Question: 1. Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What
1. Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interest annually. There are 2 years remaining until maturity. What is the current yield on the bond assuming that the required return on the bond is 10%? Use Excel
2. What is the yield-to-maturity of a $1,000 zero-coupon 2-year note priced at 96.79 and maturing on Dec. 15, 2019? Assume you bought the bond on February 21, 2018. Current rates are 3.5% Use excel
3. Find the yield to maturity on a semiannual coupon bond you are thinking of buying today. The bond price is $1128, the coupon rate is 6.5%, the face value is $1000, and was issued on Aug 15, 2013, maturing in 13 years. Use Excel
4. Suppose you purchase a 25-year, $1000-face value, zero coupon bond for $357.80 when issued on 3/1/2020. What is the bond's YTM? Use Excel
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