what is the bond's yield to maturity?
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Q: A 20-year, $1,000 par value bond has a 8.5% annual payment coupon. The bond currently sells for…
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Q: You purchase a bond with a coupon rate of 7.6 percent and a clean price of $1,150. If the next…
A: The clean price of the bond refers to the price provided on the exchange and is calculated as the PV…
Q: What would be your realized yield to maturity if you sold the bond after 10 years?
A: Realized yield to maturity (YTM) refers to the yield or total return earned or realized by the…
Q: what will its price be at that time
A: To calculate the bond's price one year from now, we can consider the information provided:Face…
Q: A bond that matures in 16 years has a $1,000 par value. The annual coupon interest rate is 12…
A: Bonds are debt instruments issued by companies. The issuing company pays periodic interests or…
Q: A bond that matures in 12 years has a $1,000 par value. The annual coupon interest rate is 7…
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Q: what is its yield-to-maturity?
A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…
Q: at what price do you expect the bond to sell a year from now? If it helps, you may use
A: Information Provided: Par value = $1000 Term = 20 years Price of bond = $925 Coupon rate = 9%…
Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…
A: For bond L, it is given that;Par value of the bond is $1000Yield to maturity is 5%Time period is 17…
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A: Bond valuation entails determining the present value of a bond's future cash flows, which include…
Q: onsidering the purchase of a $1,000 par value bond with a coupon rate of 5% (with interest paid…
A: Price of bond is the present value of the coupon payments plus present value of the par value of…
Q: what is the bond's current price?
A: PV = [ S CFt/(1 + i)t] + [FV / (1 + i)t]
Q: You buy an 8.9% coupon, paid annually, 8-year maturity bond for $945. A year later, the bond price…
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Q: Consider an annual coupon bond with a face value of $100, 14 years tomaturity, and a price of…
A: Future Value of Ordinary Annuity = P * ([1 + I]N - 1 )/I, where P is the payment amount. I is…
Q: What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current…
A: Introduction Bond Duration: Bond period is a metric for determining how much bond prices can…
Q: rate of return of the bond? W
A: Bond price refers to the amount which an investor is willing to pay at the time of existence of…
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A: A bond is a tradeable debt instrument that gives the bearer the right to earn interest in the form…
Q: Suppose you purchase a 10-year bond with 6.5% annual coupons. You hold the bond for four years and…
A: Life of bond = 10 YearsCoupon rate = 6.5%Holding period = 4 YearsYield to maturity =5.3%
Q: You purchase a bond with a coupon rate of 7.6 percent, a par value of $1,000, and a clean price of…
A: Accrued interest on a bond is the interest earned from the last coupon payment. Clean price of the…
Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…
A: I/Y = Rate = 10% N = Nper = number of years = 12 PMT = coupon = 1000*6% = -60 FV = future value or…
Q: A 5.60 percent coupon bond with 15 years left to maturity can be called in six years. The call…
A: I Periodic coupon amount 28 F Call price 1056 P Current market price/proceeds 1116.5 n…
Q: What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the…
A: Bonds are primarily the debt instruments using which a company can raise funds. With the given…
Q: A bond has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is…
A: Yield to Maturity:- Yield to Maturity: is the expected rate of return that the investors expects to…
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Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
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A: A call price is the amount the issuer pays to the investor upon redemption of a callable instrument…
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A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par…
Q: If a $1,000 bond with a 4 percent coupon (paid annually) and a maturity date of ten years is selling…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: The price today of a 4-year coupon bond with annual coupons, a coupon rate of 6%, and a face value…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: A bond has a face value of $1,000, has 5 years until maturity, and an annual coupon rate of 7%? It…
A: Bond price refers to the price at which the bonds are being traded in the market by the investor for…
Q: A bond has 10 years until maturity, a coupon rate of 8.1%, and sells for $1,190. Interest is paid…
A: a. Calculation of bond price:Formula used:
Q: What should the current market price be for a bond with a $1,000 face value, a 10% coupon rate paid…
A: I/Y = rate = 12% NPER = Number of years = 20 PMT = Coupon = -1000*10% = -100 FV = Future value or…
Q: A bond with 5 years to maturity, a face value of $2,000 and a coupon rate of 8.0% is selling for…
A: Using excel Rate and PV function
Q: Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years and…
A: Bonds are debt instruments issued by companies. The issuing company pays periodic interest or…
A 10 percent coupon bond has 15 years to maturity and could be called in two years. If the bond is called, investors will earn 4 percent. The call premium is one year of coupon payments. If coupon payments are made annually and par value is $1,000, what is the bond's yield to maturity?
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- A bond has 10 years until maturity, a coupon rate of 8.3%, and sells for $1,170. Interest is paid annually. ( Assume a face value of $1,000.) If the bond has a yield to maturity of 9.7% 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. 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. 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.A bond has 10 years until maturity, a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000.) What will be the rate of return on the bond?A bond offers a coupon rate of 4%, paid annually, and has a maturity of 6 years. The current market yield is 13%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?
- A 25-year coupon bond pays an annual coupon of 5 and has a face value of100. If the current price is 100, what is the yield to maturity? (b) The current (year t) price of a 5-year coupon bond is 100. It has a coupon rateof 5%, a yield to maturity of 5% and a face value of 100. In year t +1 newsarrives that short term interest rates will be twice as high for the foreseeablefuture. What is the percentage change in the price of the bond? Why did thebond’s price have to change in this way?(c) The expectations hypothesis says that the yield to maturity on an n year riskfree bond equals a constant risk premium plus the expected average of shortrates over the life of the bond. Which prediction of this theory is rejected bythe data and what amendments to the theory have been proposed in responseto this rejection?An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12% annual coupon. Bond L matures in 15 years, while Bond S matures in 1 year. a. What will the value of the Bond L be if the going interest rate is 6%, 8%, and 13% ? Assume that only one more interest payment is to be made on Bond S at its maturity and that 15 more payments are to be made on Bond L. Round your answers to the nearest cent. 6% Bond L $ Bond S $ $ $ -Select- 8% $ $ 13% b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? I. Long-term bonds have lower reinvestment rate risk than do short-term bonds. II. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. III. Long-term bonds have greater interest rate risk than do short-term bonds. IV. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. V. Long-term bonds have…Suppose you purchase a 10-year bond with 6.3% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 4.6% when you purchased and sold the bond, A)What cash flows will you pay and receive from your investment in the bond per $100 face value? B)What is the annual rate of return of your investment?
- Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 8 percent. How much would you pay for the bond if a. the coupon rate is 6 percent and the remaining time to maturity is 10 years?Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. b. What is the total (6-month) rate of return on the bond? Complete this question by entering your answers in the tabs below. Required A Required B Find the bond's price today and six months from now after the next coupon is paid. Note: Round your answers to 2 decimal places. Current price Price after six months $ $ 1,052.42 1,044.52Suppose you purchase a ten-year bond with 12% annual coupons. You hold the bond for four years and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 10.64% when you purchased and sold the bond, a. What cash flows will you pay and receive from your investment in the bond per $100 face value? b. What is the internal rate of return of your investment? Note: Assume annual compounding. a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flow at time 1-3 is $ (Round to the nearest cent. Enter a cash outflow as a negative number.) The cash outflow at time 0 is $ number.) (Round to the nearest cent. Enter a cash outflow as a negative The total cash flow at time 4 (after the fourth coupon) is $. (Round to the nearest cent. Enter a cash outflow as a negative number.) b. What is the internal rate of return of your investment? The internal rate of return of your investment is %. (Round to two decimal…
- A bond that matures in 17 years has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? a. The value of this bond if it paid interest annually would be $ (Round to the nearest cent.)What is the most we should pay for a bond with a par value of $1000, coupon rate of 4.2% paid annually, and a remaining life of 13 years? The yield to maturity is 4.2%. Assume annual discounting. (Round your answer to the nearest penny.)What is the yield-to-maturity of a bond with a coupon rate of 9.0%, par value of $2000, 7 years until maturity, and a value of $987.33 if coupons are paid annually with the next one due in one year?
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