Suppose a seven-year, $1,000 bond with a 7.9% coupon rate and semiannual coupons is trading with a yield to maturity of 6.71%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.28% (APR with semiannual compounding), what price will the bond trade for?
Q: a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best…
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A: Compound = Semiannually = 2Time = t = 10 * 2 = 20Face Value = fv = $1000Coupon Rate = c = 8.7 / 2 =…
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A: Par value = $1000 Coupon rate = 8.5% Semi annual coupon amount = 1000*0.085/2 = $42.50 Years to…
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A: Here, Par value of bond (FV) is $ 1000 Coupon rate is 8.8% Semi annual coupon amount (PMT)is:…
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Q: Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for…
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Q: Suppose a 10-year, $1,000 bond with a coupon rate of 8.7% and semiannual coupons is trading for…
A: Compound = Semiannually = 2Time = nper = 10 * 2 = 20Face Value = fv = $1000Coupon Rate = 8.7 / 2 =…
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A: Here,
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- Suppose a seven-year, $1,000 bond with a coupon rate of 7.8% and semiannual coupons is trading with a yield to maturity of 6.34%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.34% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) OA. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. O B. OC. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. O D. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium.Suppose a seven-year, $1,000 bond with a coupon rate of 8.1% and semiannual coupons is trading with a yield to maturity of 6.27%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.28% (APR with semiannual compounding), what price will the bond trade for?Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,034.23.
- Suppose a seven-year, $1,000 bond with a 7.7% coupon rate and semiannual coupons is trading with a yield to maturity of 6.66%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.22% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) O A. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. O B. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. C. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. OD. Because the yield to maturity is greater than the coupon rate, the bond is trading at par.Suppose a seven-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading with a yield to maturity of 6.38%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.43% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. B. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. b. If the yield to maturity of the bond rises to 7.43% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $…Suppose a seven-year, $1,000 bond with a coupon rate of 8.2% and semiannual coupons is trading with a yield to maturity of 6.49%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.21% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. b. If the yield to maturity of the bond rises to 7.21% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $…
- Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,034.54. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.2% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)← Suppose a seven-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading with a yield to maturity of 6.65%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.05% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) O A. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. OC. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount.Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.24. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.2% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is 8.39 %. (Round to two decimal places.) b. If the bond's yield to maturity changes to 9.2% APR, what will be the bond's price? The new price for the bond is $ (Round to the nearest cent.)
- Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading with a yield to maturity of 6.71%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.05% (APR with semiannual compounding), what price will the bond trade for? B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. C. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. b. If the yield to maturity of the bond rises to 7.05% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $ (Round to the nearest cent.)← Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,034.51. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)Suppose a ten-year, $1,000 bond with a 8.9% coupon rate and semiannual coupons is trading for$1,035.32. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price? The bond's yield to maturity is ______%. (Round to two decimal places.)