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A 6% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 6.8535%. What are
A 6% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 6.8535%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond's price: $ YTM: % Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1,000 par value. Your required return on Bond X is 8%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 7.5%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.) Do not round intermediate calculations. Round your answer to the nearest cent. Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.16%. If Janet sold the bond today for $1,026.88, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. %
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