A bond has a coupon rate of 5.2%, and 6.5 years until maturity. If the YTM is 6.2%, what is the price of this bond?TIP: Write the price as a percentage of the bond's par value.All bonds in this class make two coupon payments per year, and have a face value of $1,000.You don't need to write in the "%" sign.

Bond Price: It is the discounted value of all the coupon payments and the par value to be received.…

Answered: A bond has a coupon rate of 5.2%, and…

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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Similar questions

Suppose the real risk-free rate of interest is 2%. Inflation is expected to be 2% for 2 years and then 3% thereafter. The maturity risk premium is 0.2% (t). where t is the number of years until maturity. The default risk premium is 2%. The liquidity premium is 1%. What is the nominal interest rate on a 4 year bond? 9.1% 7.8% 7.1%
A bond has an annual coupon rate of 4.4%, a face value of $1,000, a price of $1,147.26, and matures in 10 years. What is the bond's YTM?
A bond offers a $50 coupon, has a face value of $1,000, and 4 years to maturity. If the interest rate is 5.0%, what is the value of this bond?
Consider a 26-year bond with 6 percent annual coupon payments. The market rate (YTM) is 8.6 percent for this bond. The current yield of the bond is__________ percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69. Your Answer: Answer Chund
What is the price of a bond with a coupon rate of 4% making semi-annual payments with a face value of $1,000 that matures in 10 years when a. the YTM on the bond is 8.6%? B. the Y IM Is 6.6%? C. the YTM is 5.0%? d. What is the relationship between YTM and price?
A bond offers a coupon rate of 4%, paid annually, and has a maturity of 6 years. The current market yield is 13%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?
Consider a coupon bond that has a par value of $1,000 and a coupon rate of 8%. The bond is currently selling for $1,008.98 and has 2 years to maturity. What is the bond's yield to maturity (YTM)? The yield to maturity is
Consider a bond with one year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid semi-annually), and an interest rate (either required rate of return or yield to maturity) of 20 percent. What is the duration of the bond?
If the current yield of a bond goes down from 6.1% to 4.5%, by what percent does the market price increase?
Consider a 5 year non-call 3 year bond that is callable in 3 year and 4 year at prices of 101 and 100. It pays an annual coupon of 4% and is priced at 101. What is the yield-to-worst for this bond?
A bond that matures in 7.5 years and pays semi-annual payments of 20.1 is priced at 98.70. What is the coupon rate if the face value is, as always, 1,000? ( well explain all point of question with proper answer).
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