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A 1000 face value bond has a remaining maturity of 10 years and a required return of 9 percent The bonds coupon rate is 7.4 percent What is the fair value of this bond?
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A 1000 par value 12-year bond with a 9 percent coupon rate recently sold for 980 What is the yield maturity rate?
9.28
If a coupon bond is selling at par does the current yield equal its yield to maturity?
Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.
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?
8.5
What is a zero-coupon note?
A zero-coupon note is a note which pays at maturity the value of the note with no separate interest payments.
If Cabell Corp bonds pay an annual coupon rate of 10 percent and the investors required rate of return is now 8 percent on these bonds what will be the price?
par value
Yest Corporation's bonds have a 15 year maturity a 7 percent semiannual coupon and a par value of 1000?
$10008.65
How do you calculate a bond value that has a ten-year maturity a 12 percent coupon rate with annual payments and a 1000 par value?
You would need to know a Yield To Maturity to answer this question.
If a coupon bond is selling at par does the current yield equal its yield to maturity?
Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.
A 1000 par value 12-year bond with a 9 percent coupon rate recently sold for 980 What is the yield maturity rate?
9.28
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?
4 years
Does bond pay interest on maturity?
Yes. At maturity you get the final coupon payment in addition to the return of principal.
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?
8.5
What is the formula for pricing bond after holding for sometime?
C = coupon payment n = number of payments i = interest rate, or required yield M = value at maturity, or par value
Order the events in the life of a bond from earliest to latest A bond maturity B bond issue C coupon payment?
1)bond issue 2)coupon payment 3)bond maturity
What is a zero-coupon note?
A zero-coupon note is a note which pays at maturity the value of the note with no separate interest payments.
Calculate the value of a 100 debenture in perpetuity the debenture pays a coupon rate of 11 percent and the required rate of return is 9 percent per year?
122.22
Difference between coupon rate and yield to maturity?
The coupon rate is the actually stated interest rate. This is the rate earned on a NEW issue bond. The yield to maturity takes into consideration the purchase price of a bond bought in the secondary market. For example, if you buy a $1,000 bond for $1100 which matures in 10 years and has a coupon of 5%, your coupon is 5%, but your yield to maturity would be closer to 4% because you paid $1100, but will only get back $1,000 at maturity (losing $100). The "loss" reduces the return.
