Fin 3403 bond basics

A zero-coupon bond with a par value of $1,000.00 has a current market value of $509.00. If the bond has 8 years to maturtiy, what is its current yield?

0

A perpetual bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 5.10% and a current price of $965.00. What is its current yield?

5.10

A perpetual bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 6.50% and a current price of $1,080.00. What is its current yield?

6.50

A perpetual bond with a par value of $1,000.00 and a coupon rate of 7.50% has a current market value of $1,015.00. What is its yield to maturity?

75.00/1015=7.39%

What is the price of a perpetual bond with a par value of $1,000.00 and a coupon rate of 7.75% (semiannual coupon)? The bond has a nominal yield to maturity of 6.60%.

Coupon rate 7.75% convert to 77.50 77.50/6.60(yield of maturity) $1174

A zero-coupon bond with a par value of $1,000.00 has a current market value of $572.00. If the bond has 8 years to maturity, what is its current yield?

FV=1000 PV=-572 N=8 I/YR=7.23(Ans0)

A zero-coupon bond with a par value of $1,000.00 has a current market value of $576.00. If the bond has 6 years to maturity, what is its yield to maturity?

FV=1000 PV=-576 N=6 I/YR=9.63

A bond with a par value of $1,000.00 and a coupon rate of 9.75% (semiannual coupon) has a current market value of $970.00. What is its nominal yield to maturity? The bond has 5 years to maturity.

FV=1000 PV=-970 N=10(5x2 semiannual) PMT=48.75(97.50/2) I/YR=10.54

A bond with a par value of $1,000.00 and an annual coupon rate of 9.50% has a yield to maturity of 6.30%. If the bond has 15 years to maturity, what is its current yield?

Find the PV FV=1000 PMT=95 N=15 I/YR=6.3 PV=-1304.79 95/1304.79=7.28