Purchase Solution

Bond questions

Not what you're looking for?

Ask Custom Question

The Timberlake-Jackson Wardrobe Co. has 10 percent coupon bonds on the market with 20 years left to maturity. The bonds make annual payments. If the bond currently sells for $996.6, the YTM is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Merton Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $1,056. At this price, the bonds yield 6.4 percent. The coupon rate on the Merton's bonds is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Brittany Co. issued 14-year bonds one year ago at a coupon rate of 9.25 percent. The bonds make semiannual payments. If the YTM on these bonds is 8 percent, the current bond price is $ . (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Night Hawk Co. issued 16-year bonds 2 years ago at a coupon rate of 7.5 percent. The bonds make semiannual payments. If these bonds currently sell for 96 percent of par value, the YTM is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Young Corporation has bonds on the market with 20 years to maturity, a YTM of 8 percent, and a current price of $958. The bonds make semiannual payments. The coupon rate on these bonds must be percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)
If Treasury bills are currently paying 5 percent and the inflation rate is 2.5 percent, the approximate real rate of interest is percent. The exact real rate is percent. (Input answers as percents rounded to 2 decimal places, without the percent sign.)

Locate the Treasury bond in Figure 6.3 maturing in May 2016.

This is a bond. Its current yield is percent, and yield to maturity is percent. The bid-ask spread is . (Input answers as percents rounded to 2 decimal places, without the percent sign.)

Rate:9 Maturity Mo/Yr:Nov18 Bid:135:19 Asked:135:20 Chg: -5 Asked Yield:4.97
(here is the info in the Figure6.3)

Purchase this Solution

Solution Summary

The solution explains some bond questions relating to calculation of YTM percent, coupon rate, current bond price and treasury bond yield

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.