The price of a bond is $970 with a face value of $1000 which is the face value of many bonds. Assume that the annual coupons rate is 12%, and that there are 10 years remaining until maturity. What is YTM?

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
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1. The price of a bond is $970 with a face value of $1000 which is the face value of
many bonds. Assume that the annual coupons rate is 12%, and that there are 10 years
remaining until maturity. What is YTM?
 
1. Find the price of a semiannual coupon bond given that the coupon rate = 9.5%,
the face value = $1000, the required return = 17%, and there are 13 years remaining
until maturity.
 
1. Find the yield to call on a semiannual coupon bond with a face value of $1000, a
12% coupon rate, 15 years remaining until maturity given that the bond price is $1175
and it can be called 9 years from now at a call price of $1050.

1.  XYZ Corporation arranged a repurchase agreement in which it purchased
securities for $4.9 million and will sell the securities back for $5.5 million in 40 days.
What is the yield to XYZ Corporation?

1. You paid $98,000 for a $100,000 T-bill maturing in 100 days. If you hold it until
maturity, what is the T-bill yield? What is the T-bill discount?

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