond with maturity of 12 years and a face value of $1,000 be if it were selling for $987, carried a call penalty of $85, and you expected it to be called in three years.arrow_forward
- What is the present value of a security that will pay $17,000 in 20 years if securities of equal risk pay 8% annually? Do not round intermediate calculations. Round your answer to the nearest cent.arrow_forwardA 10-year, 1000 par value bond with a 7% annual coupon is trading to yield 8%. What is the current yield?arrow_forwardUse the following information to answer. Coupon Payments are annual unless otherwise indicated! Years Face Coupon Market Security Rating Maturity Value Rate Price Treasury 1 $ 1,000 0.00% $ 965.00 Treasury 3 $ 1,000 1.90% $ 939.06 Treasury 5 $ 1,000 4.30% $ 932.42 Treasury 10 $ 1,000 6.80% $ 1,007.12 Treasury 15 $ 1,000 6.60% $ 908.25 Corp A A 5 $ 1,000 8.10% $ 990.00 Corp B BB 10 $ 1,000 7.90% $ 859.88 Corp C AA 15 $ 1,000 7.00% $ 660.00 What is the default risk premium for a BB debt security (round to two places)arrow_forward
- What is the fair price for a bond with a 5.5% annual coupon and 8 years until maturity if the yield is 9%?arrow_forwardWhat is the answer ?arrow_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 most we should pay for a bond with a par value of $1000, coupon rate of 4.2% paid annually, and a remaining life of 13 years? The yield to maturity is 4.2%. Assume annual discounting. (Round your answer to the nearest penny.)arrow_forwardWhat is the yield-to-maturity of a bond with a coupon rate of 9.0%, par value of $2000, 7 years until maturity, and a value of $987.33 if coupons are paid annually with the next one due in one year?arrow_forwardYou are purchasing a 10-year, zero–coupon bond. The yield to maturity is 8.69 percent and the face value is $1,000. What is the current market price? Assume semiannual compoundingarrow_forward
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