10
Finance Questions
ABC's bonds have a 9.5 percent coupon and pay interest semi-annually.
Currently, the bonds are quoted at 106.315 percent of par value. The bonds
mature in 8 years. What is the yield to maturity?
ABC's 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)?
You paid $1,119 for a corporate bond that has a 5.16% coupon rate. What
is the current yield? Hint: if nothing is mentioned, then assume par value =
$1,000
The 13.7 percent coupon bonds of the Peterson Co. are selling for
$819.98. The bonds mature in 5 years and pay interest semi-annually. These
bonds have current yield of _____ percent.
Stealers Wheel Software has 8.53% coupon bonds on the market with nine
years to maturity. The bonds make semi-annual payments and currently sell for
114.24% of par. What is the current yield?
BCD’s $1,000 par value bonds currently sell for $798.40. The coupon rate
is 10%, paid semi- annually. If the bonds have 5 years to maturity, what is the
yield to maturity?
A firm's bonds have maturity of 10 years with a $1000 face value, an 8%
semi-annual coupon, are callable in 5 years, at $1,050, and currently sells at
a price of $1,100. What is the yield to call (YTC)?
ABC Corp. issued 15-year bonds 2 years ago at a coupon rate of 10.6%.
The bonds make semi-annual payments. If these bonds currently sell for 97% of
par value, what is the YTM?
ABC wants to issue 8-year, zero coupon bonds that yield 11.64 percent.
What price should they charge for these bonds if they have a par value of
$1,000? That is, solve for PV. Assume annual compounding.Hint: zero coupon
bonds means PMT = 0
ABC Inc., has $1,000 face value bonds outstanding. These bonds mature in
3 years, and have a 6.5 percent coupon. The current price is quoted at 98.59
percent of par value. Assume semi-annual payments. What is the yield to
maturity
TUTORIAL PREVIEW
ABC's bonds have a 9.5 percent coupon and pay interest semi-annually.
Currently, the bonds are quoted at 106.315 percent of par value. The bonds
mature in 8 years. What is the yield to maturity?
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Nper =
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5
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PMT = 1000x9.5% x 1/2=
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47.5
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PV = 1,000 x 106.315% =
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-1061.5
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FV =
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1,000
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Rate =?
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File name: ABCs bonds.xls File
type: .xls PRICE: $15
