ABC Corporation issued a 10-year 5.85% coupon bond on February 15, 2018. Today is February 15, 2020 and the bond is trading at $1,025.50 (face value $1,000). What is the yield to maturity of this bond?
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- You purchased a bond on January 1, 2018 which matures 7 years later on December 31st. The bond has a par value of $1,000, a stated coupon rate of 6.0% and pays interest semi-annually. On January 1, 2020, the bond sells for $928.50. What is its yield to maturity?You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Yield to maturity Coupon 7.00 7.28 ?? % Maturity January 15, 2041 January 15, 2035 January 15, 2037 Last Price Last Yield 94.375 ?? ?? 6.34 94.895 7.16 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Estimated $ Volume (000s) 57,378 48, 957 43,818A treasury bond that settles on August 10, 2019, matures on January 15, 2025. The coupon rate is 5.2 percent and the quoted price is 110 11/32. What is the bond's yield to maturity?
- Company H issues a $20,000,000 bond on January 1, 2020 with a coupon rate of 9%. The present value of the bond is $20,811,010 and the market rate of interest was 8%. The bond has a 5-year life and will make semiannual interest payments and will use the straight line amortization method. A) Is the bond issued at a face value, a discount, or premium? B) What is the amount of the semi-annual interest payments? C) What is the amount that will be recorded to interest expense each time an interest payment is made? D) What is the carrying value of the bond on December 31, 2021?You find the following corporate bond quotes To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 6.700 7.250 22 Coupon rate Maturity January 15, 2044 January 15, 2038 January 15, 2040 Last Price Last Yield 94.339 22 94.865 22 6.28 7.10 Estimated s Volume (000s) 57,375 48,954 43,815 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.A bond is issued on June 3, 2020. Maturity date is June 3, 2023. First semi-annual coupon payment is on December 3, 2020. The interest rate (per annum) is 0.4%. The face value is $1,000,000 (in thousands). The price of the bond is 998.60 (per $1000). 1) Determine the amount of each coupon payment per $1,000 of face value and the total number of coupon payments. 2) Calculate the yield to maturity. 3) Calculate the new price per $1,000 of face value if the yield to maturity increased by one percentage point (e.g., from 1.5% to 2.5%) immediately after issuance. Also calculate the percentage price change.
- Determine the Purchase Price of a Bond that is purchased on the Coupon Date. A $500 bond matures on March 1, 2026, interest is 6.7% payable semi-annually. Determine the purchase price of the bond on September 1, 2020, to yield 8.7% compounded semi-annually. Will this bond sell at a premium or at a discount? discount a.) Determine the value of the coupon. b.) Determine the number of coupons left on the bond. 11 c.) Determine the Present Value of the Bond. d.) Determine the Present Value of the Coupons. e.) What is the purchase price of the Bond on September 1, 2020? >Company I issues a $40,000,000 bond on January 1, 2020 with a coupon rate of 7%. The present value of the bond is $37,282,062 and the market rate of interest was 8%. The bond has a 10-year life and will make semiannual interest payments and will use the straight line amortization method. A) Is the bond issued at a face value, a discount, or premium? B) What is the amount of the semi-annual interest payments? C) What is the amount that will be recorded to interest expense each time an interest payment is made? D) What is the carrying value of the bond on December 31, 2021?On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 8.2s45" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 7.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) Group of answer choices $1,029.11 $1,034.52 $1,033.68 $1,030.95 $1,032.06
- You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 6.800 7.260 ?? a. Price b. Current yield Maturity January 15, 2043 January 15, 2037 January 15, 2039 Last Price Last Yield 94.351 ?? 94.875 ?? 6.30 7.12 Estimated $ Volume (000s) 57,376 48,955 43,816 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.) $1.152.74 O $1,15411 $1.155.30 $1.156.25 O$1,158.85You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon 5.800 7.160 ?? a. Price b. Current yield Maturity January 15, 2038 January 15, 2032 January 15, 2034 X Answer is complete but not entirely correct. $ 2,249.62 X 6.71 X % Last Price Last Yield 94.231 ?? 94.775 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. ?? 6.10 6.92 Estimated $ Volume (000s) 57,366 48,945 43,806