Question
A bond has face value of $1,000, coupon rate of 4%, yield to maturity of 7%, and matures in 11 years. The coupon payments are
A bond has face value of $1,000, coupon rate of 4%, yield to maturity of 7%, and matures in 11 years. The coupon payments are made semiannually. Find current yield and capital gains yield in eight years. Group of answer choices CY=4.35%, CGY=2.65% CY=5.18%, CGY=1.82% CY=0, CGY=7% CY=7%, CGY=0% Flag question: Question 4 Question 41 pts A bond has face value of $1,000, coupon rate of 5%, yield to maturity of 3%, and matures in 16 years. The coupon payments are made annually. Find bond value in seven years. Group of answer choices $1,251.22 $1,155.72 $1,124.61 $1,000.00 Flag question: Question 5 Question 51 pts A bond has face value of $1,000, coupon rate of 5%, yield to maturity of 3%, and matures in 16 years. The coupon payments are made annually. Find current yield and capital gains yield in 7 years. Group of answer choices CY=4.33%, CGY=1.33% CY=4.33%, CGY=-1.33% CY=4.00%, CGY=-1.00% CY=5.00%, CGY=-2.00% Flag question: Question 6 Question 61 pts An unconventional bond pays no coupon for two years. After that, the coupon rate is 5% for five years. After that the coupon rate is 8% for seven years. The bond matures in 14 years. Face value is $15,000. The coupon payments are made annually. The required return on the bond is 10%. Find bond value today and this year's CY and CGY. Group of answer choices BV0=$7,945.70, CY0=0, CGY0=0 BV0=$9,297.55, CY0=0, CGY0=0 BV0=$12,635.16, CY0=0, CGY0=10% BV0=$9,297.55, CY0=0, CGY0=10% Flag question: Question 7 Question 71 pts An unconventional bond pays no coupon for two years. After that, the coupon rate is 5% for five years. After that the coupon rate is 8% for seven years. The bond matures in 14 years. Face value is $15,000. The coupon payments are made annually. The required return on the bond is 10%. Find bond value, CY, and CGY in 7 years. Group of answer choices BV7=$13,539.47, CY7=0, CGY7=10% BV7=$9,297.55, CY7=0, CGY7=10% BV7=$13,539.47, CY7=8.86%, CGY7=1.14% BV7=$12,635.16, CY7=5.94%, CGY7=4.06% Flag question: Question 8 Question 81 pts A bond has face value of $1,000, coupon rate of 6%, makes coupon payments annually, and matures in 5 years. Based on current interest rates, the YTM is 6%. However, you expect interest rates to rise in 2 years. When that happens, the YTM for the bond will go up from 6% to 8%. Find bond value one year from today. Group of answer choices $951.38 $954.13 $945.21 $891.81
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