What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 6% fixed interest for the duration of the bond? yield = [? ] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = interest paid price paid Enter

What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 6% fixed interest for the duration of the bond? yield = [? ] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = interest paid price paid Enter

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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Question

What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $950, if
it pays 6% fixed interest for the duration of the
bond?
yield = [ ? ] %
Give your answer as a percent rounded to the nearest
hundredth.
Hint: yield = interest paid
price paid
Enter

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Why are common sized financial statements useful? How do they differ from traditional financial statements in the way that they are calculated?
What is the fair market value of a bond with the following features: (1) par value of $1000, (2) coupon payment of $45 and (3) 10-year maturity? Assume that current interest rates are 4%. $1040.55 $1000.00 $918.89 $1110.00
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(a) Compute the market price (Vb) of the following bonds: (6)$1,000 par value, 10-yr maturity, and 8% coupon rate that is paid semi-annually? Assume the yield to maturity of 12%.$1,000 par value, 10-yr maturity, and 6% coupon rate that is paid semi-annually? Assume the yield to maturity of 12%.$1,000 par value, 10-yr maturity, and 8% coupon rate that is paid semi-annually? Assume the yield to maturity of 6%.(b) Based on your answers comment on the relationship (what happens to one variable when the other goes up/down) of (a) price with yield to maturity and (b) price with coupon rate. (4)
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Last Part of Question D and question E please
find the coupon rate of a bond that is sold at 950 $ and has a par value with $1,000, 5 years to maturity, and a discount rate of 6%? O a. 4.7%. b. 3.2%. O c. 5.3%. O d. 6.2%.
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What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $850, if it pays 8% fixed interest for the duration of the bond? yield = [?] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = interest paid price paid Enter

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