A bond with a face value of $1,000 pays 4% annual coupon rate. If the bond is priced at $980, what is its current yield? a) 3.92% b) 4.00% c) 4.08% d) 4.16%
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- A $1000 bond with coupons at j2 = 8% is purchased to yield j2 = 7%. The write down in the first period after purchase is $4.01. What is the purchase price of the bond?What is a discount ask yield on a bond? if the bond is priced at 1,000 and 80 days to maturity and has a discount ask yield of 3.4%?A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?
- Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.)A bond with an annual coupon rate of 4.8% sells for $970. What is the bond’s current yield?A bond with face value $1,000 has a current yield of 7.1% and a coupon rate of 9.1%. a. If interest is paid annually, what is the bond’s price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is the bond’s yield to maturity more or less than 9.1%?
- A bond with face value $1,000 has a current yield of 6.9% and a coupon rate of 8.9%. a. If interest is paid annually, what is the bond's price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Bond price b. Is the bond's yield to maturity more or less than 8.9%? More O LessSuppose a 10-year, $1,000 bond with a coupon rate of 8.5% and semiannual coupons is trading for $1,034.27. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)If you have a coupon bond, its face value is $1,000 and the coupon rate is 4%. Complete the following table, then calculate the rate of return for the bond. If you know that it was purchased at the nominal value, comment on the results. due date return at maturity the price 2 0.02 3 0.04 5 0.06 Present Value Annuity value % n value % n 0.961 0.02 2 1.97 0.02 2 0.925 0.04 2 1.89 0.04 2 0.889 0.04 3 2.78 0.04 3 0.906 0.02 5 4.71 0.02 5 0.747 0.06 5 4.21 0.06 5
- A bond that pays interest semiannually has a coupon rate of 5.08 percent and a current yield of 5.37 percent. The par value is $1,000. What is the bond's price?Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual payments.Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.24. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.2% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is 8.39 %. (Round to two decimal places.) b. If the bond's yield to maturity changes to 9.2% APR, what will be the bond's price? The new price for the bond is $ (Round to the nearest cent.)