What is the yield to maturity of a ten-year, $5,000 bond with a 4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,297? O A. 8.23% OB. 7.06% OC. 5.88% OD. 2.94%
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- Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond?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?What is the yield to maturity of a nine-year, $5,000 bond with a 4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,526? OA. 7.48% B. 5.34% OC. 6.41% D. 2.67%
- What is the yield to maturity of a(n) five-year, $5,000 bond with a 4.8% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,744.09? O A. 2.95% OB. 7.08% O C. 8.26% O D. 5.9% CWhat 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 a five-year, $5,000 bond with a 4.4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,704? OA: 5.78% B. 6.93% C. 2.89% OD. 8.09%
- What is the price of a zero coupon bond with a $1,000 face value, 10-year maturity, and annual compounding? The market rate on similar bonds is 8%. a. $ 463.193 b. $ 655.228 c. $934.516 d. $ 1000 IWhat is the yield to maturity of a eight-year, $5,000 bond with a 5.1% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,425.53? A. 8.38% B. 3.49% C. 9.78% D. 6.99%What is the coupon rate of an eight-year, $10,000 bond with semiannual coupons and a price of $9006, if it has a yield to maturity of 5.6%? a. 4.89% b. 5.87% c. 3.91% d. 4.04%
- What is the yield to maturity of a bond that just paid an annual coupon payment of $50, has 10 years remaining until maturity, a $1,000 par value when priced at a $965? (please show work or how to enter into a BA II plus) a. 4.95 b. 2.72 c. 5.46 d. 5.00 e. 10.57What must be the price of a $5,000 bond with a 6.5% coupon rate, semiannual coupons, and five years to maturity if it has a yield to maturity of 9% APR? ..... O A. $6,308 B. $3,604 C. $5,407 D. $4,505What is the price of a coupon bond with a face value of $300 and 7 years to maturity, which makes semi‐annual coupon payments at the rate of 3% p.a., if it is trading at a yield of 6%? A. $246.14 B. $249.17 C. $249.76 D. $246.73