Question
Hello, I needed help with these problems. Please show work 1.Semiannual Coupons Roxy Bonds will mature in 16 years, the coupon rate of the bond
Hello, I needed help with these problems. Please show work
1.Semiannual Coupons
Roxy Bonds will mature in 16 years, the coupon rate of the bond is 5% paid SEMIANNUALLY, if the yield to maturity is 7%; what is the value of the bond? Assume a face value of $1,000.
____ Please enter 2 digits after the decimal point
2.
. Zero Coupon Bond
The Treasury Department sells a zero-coupon bond that will mature in two years. The bond has a face value of $10,000, and sold at auction for $9,400. What is the annual return for an investor buying the bond?
____% Please enter 2 digit after the decimal point
3.
Calculating YTC
Sadik Inc.'s bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)?
(Pick one)
- 7.45%
- 7.08%
- 6.39%
- 7.82%
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