Question.4326 - Ch. 10 Written AssignmentDetailsResolve the following problems (2, 3, 6, 9 and 11 from the book chapter). Show the calculations.2 . A $1,000 Omega Corp. bond has an 8% coupon rate that is paid semiannually. The bond matures in three years. If the current price of the bond is $1,125, what is the yield to maturity?3 . You are considering buying a bond that is currently priced at $830, has a face value of $1,000, and matures in seven years. If interest is paid semiannually and the bond has a yield to maturity of 6%, what is the bond's annual coupon rate?6 . You are considering adding a $1,000, 25-year bond to your portfolio. It has a coupon rate of 8%, which is paid annually, and your required return is 10%. What is the current price of the investment?9 . Three years ago, Petty Partners Inc. issued 15-year, $1,000 bonds that are currently priced at $911.37. If the prevailing rate of return on similar investments is 5%, what is the coupon rate on Petty Partners bonds, and what is the annual interest payment?11 . A $1,000 bond that matures in eight years, has quarterly coupon payments of $25, and is currently priced at $962.00 will have a yield to maturity of ________.
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Ch xxxxxxx AssignmentQuincy xxxxxxxxxx - xxxxxxxxxx of xxxxxxx May xx Written xxxxxxxxxxxxxx The xxxxxxxxxxxx are xxxx performed xx the xxxxxxxxxxxx Excel xxxx Problem xx PMT x r xxxxx to xxxxxxxx annual x NPER xx Using xxxxxxx RATE xxxxxxxx the xxx can xx calculated xx follows xxxx - x So xxx yield xx maturity xx the xxxx is xxxxxxx PV xx YTM xxxx yearsUsing xxxxxxx PMT xxxxxxxx as xxxxxxx -PMT x Annual xxxxxx rate xxxxxxx FV xxxx Coupon xxxx YTM xxxxx Excel's xx function xx follows xx - x The xxxxxxx price xx the xxxxxxxxxx Problem xx FV xxx NPER xxxxx Excel's xxx function xx follows xxxx - xxxxxx coupon xxxxxxx Problem xx PMT xxxxxxxxx NPER xx Using xxxxxxx RATE xxxxxxxx as xxxxxxx RATE x - xxxxx to xxxxxxxxMore Articles From Finance
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