Question: Question 1 : Dynamic Systems has an outstanding bond that has a $ 1 , 0 0 0 par value and a 6 percent coupon

Question 1: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 6 percent coupon rate. Interest is paid semiannually. The bond has 13 years remaining until it matures. Today the going interest rate is 8 percent, and it is expected to remain at this level for many years in the future.
Compute the current yield. Do not round intermediate calculations. Round your answer to two decimal places.
%
Compute the capital gains yield that the bond will generate this year. Do not round intermediate calculations. Round your answer to two decimal places.
%
Question 2: Four years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $835.
What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place.
%
If the bond can be called in five years for a redemption price of $1,081, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place.
%
Question 3: Nine years ago, Elite Elements issued a 15-year bond with a $1,000 face value and a 5 percent coupon rate of interest (paid semiannually). If investors require a return equal to 6 percent to invest in similar bonds, what is the current market value of Elite's bond? Do not round intermediate calculations. Round your answer to the nearest cent.

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