Question.4394 - 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 xxxxx s xxxx function xxx YTM xxx be xxxxxxxxxx as xxxxxxx RATE x - xx the xxxxx to xxxxxxxx of xxx bond xx Problem xx FV xxx NPER xxxxxxxxxx Excel x PMT xxxxxxxx as xxxxxxx -PMT x Annual xxxxxx rate xxxxxxx FV xxxx Coupon xxxx YTM xxxxx Excel x PV xxxxxxxx as xxxxxxx PV x - xxx current xxxxx of xxx investment xxxxxxx PV xx YTM xxxx Using xxxxx s xxx function xx follows xxxx - xxxxxx coupon xxxxxxx Problem xx PMT xxxxxxxxx NPER xx Using xxxxx s xxxx function xx follows xxxx - x Yield xx MaturityMore Articles From FIN 320 91 - Principles of Finance
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