Use the information given in the following table for an bond, what is the coupon rate of the bond?Today is February 20, 2020.Type Issue datePriceCoupon rate Maturity dateYTM Current yield RatingBond August, 2003 $1,035.53August 20, 202410%AAAssume semi-annual interest payments and a par value of the bond of $1,000.The coupon rate of the bond is:12.00%8.00%6.00%10.00%9.00%☐ 11.00%○ 7.00%

Solution : Given, Par value = $1000 Price = $1035.53 YTM = 10% 0r 0.10 Months left…

Answered: Use the information given in the…

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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You are considering buying a 6.5% coupon bond. The bond has a par value of $1,000. The bond was issued in October 2020 with a 20-year term to maturity. The bond makes semiannual coupon payments. The current selling price is $1,432. What is the dollar amount of a coupon payment? (Remember that the bond has semi-annual coupon payments.) $16.25 $32.50 O $65.00 O $130
Find the yield to maturity (YTM) for a 10-year, 5% annual coupon rate, $1,000 par value bond if the bond sells for $918 currently? We assume that interest is paid on this bond annually. 6.12% 6.91% 7.33% 7.86% Using the information from Question 38, calculate the bond’s current yield. 5.00% 5.45% 6.50% 8.21% Using the information from Question 38 and 39, calculate the bond’s capital gain yield. -0.35% 0.35% 0.67% -0.67%
Use the information for the question(s) below. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.0%, then the price at which this bond trades will be closest to: OA. $919. OB. $1000. OC. $1086. OD. $946.
Consider the four bonds having annual payments as shown in the following table Year Bond A Bond B Bond C Bond D Year 1 100 50 0 0 + 1000 Year 2 100 50 0 0 Year 3 100+1000 50+ 1000 0 + 1000 0 (a) If each of the bonds is traded to produce a 15% yield, determine the price of each bond. (b) If Bond C is sold for $900, what is the yield to maturity? (c) What is the yield to maturity if Bond D is sold for $900?
A bond with a face value of 1000 and a redemption value of 1080 has an annual coupon rate of 8% payable semiannually. The bond is bought to yield an annual nominal rate of 10% convertible semiannually. At this yield rate, the present value of the redemption value is 601 on the purchase date. Calculate the purchase price of the bond. A. 911 B. 923 C. 956 D. 974 E. 984
Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Par value $100 Coupon interest rate 14% Years to maturity 4 Current value $100 a. Calculate the yield to maturity (YTM) for the bond. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain. a. The yield to maturity (YTM) for the bond is%. (Round to two decimal places.)
A Treasury bond maturing on December 15, 2020 is yielding 3.45% and is priced at $1,124.36. What is this bond's annual coupon rate as of October 31, 2016?
Give typing answer with explanation and conclusion A 20-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate of 12%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.) Bond Prices Bond Equivalent Annual Yield to Maturity Effective Annual Yield to maturity $950 $1000 $1050
Assume you have a bond with a semi-annual interest payment of $50, a par value of $1 comma 000, and a current market price of $870. What is the current yield of the bond?
A $1,000 face value bond currently has a yield to maturity of 9.06%. The bond matures in three years and pays interest annually. The coupon rate is 7.00%. What is the current price of this bond? Group of answer choices $947.91 $949.60 $1,005.26 $1,008.18
Assume a bond that promises eight annual coupon payments of $70 and will repay its face value of $1000 at the end of the eight years. Assuming that you are offered the bond for a price of $1035.94, use detailed workings to compute the implied YTM
A bond with $1,000 face value and $50 annual coupon payments is being priced at $1,175. What is the bond's current value?

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