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Calculate the yield to maturity of the bond

Assignment Help Financial Accounting
Reference no: EM132971954

Questions - Bonds Valuation

Q1. A 5-year bond with a coupon rate of 4% has a face value of $1000. What is the annual interest payment?

Q2. A 3-year bond with 10% coupon rate and $1000 face value yield to maturity is 8% . Assuming annual coupon payment, calculate the price of the bond.

Q3. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% . Assuming annual coupon payment, calculate the price of the bond.

Q4. A 10-year bond with 12.5% coupon rate and $1000 face value yield to maturity is 14.5% . Assuming semiannual coupon payment, calculate the price of the bond.

Q5. A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $878.31, calculate current yield assuming annual interest payments.

Q6. A five -year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $1075, calculate current yield assuming annual interest payment.

Q7. A twenty year bond is currently selling at $850 and current yield is 8%. What coupon rate offered by company?

Q8. A twenty year bond is currently selling at $1250 and current yield is 8%. What coupon rate offered by company?

Q9. A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

Q10. A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $878.31, calculate the yield to maturity of the bond (assuming annual interest payments).

Q11. A ten -year bond has an 10% coupon rate and a face value of $1000. If the current price of the bond is $1150, calculate the yield to maturity of the bond (assuming annual interest payments).

Reference no: EM132971954

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