A European company issues a bond with a par value of $1,000, 13 years to maturity, and a coupon rate of 6 percent paid annually. If the yield to maturity is 11 percent, what is the current price of the bond? Group of answer choices $640.46 $622.56 $658.44 $662.51
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A European company issues a bond with a par value of $1,000, 13 years to maturity, and a coupon rate of 6 percent paid annually. If the yield to maturity is 11 percent, what is the current price of the bond? |
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- Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?You purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par. 1. What is the yield to maturity on the bond? 2. What is the duration of the bond? 3. If you sold the bond at the end of 1 year what price would you receive for it if its yield to maturity increased to 10 percent? 4. What cash flow yield would you earn on the bond if sold it at the end of 10 years at a yield to maturity of 10 percent? 5. What realized compound yield (i.e. RCY) would your earn on the bond over 10 years if you were able to reinvest the coupons at 8 percent per year? Assume the bond can be sold at the end of 10 years at a yield to maturity of 8 percent?What is the approximate price of a bond that matures in two years (T= 2), with a face value of $1000 (F= $1000), and an annual coupon payment of $50 (C = $50), if the interest rate is 6 percent? $1056.67 $1100.00 $876.33 $981.67
- CASE2: A 10-year 10 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years at a call price of $1,160. The bond sells for $1,200. (Assume that the bond has just been issued.) What is the bond's yield to maturity? What is the bond's current yield? What is the bond's capital gain or loss yield? What is the bond's yield to call? How would the price of the bond be affected by changing interest rates? (Hint: Conduct a sensitivity analysis of price to changes in the yield to maturity, which is also the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. That is an oversimplification but assume it anyway for purposes of this problem.)Question1:Moore Company is about to issue a bond with semiannual coupon payments, a coupon rate of8%, and a par value of $1,000. The yield to maturity for this bond is 10%.a. What is the bond price if it matures in five or twentyyears? b. What do you notice about the bond price in relationship to the bond’smaturity? Question2:J&J Exporters paid a $1.80 per share annual dividend last month. The company is planning onpaying $2.00, $2.50, $2.75, and $3.00 a share over the next four years, respectively. After thatthe dividend will be constant at $3.20 per share per year. What is the market price of this stock ifthe market rate of return is 13 percent?What is the coupon rate of an eight-year, $10,000 bond with semiannual coupons and a price of $9006, if it has a yield to maturity of 5.6%? a. 4.89% b. 5.87% c. 3.91% d. 4.04%
- S A 19-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.00% (2.500% of face value every six months). The reported yield to maturity is 4.8% (a six-month discount rate of 4.8÷2=2.4%). a. What is the present value of the bond? b-1. If the yield to maturity changes to 1%, what will be the present value? b-2. If the yield to maturity changes to 8%, what will be the present value? b-3. If the yield to maturity changes to 15%, what will be the present value? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Present value b-1. Present value b-2. Present value b-3. Present value $ $ 25.00 361.64A bond with a nominal of EUR 400 000 000 and a maturity of 2 years has acoupon of 4.24%. The price of the bond is 96.5%. What is the coupon expressedin money (euro) in the second year? Calculate the yield of the bond (or writedown the equation with all number filled in). Can you use this yield to calculatethe current value (PV) of the coupon in year 2? Explain your answer.do not solve in excel. solve using YTM and spot rates Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A 30-year Canada bond is issued with par value of $1,000, paying interest of $60 per year. If market yields increase shortly after the bond is issued, what happens to the following bond's a. Coupon rate b. Price c. Yield to maturity Options: will increase will decrease will not chnage
- You purchase a zero coupon bond with 12 years to maturity and a yield to maturity of 4.93 percent. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding. a.$27.12 b.$26.89 c.$27.82 d.$24.34 e.$26.71A two-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000. Required: a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity % Interest Rate Realized YTM 8.5% % 10.5% % 12.5% % 4 21 b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.5%, (b) 10.5%, (c) 12.5% ? (Do not round intermediate calculations. Round your answers to 2 decimal places.)A bond with 12 years to maturity and a semiannual coupon rate of 7.64 percent has a current yield of 7.21 percent. The bond's par value is $1,000. What is the bond's price? Group of answer choices $1,059.64 $529.82 $1,034.15 $1,056.02