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could anyone help me to solve these problems ? i t 1whihoitefollowing statements isCORRECT? b. All else equal, if a bond's yield to maturity increases,
could anyone help me to solve these problems ?
i t 1whihoitefollowing statements isCORRECT? b. All else equal, if a bond's yield to maturity increases, its price will decrease c. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium. e. If a bond's yield to maturity quals its coupon rate, the bond will sell at a discount. 8A 15-year bond with a face value of S1,000 currently sells for $850. Which of the following is CORRECT a. The bond's yield to maturity is lower than its coupon rate. b. The bond's coupon rate is greater than its yield to maturity. c. The bond's yield to maturity is equal to its coupon rate d The bond's yield to maturity exceeds its coupon rate. e. The bond's coupon rate will change next year 18202 e2 9. A 12-year, $1,000 face value bond has a 9% annual coupon, and a yield to maturity of 8%. What is the pr of the bond? a. $1,075 b. $1,000 c. $ 928 d. $1,469 e. None of above You wish to purchase a 20-year, $1,000 face value bond that makes semiannual interest payments of $40. I you require a 10% yield to maturity, what price should you be willing to pay for the bond? a. $619 b. $674 c. $761 d. $828 e. $902 10. ll. A bond that matures in 12 years has a 9% sent annual coupon and a face value of S 1,000. The bond has a yield to maturity of 8%, what is the price ofthe bond today? a. S 927.52 b. $928.39 c. $1,076.23 d. $1,075.36 e. None of above 12. Due to numerous lawsuits, major chemical manufacturer has recently experienced a market reevaluation. The firm has 15-year, 8% semiannual coupon bonds. The required nominal rate on this debt has now risen to 16%. What is the current value of this bond? a. S450 b. 550 c. $1,000 d. $1,273 e. None of above A 20-year, $1,000 face value bond has a 9% annual coupon. The bond bond's yield to maturity? If its yield to maturity remains at its current rate for 5 years, what will be the price of the bond 6 years from now? currently sells for $925. What is the 13Step by Step Solution
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