A firm’s bonds have a maturity of 16 years with a $1,000 face value, a 12 percent semiannual coupon, are callable in 6 years at $1,070, and currently sell at a price of $1,131.  What is their yield to call (YTC)?   a. 9.12%   b. 10.47%   c. 10.31%   d. 9.93%   e. 12.00%

Q: 2. A $1000, 15-year bond, callable at $1100 after 10 years has a 7% coupon rate and makes semiannual…

A: Yield to maturity can be calculated by following function in excel=RATE (nper, pmt, pv, [fv],…

Q: A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for…

A: Bonds refer to instruments that are issued by a company to raise debt capital from non-traditional…

Q: what will the price be 4 years from now? a $935.27 b. $936.94 с. $938.61 d. $940.43 e. $975.84

A: Bonds can trade at a premium, at par, or at a discount, depending on the market conditions for…

Q: Find the capital gains yield for a 10-year, 9% annual coupon bond that sells for $887, and has a…

A: Coupon Rate: 9% per annumFace Value of the Bond (FV): $1,000Current Market Price (Beginning Price):…

Q: Suppose a 10-year, $1,000 bond with a coupon rate of 8.8% and semiannual coupons is trading for…

A: Yield to maturity(YTM) is the rate of return that the bondholders will get if invest and bond and…

Q: A company's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 14 years to…

A: Computation:

Q: An 12% coupon rate bond is maturing in 1 year has a yield (YTM) of 6%. Assuming a face value of…

A: Macaulay Duration = Σ  [T * (C / (1 + YTM)) + M / (1 + YTM) ^ T]Where:T = Time period (in years)…

Q: A risk-free, zero-coupon bond with a face value of $1,000 is traded at $359.49. If the YTM is 10.0%,…

A: P is the current price of the bond, which is $359.49.F is the face value of the bond, which is…

Q: A 6.95% coupon, 9.0 -year annual bond has a yield to maturity of 3.96%. Assuming the par value is…

A: A bond is an instrument that provides the issuing organization access to debt capital from…

Q: Rolling Company bonds have a coupon rate of 5.20 percent, 20 years to maturity, and a current price…

A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…

Q: A ten-year, zero-coupon bond with a yield to maturity of 6.9% has a face value of $5,000. An…

A: Given:  YTM of zero coupon bond = 6.9%  Face value = $5,000  Years to maturity, n = 10 years    The…

Q: Please show your work. What is the value of a bond with a par value of $1,000, a coupon of $120…

A: Coupon payment (C) = $120 (semi-annually)Face value (F) = $1,000Yield to Maturity (YTM) = 7.02%…

Q: 5% bond with annual coupons, redeemable at 108 at the end of 5 years is priced to yield 4%, m=1.…

A: The amortization of excess premium paid over and above the face value of the Bond is referred to as…

Q: A firm’s bonds have a maturity of 21 years with a $1,000 face value, a 9 percent semiannual coupon,…

A: Face value = $1000Bond maturity = 21 yearsCoupon rate = 9% semi-annualCallable period = 4…

Q: Two bonds, each with a face value of $16000, are redeemable at par in t-years and priced to yield y2…

A: Value of a bond is the price of the bond. It is the present value of future cash flows occurring…

Q: What is the yield to maturity of a eight-year, $5,000 bond with a 5.1% coupon rate and semiannual…

A: YTM is expressed as an annual percentage rate (APR) and is calculated using a complex formula that…

Q: What is the current price of a 9%, GHS1,000 annual coupon bond that has eighteen years to maturity…

A: Given data: YTM = 9.631% Years to maturity = 18 years Coupon rate = 9% Par value = GHS 1000

Q: A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and…

A: Solution:Current yield refers to the percentage of annual coupon payment to the current price of…

Q: A bond sells for 96% of its $1,000. It has a coupon rate of 4% paid annually. It matures in 20…

A: Yield to maturity :                             Yield to maturity is the total return anticipated on…

Q: A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 11% semiannual coupon,…

A: Bonds refer to the financial instrument issued by the government or financial institutions for…

Q: The semi-annual bonds of Delta Company have a coupon rate of 6%, a Yield to Maturity of 8%, a par…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: A bond has nine years to maturity, a $1,000 face value, and a 5.5% coupon rate with annual coupons.…

A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…

Q: new 15-year, 9% annual coupon bonds. The market price = $1,070. What is the yield to maturity on the…

A: Coupon =9% Coupon =90 Period =15 year  Market price =1070 Par value =1000 Market price of bond…

Q: It takes how many years for it to mature?

A: Bonds are financial instruments which provide fixed returns to its holders. Bonds actually have a…

Q: A firm's bonds have a maturity of 20 years with a $1,000 face value, have a 7% annual coupon rate…

A:

Q: Which of the following relationships is most accurate regarding a 20-year corporate bond that sells…

A: Bonds are debt instruments in which interest payments are made each year and par value is paid on…

Q: Bond XYZ has a par value of $1,000, an 8% semiannual coupon rate and 10 years to maturity. Bond XYZ…

A: In this question  we need to compute the Yield to Maturity for a Bond:

Q: 8. Calculate the following on a bond that has a $1,000 Par Value, matures in exactly one (1) year,…

A: STEP 1 The predicted returns an investor expects after holding the bond until maturity are referred…

Q: A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon,…

A: Compound = Semiannually = 2Face Value = $1000Coupon Rate = 11 / 2 = 5.5%Normal Maturity time = 14…

Q: The Nemesis Project's bonds currently sell for $1,075 and have a par value of $1,000. They pay a…

A: Using excel rate function

Q: 7.04  A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual…

A: FORMULA FOR NOMINAL YEILD: YTM=2×C+PAR-PRICENPAR+PRICE2 FORMULA FOR YEILD TO CALL YTC=2×C+PAR-CALL…

Q: A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for…

A: Variables in the question:Par value=$1000Annual coupon rate=9%N=25 yearCurrent market…

Q: Company Z has a bond outstanding with 20 years to maturity, a coupon rate of 9.50% with SEMIANNUAL…

A: Yield to call refers to the financial term used for calculating the return received by the…

Q: You have a 7 - year bond, with $1,000 face value, 5.50% coupon rate, semiannual coupon payments, and…

A: The objective of the question is to calculate the price of a bond given its face value, coupon rate,…

Q: What is the yield to maturity of a 9.4%semiannual coupon bond with a face value of​ $1,000 selling…

A: Time Period =  10 Years × 2= 20 semi annual periods Face Value = 1000 Price of bond = 899.40 Coupon…

Q: A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for…

A: Bonds are debt securities issued by governments, municipalities or companies to raise money. They…

Q: Perry Inc.'s bonds currently sell for $1,310. They have a 4-year maturity, an annual coupon of $77,…

A: Current Yield: The current yield on the bond is calculated as coupon payment divided by the current…

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Consider a 19-year, 3.6% coupon rate, $1,000 face value bond that pays annual coupons. If the bond's…

A: Using excel PV function

Q: A $100, 4.5% bond with semiannual coupons will be redeemed at the end of 15 years. Find the price to…

A: Bonds are debt instruments issued by companies. Bonds have to pay periodic coupons which can be…

Q: A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon,…

A: Calculation of YTM and YTC using Excel function:

Q: A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 11% semiannual coupon,…

A: Now by using excel    THANK YOU (please give to me rating)

Q: A company issues a callable (at par) 20-year, 5% coupon bond with annual coupon payments. The bond…

A: Since , the bond is callable after a year or anytime after first coupon payment , so we will…

Q: A firm’s bonds have a maturity of 26 years with a $1,000 face value, a 9 percent semiannual coupon,…

A: Bond period = 26 yearsFace value = $1000Coupon rate = 9%Callable period = 5 yearsCallable price =…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.