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Bondss
Bondss
Consider an annual coupon bond with a face value of $100, 55 years tomaturity, and a price of $77. The coupon rate on the b
What is the price of a 4-year, 8.1% couponrate, $1,000 face value bond that pays interest quarterly if the yield to maturity on
solve PV of payments
rate=ytm 2.93%
nper 16
pmt =coupons -20.25
fv -1000
Price $886.30
What is the yield to maturity of a 9.4% semiannual coupon bond with a face value of$1,000 selling for $875.82 that matures i
solve for rate
nper= 2*11 22
pmt=9.4%*1000/2 47
PV -875.82
FV 1000
Rate 5.70%
Yield to maturity 5.70%
Wee Beastie Animal Farm bonds have 7 years to maturity and pay an annual coupon at the rate of 5.7%. The face value of the
Capital gain yield = YTM- Current yield
current yield 0.053573
YTM 0.0461
Capital gain yield = -0.747%
A 11-year bond pays interest of $28.10 semiannually, has a face value of $1,000, and is selling for $788.07. What are its annua
coupon rate 5.620%
Yield to Maturity
solve for rate enter nper 2*11=22, pmt=28.1, pv 788.07, fv 1000
Rate 4.3220%
Yield to Maturity=rate *2 as 8.644%
Acme Inc. just issued a bond with a$10,000 face value and a coupon rate of7%. If the bond has a life of 30years, pays semim
Prive=PV
rate=ytm/2 as it is semi annual 4.50%
nper =2*30 60
pmt= 7%*10,000/2 -350
Fv -10,000
PV $7,936.20
You have just purchased a 15minus−year, $1,000 par value US Government bond for$909.20. The yield to maturity on the bo
solve for pmt then divide the answer by 1000 enter rate 8.6%, nper=15, pv=-909.2, Fv =1000
pmt $75.00
7.5%
The Federal Government 2minus−year coupon bond has a face value of$1,000 and pays annual coupons of$33. The next cou
f $77. The coupon rate on the bond is 2%. If you can reinvest coupons at a rate of 2% perannum, then how much money do you have if yo
e of 5.7%. The face value of the bonds is $1,000. The price of the bonds is $1,063.97 to yield 4.61%. What is the capital gain yield on the b
for $788.07. What are its annual coupon rate and yield tomaturity?
as a life of 30years, pays semiminus−annual coupons, and the yield to maturity is9%, what will the bond sellfor?
The yield to maturity on the bond is8.6%. What is the couponrate?
al coupons of$33. The next coupon is due in one year.Currently, the one and twominus−year spot rates on Federal Government zero cou
aturity on this bond is9%. Assuming no change inrisk, this bond would sell at a_____higher price than par________ in order to compensa
yield to maturity of thebonds?