Purchase Solution

Calculating Bond Maturity

Not what you're looking for?

Ask Custom Question

An investor is considering a bond that currently sells at a discount ($953) to the face value of $1,000. The coupon rate is 9.25% paid semiannually. If there are 15 years left on the bond what is the yield to maturity?

Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Production and cost theory

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

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Zero-coupon bonds

    First scenario (calculating yield to maturity) $1,000 = $300 * (1 + YTM)^30 YTM = (1000/300)^(1/30) - 1 = 0.0409 = 4.09% Yield to maturity = 4.09% Second scenario (calculating maturity) $1,000 = $300 * (1 + 0.08)^T 1000/300 = 1.08^T ln(1000/300

  • Calculating Yield to Maturity and Current Yield

    180365 Calculating Yield to Maturity and Current Yield 4. Bond Pricing. A 6-year Circular File bond pays interest of $80 annually and sells for $950. What are its coupon rate, current yield, and yield to maturity? 5. Bond Pricing.

  • Calculate Yield to Maturity of a Bond

    112813 Calculate Yield to Maturity of a Bond A thirty year zero bond has a par value of $1000 and sells for $356.27 on the open market. The YTM of this bond is?

  • Cash flows - Calculating the present value of bonds

    What impact does the number of years until maturity have on the value of a bond? (include references) Example: a 5 year to maturity bond has a coupon of 7% and is trading at par.

  • Present Value of Bonds

    What impact does the number of years until maturity have on the value of a bond? What are the cash flows associated with calculating the present value of bonds? What happens to the value of bonds when interest rates increase?

  • Compute the Promised Yield to Maturity for a callable bond

    284934 Compute the Promised Yield to Maturity for a callable bond Assume you purchassed an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at $1012.50 when it has 12 years remaining until maturity.

  • Calculating Bond Price and Yield to Maturity

    656717 Calculating Bond Price and Yield to Maturity Siddhartha Bank has a bond currently trading at NEPSE @ Rs. 1200 per bond, the bond has remaining maturity period of 6 years, the bond pays 10% coupon rate on face value.

  • Calculating Problems In Excel

    Bond Pricing. If Circular File (see question 4) wants to issue a new 6-year bond at face value, what coupon rate must the bond offer? 6. Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100. a.

  • Bond value

    33037 Bond value The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year.

  • Finance: Bond valuation.

    The problem set deals with calculating the Yield to maturity, total return, current yield, and capital gains yield from selected information.

View More Related Solutions