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A 30,000, 6% bond with coupons payable quarterly is redeemable at par at the end of 8 years. The market price is 115%. Find the yield rate.
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- A bond paying a coupon of 7% is redeemable in five years at nominal value ($100) and is currently trading at $106.62. Estimate its yield (required rate of return).Find the value of a bond maturing in 11 years, with a $1,000 par value and a coupon interest rate of 11% (5.5% paid semiannually) if the required return on similar-risk bonds is 15% annual interest (7.5% paid semiannually). The present value of the bond is ?A bond has 10 years until maturity, a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000.) What will be the rate of return on the bond?
- Suppose the redemption value of a 5-year bond is $105. It pays semiannual coupons of $3 each. The annual yield rate is 8% convertible semiannually. Calculate the interest earned on this bond for the first half year. Round the answer to the nearest tenth dollar.Suppose that a 20-year 7% bond selling for $816 and held to maturity has reinvestment rate of 6%. Coupon is paid twice a year. Par value is $1,000. What is the annual total return?Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $896.81 today (note that the yield is 9 percent). Find the holding period return if the interest rate rises to 10 percent after six months. Make sure to annualize the rate.
- Calculate the Macaulay convexity of a ten-year 6% $1,000 bond having annual coupons and a redemption of $1,100 if the yield to maturity is 7%. (Round your answer to three decimal places.)Suppose that a 5-year 6% bond is purchased between the issuance date and the first coupon date. The days between the settlement date and the next coupon period is 60. There are 90 days in the coupon period given that the coupons are paid quarterly. Suppose the discount rate is 4%. What is the dirty price, clean price, and accrued interest?Compute the current price of a bond which matures in 40 years and has a required rate of return of 10 percent, a semi-annual coupon rate of 6 percent. Assume the bond's par is $1,000.
- A five-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $1075, calculate the current yield assuming annual interest payment.Find the Yield to Maturity (YTM) of a bond with a $2,500 par value, a remaining life of 10 years, and a coupon rate of 6% per year every six months. The bond is currently selling for $2,000Find the value of a bond maturing in 10 years, with a $1,000 par value and a coupon interest rate of 9% (4.5% paid semiannually) if the required return on similar-risk bonds is 15% annual interest (7.5% paid semiannually).