A $1,000 bond is purchased for $975 on March 1, 2006. The bond matures on July...
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A $1,000 bond is purchased for $975 on March 1, 2006. The bond matures on July 1, 2025 and pays an 11% coupon. What is its yield to maturity? (Remember in the formula the time to maturity must be in years). On December 16,2005 an investor buys a $35,000 face value Bell Canada, 10.35% coupon bond with a maturity date of Dec 15, 2019 for $36,453.00. Calculate the yield to maturity on this bond. Calculate the price of an $8,000, 3 year bond paying 10% interest annually when the discount rate is 9%. Calculate the present value of the income stream resulting from a $5,000 bond paying 9% interest semi-annually when the maturity date is 6 months from now (current market rates are 7% on comparable bonds). A $1,000 bond is purchased for $975 on March 1, 2006. The bond matures on July 1, 2025 and pays an 11% coupon. What is its yield to maturity? (Remember in the formula the time to maturity must be in years). On December 16,2005 an investor buys a $35,000 face value Bell Canada, 10.35% coupon bond with a maturity date of Dec 15, 2019 for $36,453.00. Calculate the yield to maturity on this bond. Calculate the price of an $8,000, 3 year bond paying 10% interest annually when the discount rate is 9%. Calculate the present value of the income stream resulting from a $5,000 bond paying 9% interest semi-annually when the maturity date is 6 months from now (current market rates are 7% on comparable bonds).
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To calculate the yield to maturity YTM of a bond you need to use the present value formula and solve ... View the full answer
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