Dynamic Systems has an outstanding bond that has a $ 1,000 par value and a 10 percent coupon rate. Interest is paid semiannually. The bond has 12 years remaining until it matures. Today the going interest rate is 12 percent, and it is expected to remain at this level for many years in the future. Compute the current yield. Do
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- eBook Dynamic Systems has an outstanding bond that has a $1,000 par value and an 8 percent coupon rate. Interest is paid semiannually. The bond has 10 years remaining until it matures. Today the going interest rate is 10 percent, and it is expected to remain at this level for many years in the future. Compute the current yield. Do not round intermediate calculations. Round your answer to two decimal places. _____ % Compute the capital gains yield that the bond will generate this year. Do not round intermediate calculations. Round your answer to two decimal places. _____ %Dynamic Systems has an outstanding bond that has a $1,000 par value and an 11 percent coupon rate. Interest is paid semiannually. The bond has 13 years remaining until it matures. Today the going interest rate is 12 percent, and it is expected to remain at this level for many years in the future. Compute the current yield. Do not round intermediate calculations. Round your answer to two decimal places. _______% Compute the capital gains yield that the bond will generate this year. Do not round intermediate calculations. Round your answer to two decimal places. _______%A bond has 10 years until maturity, a coupon rate of 8.1%, and sells for $1,190. Interest is paid annually. (Assume a face value of $1,000.) a. If the bond has a yield to maturity of 9.9% 1 year from now, what will its price be at that time? Note: Do not round intermediate calculations. Round your answer to nearest whole number. Price b. What will be the rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. Rate of return % c. If the inflation rate during the year is 3%, what is the real rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. Real rate of return %
- The market price of TRUST bond is currently $890. Its par value is equal to $1,000 and it is expected to mature in 4 years. The coupon rate is equal to 4% and the yield to maturity is equal to 9% per year. Interest payments are made quarterly. Based on the aforementioned information, answer the following questions: a. The number of periods, N, is equal to: N = b. The yield to maturity, r, is equal to: (Report it in percent terms) r = % c. The coupon payment is equal to: Coupon payment = $ d. Calculate the value of the bond today. Use two decimal points. VB = $ e. Would you buy the bond today? ONot enough information ONO YesPharaoh, Inc. has four-year bonds outstanding that pay a coupon rate of 7.0 percent and make coupon payments semiannually. If these bonds are currently selling at $918.32. What is the yield to maturity that an investor can expect to earn on these bonds? Assume face value is $1000. (Round to 1 decimal) Solve for yield to maturity What is the effective annual yield?Dynamic Systems has an outstanding bond that has a $1,000 par value and a 7 percent coupon rate. Interest is paid semiannually. The bond has 11 years remaining until it matures. Today the going interest rate is 10 percent, and it is expected to remain at this level for many years in the future. Compute the (a) current yield and (b) capital gains yield that the bond will generate this year.
- For a company, you plan to buy the following bond: Time to maturity, 6 years; coupon rate, 8%; Coupon payment, annual; Market interest rate, 8%; Face value, $1,000. Using Excel, calculate the duration of the bond. Using Excel, calculate the accumulated value of invested payment(or receipt) when you find market interest rate a year later is now 8%, 9%, and 7%, respectively. Using Excel, calculate geometric average rate of return (or realized compound return).What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return of .0702. Instruction: Type your answer in dollars, and round to two decimal places.You are employed by an investment bank to estimate the value of a coupon-paying bond with the following features. It has a face value of $100,000, pays quarterly coupons at a rate of 10% p.a. and the market required yield to maturity is 8% p.a. compounding quarterly. There is one full quarter until the next payment will be received and the bond matures in 4 years. Which of the following is closest to the market value of the bond? Group of answer choices A) $106,789 B) Need more information to answer the question C) $105,288 D) $93,473 E) $94,871
- You buy a bond for $991 that has a coupon rate of 5.90% and a maturity of 10-years. A year later, the bond price is $1,176. (Assume a face value of $1,000 and annual coupon payments.) What is the new yield to maturity on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. What is your rate of return over the year? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.Calculate the value of a $1,000-par-value bond paying quarterly interest at an annual coupon interest rate of 11% and having 14 years until maturity if the required return on similar-risk bonds is currently a 11% annual rate paid quarterly. The present value of the bond is $.. please help and solve stepwise both with excel and manually using formula.