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P6-18 (similar to) Question Help 0 Missing information on a bond. Your broker faxed to you the following information about two monthly coupon bonds that
P6-18 (similar to) Question Help 0 Missing information on a bond. Your broker faxed to you the following information about two monthly coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: 3. Fill in the missing data from the information that the broker sent. What is the price of the IBM coupon bond? $ (Round to the nearest cent.) i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) AOL Coupon Bond $5,000 Features Face value (Par) Coupon rate Yield to maturity Years to maturity Price IBM Coupon Bond $1,000 6.5% 9.5% 20 ? 10.5% 30 $2,494.73 Print Done Treasury notes and bonds. Use the information in the following table: B. Assume a $100,000 par value. What is the yield to maturity of the August 2003 Treasury note with semiannual payment? What is the yield to maturity of the February 1997 Treasury bond with semiannual payment? What is the yield to maturity of the August 2003 Treasury note? % (Round to three decimal places.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Coupon Rate Maturity Date YTM Today is February 15, 2008 Price (per Issue Type $100 par Date value) Note Aug 2003 97.14 Bond Feb 1997 117.51 Current Yield Rating 4.50% 4.632% AAA 8-15-2013 2-15-2017 9.75% 8.297% Print Done P6-16 (similar to) Question Help Callable bond. Corso Books has just sold a callable bond. It is a thirty-year semiannual bond with an annual coupon rate of 5% and $5,000 par value. The issuer, however, can call the bond starting at the end of 12 years. If the yield to call on this bond is 10% and the call requires Corso Books to pay one year of additional interest at the call (2 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date? What is the bond price if priced with the assumption that the call will be on the first available call date? $ (Round to the nearest cent.)
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