Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. A bond currently is trading for $2,395 and pays a coupon payment for $68.75 every six months, the annual YTM is 6.25% and its
4. A bond currently is trading for $2,395 and pays a coupon payment for $68.75 every six months, the annual YTM is 6.25% and its remaining maturity is 7 years. How much the investor will earn a par value payment at the end of seven years? * A) $3,080 O B) $2,500 C) $2,000 O D) $1,000 O E) None of the above 5. A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If interest rates rise and the yield to maturity increases to 8.6%, what will happen to the price of the bond? * A) The price of the bond will fall by $18.93. B) The price of the bond will fall by $15.78. C) The price of the bond will rise by $15.78. O D) The price of the bond will not change. E) None of the above 6. The 6.4 percent bond of Berberich, Inc. has a yield to maturity of 6.8 percent. The bond matures in eleven years, has a face a value of $1,000, and pays semiannual interest payments. How much is the approximate capital gain yield from the bond? * OA) 0.20% OB) 0.40% C) 3.30% O D) 3.50% O E) 6.60%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started