The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4,775.32, then the YTM for this bond is closest to A. 9.1% B. 10.9% OC. 7.2% OD. 12.7%.

The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4,775.32, then the YTM for this bond is closest to A. 9.1% B. 10.9% OC. 7.2% OD. 12.7%.

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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The bonds issued by Party Citeh bear a coupon of 8 percent, payable semiannually. The bond matures in 19 years and has a $1,000 face value. Currently, the bond sells at $981. The yield to maturity (YTM) is ________%.
A bond with a face value of $1,000 was issued at par (sold for its face value) 5 years ago when market interest rates were 3.6% p.a. (compounded annually). It now has exactly 3 years remaining until it matures. If it pays coupon interest annually, and current market rates are 2.4% p.a. (B.E.Y. convention – all maturities), calculate the duration of the bond.
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 9.5% and that the coupon payments are to be made semannually.Assuming the appropriate YTM on the Sisyphean bond is 7.4%, then this bond will trede at A a premium. B. par c. a discount. D. none of the above
Valdez Corporation has bonds on the market with 11.5 years to maturity, a YTM of 7.2 percent, a par value of $1,000, and a current price of $1,054. The bonds make semiannual payments. What must the coupon rate be on these bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Coupon rate %
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is 5%and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.3%, then the price of this bond will be: The price of the bond is: $ (round to two decimal places)
There is an ongoing debate between US and China regarding weather the Chinese Yuan's value should be revalued upward. The cost of labor in china is substantially lower than that in the U.S. Would the U.S. balance of trade deficit in China be eliminated if the Yuan was revalued upward by 20%? by 40%? by 80%?
Ordinary bonds issued by PIMCO have a current quoted price of $830.50. The PIMCO bond has a 5.7% annual coupon rate. The YTM = 8.15% and the PIMCO bonds pays coupon twice per year. If the next coupon will be disbursed in exactly 6 months, the PIMCO bond will mature in: a. 5.19 years b. 29.14 years c. 19.96 years d. 20.77 years e. 10.39 years
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 19-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $925, and the market's required yield to maturity on a comparable-risk bond is 14 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond?
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 16-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $855, and the market's required yield to maturity on a comparable-risk bond is 15 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond? C a. What is your yield to maturity on the Waco bonds given the current market price of the bonds? % (Round to two decimal places.)
(Bond valuation relationships) A bond of Visador Corporation pays $70 in annual interest, with a $1,000 par value. The bonds mature in 18 years. The market's required yield to maturity on a comparable-risk bond is 8.5 percent. a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 12 percent or (ii) decreases to 4 percent? c. Interpret your finding in parts a and b. Question content area bottom Part 1 a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 8.5 percent? $enter your response here (Round to the nearest cent.)
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9.7% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $1,010, then the YTM for this bond is closest to: A. 11.4% B. 7.6% C. 13.3% D. 9.5%
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 12-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $925, and the market's required yield to maturity on a comparable-risk bond is 11 percent. Compute the bond's yield to maturity. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. Should you purchase the bond?

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