What is the coupon rate on the bond

Reference no: EM133195920 , Length: Word count: 2 Pages

Question 1: Is the yield to maturity on a bond the same thing as the required return? IS YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM?

Question 2: Suppose you buy a 7 percent coupon, 20-year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why?

Question 3: Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of € 1,000, 23 years to maturity, and a coupon rate of 5.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond?

Question 4: A Japanese company has a bond outstanding that sells for 91.53 percent of its ¥100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

Question 5: Essay Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and selling for $948. At this price, the bonds yield 5.9 percent. What must the coupon rate be on the bonds?

Question 6: Sqeekers Co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current bond price?

Question 7: Heginbotham Corp. issued 20-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?

Question 8: DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $965. The bonds make semiannual payments. What must the coupon rate be on these bonds?

Reference no: EM133195920

Questions Cloud

What are some of the challenges in this area : Today, there is lots of focus on improving interoperability to increase health information exchange. What are some of the challenges in this area

Reflection paper-therapeutic communication assignment : France and Weikel discussed the importance of empathy, warmth, and genuineness in order to establish a therapeutic alliance with clients in the human services

Describe the patterns and causes of unintentional injuries : Injuries with a Focus on Unintentional Injuries and Deaths - Describe the patterns and causes of unintentional injuries among children and the elderly

Digital forensic tools and tech : University of Cumberlands-Students are provided with strong educational programs and courses that allow them to be servant-leaders in their disciplines

What is the coupon rate on the bond : Harvard University - Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM?

Discuss the various types of ionizing radiation : Discuss the various types of ionizing radiation. Differentiate between foodborne infections and foodborne intoxications

Organization overall strategy : Silicon Valley College-The reading this discusses strategy and how ERM can be integrated with an organization's overall strategy.

Reports of water shortages in various parts of the world : Your classmate concludes that reports of water shortages in various parts of the world must be exaggerated. Why is this an invalid conclusion?

Example of cyber terrorism : New England College-Write a brief Discussion describing the terrorism attack and it's aftermath.

User Account

All Pages