What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 7% fixed interest for the duration of the bond? yield = [?] % %3D

Q: Each of the bonds shown below pays interest annually. Bond Par Value Coupon Years to Maturity…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: If 8-year T-bonds have a yield of 6.36%, 8-year corporate bonds yield 8.36%, the maturity risk…

A: An additional amount an investor expects when an investor invests in the risky securities is term as…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…

A: Face Value of Bond =$ 1000 Issued Price or Price Paid = $950 Interest Rate = 6% Interest Paid =…

Q: what is the yield on 5,000, 12% Acts bond priced at 95 plus 20 comission

A: Introduction :- A bond is a financial instrument in which the issuer (debtor) owes the holder…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…

A: GIVEN, FACE VALUE = $1000 PRICE = $950 INTEREST RATE = 8%

Q: What is a discount ask yield on a bond? if the bond is priced at 1,000 and 80 days to maturity and…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: If 10-year T-bonds have a yield of 7.2%, 10-year corporate bonds yield 10.1%, the maturity risk…

A: The objective of this question is to calculate the default risk premium on the corporate bond. The…

Q: Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. a. What is the…

A: Current selling price of the bond is the present value of the future payments. Future payments…

Q: what is the yield on a 4-year BBB-rated corporates bond with a liquidity premium of 0.5%?

A: A bond's yield is the rate of return received from the bond's coupon payments. It can be calculated…

Q: If the YTM on the following bonds are identical except, what is the price of bond B?   Bond A…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic coupons or…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $875,…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: What is the fair market value of a bond with the following features: (1) par value of $1000, (2)…

A: Price of bond is present value of coupon payment +Present value of par value of bonds taken on yield…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…

A: given information   face value = $1000 discount price = 950  interest rate = 6%

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $875,…

A: Yield is the percentage representation that shows interest earned by the company n the total…

Q: A bond with 18 years to maturity has an annual interest payment of $35. If the bond sells for its…

A: Time to maturity=18 yearsAnnual interest payment=$35 Assume the bond’s par value is to be $1000.…

Q: What is the Holding period return____%   Purchase price of the bond (pv) $910 Sale price of the…

A: Bonds are debt instruments issued by companies. Bonds pay periodic coupons or interests to the bond…

Q: If the current yield of a bond(Face value=Rs 100) bearing interest at 12 % is 15%, the price is…

A: The current yield of the bond is the annual coupon dividend by the price of the bond.   Current…

Q: What is the yield to maturity of a bond that just paid an annual coupon payment of $50, has 10 years…

A: Given the following data,number of period (N) = 10 yearsPresent Value (PV)= -$965Face value (FV) =…

Q: if the market price of a $1,000-face-value discount bond changes from $950 to $975, the yield to…

A: Yield to maturity if the price is $950 = (F - P) / P= ($1000 - $950) / $950= $50 / $950= 5.26% Yield…

Q: Assume the following Risk Premiums: DRP  ?  LP = 0.25% MRP =1.15% 10-year Government bonds yield…

A: Given that, 10-year corporate bonds yield (R)= 6.75%. 10-year Government bonds yield (Rf)= 4.65%…

Q: Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. What is the current…

A: In order to find the current price of a bond one has to calculate the present value of a bond.…

Q: If the nominal rate of return on a corporate bond is 15%, the pure rate is 4%, and the risk premium…

A: Inflation refers to rise in prices of goods and services over a period of time. Inflation measures…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $850,…

A: Issue Price Paid of Bond  =$850 Bond Interest rate = 8% Face Value of Bond = $1000 Interest Paid =…

Q: What is the coupon rate of a ten-year, $10,000 bond with semiannual coupons and a price of…

A: A bond's coupon rate is the fixed annual interest rate paid to the bondholder, expressed as a…

Q: If 10-year T-bonds have a yield of 4.0%, 10-year corporate bonds yield 7.6%, the maturity risk…

A: An additional amount an investor expects when an investor invests in the risky securities is term as…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $850,…

A: The Current Yield is the investment annual income which is divided by the market price. It shows the…

Q: What is the yield on a corporate bond with a $1000 Face value purchased at a discount Price of $850,…

A: Bonds are long-term financial debt for the company. Bonds help the company to raise funds and in…

Q: Suppose the current price of the bond is $95, the YTM is 4%, and the duration of the bond is 9. If…

A: Initial price of bond is $95 YTM is 4% Duration of bond is 9 YTM decrease from 4% to 3.9% To Find:…

Q: What is assumed the be the face value aka par value aka principal aka loan amount of a bond? It's…

A: Bonds are debt instruments issued by companies.Each bond has a face value and face value of a bond…

Q: Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 8.90%. Also,…

A: Solution:- Given, T-bonds - 10 year have a yield = 5.30% 10-year corporate bonds yield = 8.90%…

Q: If 10-year T-bonds have a yield of 7.1%, 10-year corporate bonds yield 9.7%, the maturity risk…

A: Bonds are debt instruments issued by companies.T bonds are treasury bonds that are issued by…