Bonds issued by Sizzle Cleaners were priced at $1,096.00 six months ago. The bonds pay semi-annual coupons, have a coupon rate of 7.37%, just made payment, and have a face value of $1,000.00. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of 8.21 % , then- ield of the bonds today? O 6.41% (plus or minus 2 bps) O 3.21% (plus or minus 2 bps) O 6.72% (plus or minus 2 bps) O 3.36% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer

Bonds issued by Sizzle Cleaners were priced at $1,096.00 six months ago. The bonds pay semi-annual coupons, have a coupon rate of 7.37%, just made payment, and have a face value of $1,000.00. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of 8.21 % , then- ield of the bonds today? O 6.41% (plus or minus 2 bps) O 3.21% (plus or minus 2 bps) O 6.72% (plus or minus 2 bps) O 3.36% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Skolits corp. issued 10 year bonds 2 years ago at a coupon rate of 7.8% The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM ?
Find the total proceeds (in $) from the sale of 20 bonds with a coupon rate of 6.25 and a current price of 96.975. (Round your answer to the nearest cent.) The commission charge is $4.00 per bond. The date of the transaction is 145 days since the last interest payment. $
ABC Corp. issued 8-year bonds a year ago. The bonds make semiannual payments. The YTM (yield to maturity) on the bonds when issued at par was 8%. ABC issued 12,561 bonds and will face a total repayment of $26,126,880 when the bonds mature. If the YTM on these bonds is 6.1%, what is the current bond price?
Smithson Co.'s Class A bonds have 10 years to go until maturity. They have a $1,000 face value and carry coupon rates of 8%. Approximately what do the bonds yield at the following prices? Assume bond coupons are paid semiannually. a. $770. b. $875. c. $1,000.
5. Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price? a) $1,531.43 b) $1,010.00 c) $718.96 d) $1,005.00 e) $1,000.00
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a)What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) 10.7 % (b)What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $
Wildhorse Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.875 percent and a yield to maturity of 6.0 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is incorrect. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ EA
Weismann Co. issued 18-year bonds a year ago at a coupon rate of 8 percent. The bonds make semiannual payments and have a par value of $ 1,000. If the YTM on these bonds is 11 percent, what is the current bond price?
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Cold Boxes Ltd. issued one hundred $1,000 face value bonds. This bond's current market value of $541.20 will give a YTM of 12%. Interest payments are made every six months. The bonds mature in 10 years. What is the coupon rate of these bonds? 7% 5% 6% 4%
Tom Cruise Lines Incorporated issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return Inflation premium Risk premium Total return 3% 6 5 14% Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 25 years remaining until maturity. Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. New price of the bond
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