Solution A bond with a coupon rate of maturing in years at a value of and a current market price of

Solution A bond with a coupon rate of maturing in years at a value of and

coupon rate of maturing in years at a value of and a current market price of will have a yield to maturity

Solution A bond with a coupon rate of maturing in years at a

value of and a current market price of will have a yield to maturity

Solution A bond with a coupon rate of maturing in

Solution A bond with a

Category: | General |

Words: | 1050 |

Amount: | $12 |

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Paper instructions

1) A bond with a coupon rate of 6.5%, maturing in 10 years at a value of $1,000 and a current market price of $950, will have a yield to maturity (using the approximation formula of between 6% and 6.5% between 6.5% and 7% between 7% and 7.5% between 7.5% and 8% Gray House is issuing bonds paying $95 annually that will mature 15 years from today. The bond is currently selling for $980 Calculate the current yield 9.5% 9% 9.7% none of these options 3) Gray House is issuing bonds paying $95 annually that will mature 15 years from today. The bond is currently selling for $980 Calculate the coupon rate 9% 9.5% 8.5% none of these options 4) The Laird Accounting Corporation has a bond outstanding with an $85 annual interest payment, a market price of $800, and a maturity date in five years. Assume the par value of the bond is $1,000. Calculate the Coupon Rate 8% .8% 8.5% none of these options 5) Solow Corp. has a bond with annual interest payments of $109 maturing in 10 years at a value of $1,000 per bond. The current market price is $960. What will the nominal yield be? 9.1% 12.5% 11.5% 10.9% 6) Allais Company's bond has an $85 annual interest payment that will mature in 10 years at a value of $1,000. The bond has a current market price of $1,140. What is the nominal yield of the bond? 7.5% 12.4% 8.5% 10% 7) The Laird Accounting Corporation has a bond outstanding with an $85 annual interest payment, a market price of $800, and a maturity date in five years. Assume the par value of the bond is $1,000. Calculate the Current yield 10.63% 10.55% 10.66% 10.60% 8) Gray House is issuing bonds paying $95 annually that will mature 15 years from today. The bond is currently selling for $980.Calculate Approximate Yield to Maturity 9.25% 9.5% 9.75% 9% 9) The Laird Accounting Corporation has a bond outstanding with an $85 annual interest payment, a market price of $800, and a maturity date in five years. Assume the par value of the bond is $1,000. Calculate the Approximate yield to maturity 14% 14.2% 14.4% 14.6% 10) A bond with a coupon rate of 6.5% (assume it is paid once annually), maturing in 10 years at a value of $1,000 and a current market price of $695, will have a current yield of 11.3% 10.2% 9.4% 8.5%1
1)
A bond with a coupon rate of 6.5%, maturing in 10 years at a value of $1,000 and
a current market price of $950, will have a yield to maturity (using the
approximation formula) of
between 6% and 6.5%
between 6.5% and 7%
between 7% and 7.5%
between 7.5% and 8%
2)
Gray House is issuing bonds paying $95 annually that will mature 15 years from
today. The bond is currently selling for $980
Calculate the current yield
9.5%
9%
9.7%
none of these options
3) Gray House is issuing bonds paying $95 annually that will mature 15 years
from today. The bond is currently selling for $980
Calculate the coupon rate

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