Calculate the price of a 5-year semi-annual coupon bond with an annual coupon rate of 1.875% and face value 100. Assume that the bond’s maturity is 1stMarch 2029 and that it has just made its most recent coupon payment. What is its YTM? On the same date a bond with maturity 28th February 2029 with coupon rate 1.875% was quoted at 4.179%. Why do you think that the YTMs are different on the two 5-year bonds?

Calculate the price of a 5-year semi-annual coupon bond with an annual coupon rate of 1.875% and face value 100. Assume that the bond’s maturity is 1stMarch 2029 and that it has just made its most recent coupon payment. What is its YTM? On the same date a bond with maturity 28th February 2029 with coupon rate 1.875% was quoted at 4.179%. Why do you think that the YTMs are different on the two 5-year bonds?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

See similar textbooks

Similar questions

Find the YTM of a Treasury bond which you are considering purchasing. The settlement date is Oct. 1, 2023. The bond matures on Dec. 15, 2026 and has a 4.25% coupon rate (the maturity date tells you when the coupon payments are made). The quoted price for the bond is 102:12.
You find the following Treasury Bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semi annual coupons. In the table, find the Treasury bond that matures in May 2034. What is your yield to maturity if you buy this bond?
A Treasury bond that settles on August 10, 2022, matures on May 4, 2028. The coupon rate is 5.8 percent and the quoted price is 109 15/32. What is the bond’s yield to maturity?
You estimate that the required return on the following Silicone bond is 12.4%. If the bond is being evaluated in the current month of 2023 and matures in the current month of the year indicated, based on this information, how much is the bond over- or under-priced? Bond Silicone Coupon (%) Maturity. 8.00 2029 O Under-priced by $182.44 O Over-priced by $148.19 O Under-priced by $148.19 O Over-priced by $34.25) O Under-priced by $34.25 O Over-priced by $182.44 Last Price (% of par) 96.575
A) Find the price of a 5 year bond trading at a yield to maturity of 5.75% and has a coupon of 6% paid semi- annually. Assume you buy the bond on October 25, 2021 and it matures on October 25, 2026. B) Suppose the bond is callable in 3 years at $ 110. Using the price calculated above find the yield to call.
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.302 6.168 Maturity Month/Year May 29 May 32 May 38 Yield to maturity Asked Bid 103.4625 103.5353 104.4965 104.6422 ?? ?? In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. = Change Ask Yield +.3028 6.019 ?? +.4305 +.5418 4.051 %
The following Bond Data is provided on the FINRA website: Suppose Today's date is 07/11/2023 • Bond Maturity Date: 07/11/2031 Today's Bond Price: $81.95 Bond PAR value: $100 Bond Coupon Rate: 1.8% (coupons are paid semiannually). What is the computed yield to maturity of this Bond? Enter your answer in the format: 0.1234 Hint: Gather N, PV, PMT, FV and compute I/Y; Assume there are 365 days in a year.
A bond that matures in13years has a$1,000par value. The annual coupon interest rate is8percent and the market's required yield to maturity on a comparable-risk bond is12percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
Can you solve this problem using excel and its functions.
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid Asked 103.5483 103.4755 104.5095 104.6552 ?? ?? Yield to maturity In the above table, find the Treasury bond that matures in May 2036. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3158 6.219 ?? +.4425 +.5548 4.251 % K
Refer to Figure and look at the Treasury bond maturing in February 2036.a. How much would you have to pay to purchase one of these bonds? b. What is its coupon rate? c. What is the yield to maturity of the bond?
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.424 6.183 Maturity: Month/Year May 32 May 35 May 41 Yield to maturity Asked Bid 103.4664 103.5392 104.5004 104.6461 +.4341 ?? ?? +.5457 Change Ask Yield. 6.079 +.3867 77 4.111 In the above table, find the Treasury bond that matures in May 2035. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. %