What is current yield-abc enterprises

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Q1. ABC Enterprises' bonds currently sell for $1,100. They have a 5-year maturity, an 7.5% coupon rate with interest paid semi-annually, and a par value of $1,000. What is their current yield?

Q2. Tropical Resort, Inc.'s bonds currently sell for $1,350 and have a par value of $1,000. They pay an 11% coupon rate with interest paid semi-annually, and have a 15-year maturity, but they can be called in 6 years at $1,125. What is their yield to call (YTC)?

Q3. Big Manufacturer Corporation's bonds have a 10-year maturity, a 5.25% coupon rate with interest paid semiannually, and a par value of $1,000. The nominal required rate of return on these bonds is 7.25%. What is the bond's intrinsic value?

Q4. A 10-year, $1,000 par value bond has a 6.25% coupon rate with interest paid semiannually. The bond currently sells for $900. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places.

Q5. O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 8.50%, they pay interest semiannually, and they sell at a price of $800. What is the bond's nominal (annual) coupon interest rate? Enter your answer rounded to two decimal places

Reference no: EM132419895

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