The market price of a $1000 par value bond issued by Kramerica, Inc that makes semiannual coupon payments is $985.03. This bond has 25 years to maturity and a yield to maturity of 6.26%. What is the coupon rate?
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- Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?A bond that pays interest semiannually has a coupon rate of 5.08 percent and a current yield of 5.37 percent. The par value is $1,000. What is the bond's price?A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?
- What is the yield to maturity on a bond that has a price of $1,700 and a coupon rate of 12% annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell? (Using financial calculator)What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does the fact that it sells at a discount or at a premium tell you about the relationship between rd and the coupon rate?The market price of a semi-annual pay bond is $986.15. It has 15.00 years to maturity and a yield to maturity of 7.21%. What is the coupon rate?.
- Consider a 25-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ *** (Round to the nearest cent.)A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25 each. What is the coupon rate?Suppose that Ally Financial Inc. issued bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 10% (annual payments). The yield to maturity on this bond when it was issued was 9%. a. What was the price of this bond when it was issued? b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? C a. What was the price of this bond when it was issued? The price of this bond when it was issued was $ (Round to the nearest cent.) b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? The price before the first payment is $. (Round to the nearest cent.) c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after The price after the first…
- What is the yield to maturity on a 10-year, 9%annual coupon, $1,000 par value bond that sellsfor $887.00? That sells for $1,134.20? What does the fact that a bond sells at a discount orat a premium tell you about the relationshipbetween rdand the bond’s coupon rate?Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 10% (annual payments). The yield to maturity on this bond when it was issued was 4%. a. What was the price of this bond when it was issued? b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? a. What was the price of this bond when it was issued? The price of this bond when it was issued was $ (Round to the nearest cent.) b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? The price before the first payment is $. (Round to the nearest cent.) c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon…A bond has a $1,000 face value, a market price of $1,045, and pays interest payments of $74.50 every year. What is the coupon rate?