Home / Questions / Bond XYZ and bond ABC both pay annual coupons, mature in seven years, have a face value o
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Bond XYZ and bond ABC both pay annual coupons, mature in seven years, have a face value of $1,000, and have the same yield-to-maturity. Bond XYZ has a coupon rate of 8.5 percent and is priced at $1,035.09. Bond ABC has a coupon rate of 6.4 percent. What is the price of bond ABC? |
XYZ |
ABC |
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Coupons |
85 |
64 |
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Period |
7 |
7 |
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FV |
1000 |
1000 |
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YTM |
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Price |
1035.09 |
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Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.6 percent, and are scheduled to mature in four years. One year ago, you bought one of those bonds for $998. The bond just paid a coupon. If the percentage return on your bond was 4.6 percent over the past year, what is the price of the bond today? |
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Today, a bond has a coupon rate of 10.8 percent, par value of $1000, 13 years until maturity, YTM of 9.6 percent, and semiannual coupons with the next one due in six months. One year ago, the price of the bond was $1,075. What is the current yield of the bond today? |
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Microhard has issued a bond with the following characteristics: |
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Par: $1,000 |
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Time to maturity: 15 years |
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Coupon rate: 11 percent |
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Semiannual payments |
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Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your final answersto 2 decimal places. (e.g., 32.16)): |
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Price of the Bond |
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a. |
11 percent |
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b. |
13 percent |
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c. |
9 percent |
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Stone Sour Corp issued 20 year bonds 2 years ago at a 7.1% coupon rate. The bonds make semi-annual payments |
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If these bonds sell for 105% par value, what is the YTM? Work must be shown as a formula. |
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Settlement Date |
1/1/2000 |
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Maturity Date |
1/1/2018 |
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Annual Coupon Rate |
7.10% |
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Coupons/year |
2 |
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Face value (%of Par) |
100 |
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Bond Price (% of Par) |
105 |
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Rhiannon Corp. has bonds on the market with 15.5 years to maturity. |
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The YTM is 6.2%, current price is $1039.00. The bonds make semi annual payments. |
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What is the coupon rate? |
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A Japanese company has a bond outstanding that sells for 96% of it's 100,000 yen par value. |
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The bond has a coupon rate of 6.3% paid annually and matures in 19 years/ |
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What is the YTM of this bond? |
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An investment offers a 12% total return over the coming year. An investor thinks |
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the total real return will only be 8%. What does the investor think the inflation rate will be |
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over the next year? |
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