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Find the yield to maturity (%) of a 15 year, 9%, $1,000 par
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- Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?A 14-year, $1,000 par value Fingen bond pays 6% interest annually (assume semi- annual payments). The price of the bond is $1,100 and the market's required yield to maturity on a comparable-risk bond is 5.50%. a. Compute the bonds yield to maturity. b. Determine the value of the bond to you, given your required rate of return (the YTM on a comparable-risk bond). c. Should you purchase the bond? a. b. Coupon rate Par (FV) Years (n) m PMT PV (price) YTM Coupon rate Par (FV) Years (n) m PMT PV (price) YTM 6.0% $1,000 14 2 $30 Calculation $1,100 6.0% $1,000 14 2 $30 Calculation Note: if you want PV to be a positive number, you must use a minus sign for both pmt and FV 5.50%Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity. Assume the par value of the bonds is $1,000. Approximate Yield to Maturity? Exact Yield to Materity?
- Construct a bond schedule showing the accumulation of discount on a 6,000 4% bond with quarterly coupon, redeemable at 102 at the end of 2 years and 3 months and priced to yield 5 ½% m=4. (Accumulation of Discount)Consider a 16-year, $1,000 par value, 4% annual-pay bond that is currently trading at a flat price of $870.07. The capital gains yield (CGY) is closest to A. 0.3014%. B. 0.4468%. C. 0.5180%. D. 0.6202%.A. Compute the current price of each of the following bonds (assume $1,000 par value): a. 6 year, 6% quarterly bond; 12% market yield b. 20 year zero coupon bond; 6% market yield c. 10 year, 10% semiannual bond; 8% market yield
- The Pioneer Petroleum Corporation has a bond outstanding with an $60 annual interest payment, a market price of $820, and a maturity date in six years. Assume the par value of the bond is $1,000. Find. A. Coupon RateB. Current YieldC. Approx.. Yield to MaturityD. Exact yield to MaturityPrepare a duration table for a traditional coupon bond -6% coupon rate paid annually -$100,000 par value -10-year maturity -12% discount rate.A 7-year, 10% annual-pay bond has a par value of $1,000. If its yield-to-maturity (YTM) is 12.4%, the amount earned from reinvestment of the coupon payment is closest to A. $239.47. B. $321.41. C. $480.06. D. $500.79.
- Find the yield to maturity of a $1,000 par value bond with a coupon rate of 9% semi-annually and maturity of 6 years. The bond's price is $980.Consider a 16-year, $1,000 par value, 4% semiannual-pay bond that is currently trading at a flat price of $870.07. The current yield (CY) is closest to A. 2.30%. B. 3.68%. C. 4.60%. D. 5.43%.Calculate the yield to maturity of the corporate bond with a maturity value of $1000 and a coupon rate of 9% compounded semiannually, assuming the bond has 10 years remaining to maturity the current price of the bond is $1200. O A. 7.58% O B. 7.28% OC. 6.28% OD. 6.58%
