A 4.59% coupon, 21.0 -year annual bond has a yield to maturity of 6.93% . Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: Price of the bond in one year: Capital gains yield (please answer as a percentage with 2 decimal places): Current Yield ( please answer as a percentage with 2 decimal places):

A 4.59% coupon, 21.0 -year annual bond has a yield to maturity of 6.93% . Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: Price of the bond in one year: Capital gains yield (please answer as a percentage with 2 decimal places): Current Yield ( please answer as a percentage with 2 decimal places):

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A 8.89% annual coupon, 20-year bond has a yield to maturity of 5.32 % . Assuming the par value is $ 1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is 3.92 %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) Price (per $100 face value) 1 $95.51 2 3 $91.10 $86.55 $81.69 $76.45 Print Donday
A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,074.21, and currently sell at a price of $1,136.52. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % What return should investors expect to earn on these bonds? Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC.
The current market price of a given zero-coupon bond is $747.470. The face value of the bond is $1,000.000. The annualized continuously compounded yield on the bond is 8.000%. Then, what is the implied time to maturity (in years) of this bond?
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): Maturity (years) Price (per $100 face value) 1 $96.32 a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is %. (Round to two decimal places.) 2 $91.93 3 $87.36 4 5 $82.57 $77.42
Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in 28 years, has a coupon rate of 8.0% with semi-annual payments. The par value of the bond is $1000, while the current market value equals $1030.61. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)
What is the yield to maturity of a 25-year bond that pays a coupon rate of 6.47 percent per year, has a $1,000 par value, and is currently priced at $1,037? Assume annual coupon payments. Round the answers to two decimal places in percentage form.
Calculate the current yield on the described bond. A $500 Treasury bond with a coupon rate of 3.2% that has a market value of $425 The current yield is %. (Round to two decimal places as needed.)
Rolling Company bonds have a coupon rate of 5,00 percent, 19 years to maturity, and a current price of $1,136. What is the YTM? The current yield? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. YTM Current yield
A 4.4% annual coupon, 24-year bond has a yield to maturity of 4.61%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?
A 5.75 percent coupon bond with 10 years left to maturity is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 5.8 percent. Assuming semiannual interest payments, what is the change in price the bond will experience in dollars? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
The yield to maturity of a $1,000 bond with a 7.3% coupon rate, semiannual coupons, and two yearsto maturity is 8.1% APR, compounded semiannually. What is its price?

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