Question
SHOW THE STEPS ON THE BUSSINS ANAYLIST CALCULATER PLEASE. 1)Cornerstone Industries has a bond outstanding that has a 5% coupon rate, $1,000 face value, and
SHOW THE STEPS ON THE BUSSINS ANAYLIST CALCULATER PLEASE.
1)Cornerstone Industries has a bond outstanding that has a 5% coupon rate, $1,000 face value, and a market price of $897.34. If the bond matures in 5 years and interest is paid on a semi-annual basis, what is the yield to maturity on the bond? % format to 2 decimal places - no % sign
2)A corporate bond with a 6% coupon (paid semiannually) has a yield to maturity of 7.5%. The bond matures in 20 years but is callable at $1050 in ten years. The maturity value is par. Calculate the bonds yield to call. % terms w/o $ sign. (HINT: Find the current price and then solve for YTC.)
3)What is the current yield of a bond with a 6% coupon, four years until maturity, and a price of $1,253.84? In % terms to 2 decimal places without the % sign
4)What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? Answer in percentage terms to 2 decimals and without the % sign.
5)How much should you pay for a $1,000 bond with 10% coupon, annual payments, and five years to maturity if the interest rate is 12%?
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