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    Yield to Maturity / Yield to Call

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    10. BEA Industries has just issued a callable (at 102) ten-year, 8% coupon bond with semi-annual coupon payments. The bond can be called at 102 in three years or anytime thereafter on a coupon payment date. It has a current price of 99. What is the Yield to Maturity (YTM) on this bond? (Points: 2)
    8.65%
    8.15%

    8.98%

    8.25%
    8.75%

    11. BEA Industries has just issued a callable (at 102) ten-year, 8% coupon bond with semi-annual coupon payments. The bond can be called at 102 in three years or anytime thereafter on a coupon payment date. It has a current price of 99. What is the Yield to Call (YTC) on this bond? (Points: 2)
    8.86%
    8.35%
    8.87%
    8.98%
    8.78%

    12. Citi Enterprises has just issued a callable (at par) fifteen-year, 7% coupon bond with semi-annual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. It has a current price of 101. What is the Yield to Maturity (YTM) on this bond? (Points: 2)
    6.98%
    6.36%
    6.89%
    8.98%
    6.78%

    13. Citi Enterprises has just issued a callable (at par) fifteen-year, 7% coupon bond with semi-annual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. It has a current price of 101. What is the Yield to Call (YTC) on this bond? (Points: 2)
    6.86%
    6.76%
    6.87%
    6.67%
    6.47%

    One example is attached for you to get the idea.

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    Solution Summary

    The solution explains how to determine the yield to maturity and yield to call.

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