2 Finance Questions- Due Wednesday by 7pm (EST)

2 Finance Questions- Due Wednesday by 7pm (EST)

Question # 00071759 Posted By: TLP Updated on: 05/19/2015 05:16 PM Due on: 05/20/2015
Subject Finance Topic Finance Tutorials:
Question
Dot Image

1) Company A issued a $1000 par bond with 25 years to maturity, 7% coupon rate, and semi-annual payments. Calculate the present value if the bond if the YTM is 7%.

How would the answer to #1 change if the YTM is 9%?

How would the answer to #1 change if the YTM is 5%?

What bond relationship are Problems 1-3 discussing?

2) Company B issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM?

Company B issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM?

A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity of five years. What is the current yield? What is the yield to maturity?

Dot Image
Report this Question as Inappropriate
Tutorials for this Question
  1. spqr
    Tutorial # 00066762 Posted By: spqr Posted on: 05/22/2015 12:23 AM
    Puchased By: 3
    Tutorial Preview
    The solution of 2 Finance Questions-...
      Get the Solution
    Attachments
    1-sol.docx (12.87 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    ...LP Rating Good work, but turned in past the date that I asked, which was stressful. Otherwise, positive 05/24/2015
  Get the Solution

Great! We have found the solution of this question!

Related Questions and Answers

Whatsapp Lisa