None You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi-annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is theyield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%

We can determine the bond's yield to maturity (YTM) using the following information: Face value (FV)…

Answered: You just paid $1,200 for a bond with…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?
Consider a bond with a $1,000 par value, 8% annual coupon, 10 years to maturity, with an interest rate of 6%. The price of the bond is $1,148. What is the duration of this bond? a. 4.62 years b. 6.78 years c. 7.45 years d. 9.93 years
You purchased a coupon-bearing bond at $800 and resold it at $900 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. 0.075 O B. 0.125 O C. 0.067 O D. 0.200
Suppose the face value of a bond which matures in seven years is $5,000, and pays a coupon of $75. Suppose the bond was purchased at a price of $2,000, and the price is estimated to be constant the entire time until maturity. What will be the rate of return on the bond? 40% 4% .0375% 3.75%
Solve this one
Can someone help me pls. Thank you!
You have purchased a 14 year $1000 per value bond. The annual coupon rate on the bond is 9.7% paid each 6 month. If you expected to earn the market rate of 12.8% as the return on this bond. How much did you pay for it a. 800.45 b. 830.5 c. 537. 43 d. 802. 67
Assume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. a. What is the yield to maturity of each bond? Bond coupon YTM 6% ? % 8% ? % 10% ? % b. what is the duration of each bond? Bond coupon Duration 6% ? years 8% ? years 10% ? years
You own a $1,000 par value bond with 20 years to maturity that is paying an annual coupon rate of interest of 11%. If the current yield to maturity on this bond is 12%, what is the value of the bond? The bond makes semi-annual interest payments. Select one: A. $925.31 B. $892.58 C. $924.77 D. $980.15
A bond has a 12% coupon rate. The coupon is paid semi-annually and the last coupon was paid 79 days ago. If the bond has a par value of $1,000, what is the accrued interest (assume a 364 day year)? Group of answer choices A. $20.44 B. $23.65 C. $26.04 D. $16.69 E. $22.49
A bond with 12 years to maturity has an annual interest payment of $65. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY: ....% YTM: .....%
You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 6%, with interest being paid quarterly. If you expect a 5% rate of return on this bond, how much did you pay for it? O $1,077.32 O $2,153.69 O $1,078.32 O $2,488.03

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi- annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is the yield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%