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The 6 percent annual coupon bonds of Greentree Inc are selling for 1020 have a face value of 1000 and have a yield to maturity of 5.43 percent How many years will it be until these bonds matu?
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What is current yield on a bond that the return is 10 percent with a 1000 par value bond with a 10 percent annual coupon and the bond pays interest annual and there are 3 years remaining?
Answer . 8.5
What is the yield to maturity for a bond that has 10 years until maturity and a coupon rate of 8 sells for 1100?
YTM= 6.602%. ------------------------------------------------------------------------------------. I got a different answer, I got YTM 6.67% . 80 - 10 (80 coupon -100 cap… loss / 10 years) __________________ 1,110 + 1,000 / 2 (purchase price + 1,000 par /2) . therefore, 70 / 1,050 = 6.67% (rounded) . the formula for YTM is: Coupon Rate + Cap gain OR - Cap loss (subtract for a premium bond as seen here) ____________________________ (divided by...) Purchase Price + 1,000 par / 2 . you'll get a decimal answer which you can x by 100 to get the decimal in the right place, then round. example, 0.066666 x 100 = 6.66666 round to 6.67%. . It's not as complicated as it looks, just memorize the formula =).
If a bond with face value of 1100 and a coupon rate of 8 is selling at a price of 970 is the bond's yield to maturity more or less than 8 and what is the current yield?
When a bond sells at a discount, the yield is higher than the coupon rate. Your income is 1,100 x 8% = 88. You invested 970. 88/970 = 9.07% yield.
A 6-year Circular File bond pays interest of 80 annually and sells for 950 What are its coupon rate current yield and yield to maturity?
Bond Pricing. A 6 year circular file bond pays interest of $80 annually, and sells for $950.. What are its coupon rate, Current yield, and yield maturity?
If you purchase a zero coupon bond today for 225 and it matures at 1000 in 11 years what rate of return will you earn on that bond to the nearest 10th of 1 percent?
Po =I (PVIFA kdn) + M(PVIF kdn). = $225 = $ 1,000 (PVIF) note 1 = 0 since this is a zero coupon bond.. (PVIFkd, ) =0.317
Jill bought a bond with face value of 1000 the bond has a coupon rate of 6 what is the current yield if the market price of the bond is 1027?
By definition itself, Current yield of this bond 6% of 1000/1027=60/1027=5.84%...... hope it solves ur doubt
Price and Yield- An 8 percent semiannual coupon matures in 5 years The bond has a face value of 1000 and a current yield of 8.21 percent What are the bonds price and YTM?
The bond's price is $996.76. The YTM is 8.21%. by E. Sanchez
A firm has an issue of 1000 par value bonds with a 12 percent stated interest rate outstanding The issue pays interest annually and has 10 years remaining to its maturity date If bonds of similar r?
The Heuser Company's currently outstanding bonds have a 10 percent coupon and a 12 percent yield to maturity Heuser believes it could issue new bonds at par that would provide a similar yield to matu?
After cost of debt = 12% x (1-0.35) = 7.8%
A ten-year bond with par value equals1000 pays 10 percent annually if sismilar bonds are currently yielding 6 percent annually what is the market value of the bond use semi-annual analysis?
A ten-year bond pays 11 percent interest on a 1000 face value annually If it currently sells for 1195 what is its approximate yield to maturity?
A ten-year bond pays 11 % interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity
If you have a 10 percent coupon bond with 19 years left to maturity the bonds make annual payments and currently sells for 1102.05 what is the YTM?
A bond that pays 1 coupon(s) of 10% per year, that has a market value of $1,102.05, and that matures in 19 years will have a yield to maturity of 8.87%. What does it mean? W…ell, bond investors don't just buy only newly issued bonds (on the primary market) but can also buy previously issued bonds from other investors (on the secondary market). Depending on whether a bond on the secondary market is bought at a discount or premium, the actual rate of return can be greater or lower than the quoted annual coupon rate. This is why bond investors need to look at YTM, which measures the bond's yield from the day the investor buys it to the day it expires, when the principal is paid to the bondholder.
To help finance a major expansion ABC Inc sold a noncallable bond several years ago that now has 15 years to maturity This bond has a 10.25 percent annual coupon paid semiannually. trading price?
You need to know the current yield of the bond to answer this question. The yield would be a function of the current risk free rate (likely a simlar maturity Treasury security… if ABC issued in US dollars) and the current risk premium or credit spread for ABC.
A 1000 par value 12-year bond with a 9 percent coupon rate recently sold for 980 What is the yield maturity rate?
Calculate the PV of a bond having 5 years to maturity a face value of 2000 annual payment of 50 and a market interest rate of 5 percent?
PV = $1,783.53 =PV(5%,5,50,2000,0) PV( interest_rate, number_payments, payment, FV, Type )