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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?
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XYZ
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ABC
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Coupons
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85
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64
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Period
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7
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7
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FV
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1000
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1000
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YTM
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Price
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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.
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11 percent
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b.
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13 percent
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c.
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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
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1/1/2000
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Maturity Date
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1/1/2018
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Annual Coupon Rate
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7.10%
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Coupons/year
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2
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Face value (%of Par)
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100
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Bond Price (% of Par)
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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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