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A $3600, 6.9% bond with semi-annual coupons redeemable at par in 5 years was purchased at 100.1.
What is the approximate yield rate?
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- 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?A one-year premium bond with a face value of $10,000 has been purchased for $11,150. What is the yield to maturity? What is the yield on a discount basis?. A 7,000, 5% bond with annual coupons, redeemable at 108 at the end of 5 years is pricedto yield 4%, m=1. Construct a table showing the amortization of premium. (Amortization ofPremium)
- A $1000 par-value 10-year bond with semi-annual coupons is purchased to yield j2 = 8%. The absolute value of the write-up (book value adjustment) for the first year is $5. What is the purchase price of the bond?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.The nominal rate of return is ______% earned by an investor in a bond that was purchased for $906, has an annual coupon of 4%, and was sold at the end of the year for $1045? Assume the face value of the bond is $1,000.
- What is the market price of a redeemable (at par) bond, with a maturity date in 4 years’ time, and a coupon rate of 10%, if current cost of debt, Kd (return required or yield) is 8%?A bond: pay $75 each year in interest, and a $1,000 payment at maturity. The $1,000 is called? A) couponB) face valueC) discountD) yieldA 7,000, 5% bond with annual coupons, redeemable at 108 at the end of 5 years is priced to yield 4%, m=1. Construct a table showing the amortization of premium. (Amortization of Premium)
- A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What was the purchase price of the bond, when the yield rate was 4.00% compounded semi-annually?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).A $7000, 6.11% bond with semi-annual coupons redeemable at par was purchased 5 years before maturity, at 97.5. What was the approximate yield rate? State only your final answer to four decimal places.
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