Bond Price with Face Value, Current Yield and Coupon Rate

Related BrainMass Solutions

• Calculate: Bond Yields and 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? 1. A bond with face value $1,000 has a current yield of 7 percent and a coupon rate of 8 percent.

• Description of Bond valuation

  Suppose a seven year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.75% a. Is this bond currently trading at a discount, a par, or at a premium? Explain. b.

• Bond Questions

  166682 A bond with a face value of $1000 has a current yield of 7% and a coupon rate of 8%. What is the bond's price? 9. A bond with a face value of $1000 has a current yield of 7% and a coupon rate of 8%. What is the bond's price? 10.

• Calculating the Bond Price, YTM and YTC

  Problem 2 Suppose a corporation's bonds have a current market price of $1400. The bonds have a 13% annual coupon rate, a $1000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 107% of face value.

• Difference in Yield Types

  For example, a bond with a $1,000 face value and a coup on 6% purchased at $900 has a currient yield of 6.7% (60/900). When the current yield of a bond rises, its market price declines.

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• Bond Valuation- Yield to maturity and yield to call

  and bond price As interest rate increases, bond price falls When interest rate < Coupon rate, bond price > par value interest rate = Coupon rate, bond price = par value interest rate > Coupon rate, bond price < par value "f.

• Yield to maturity for a bond

  435244 Time value of money: Calculate the yield to maturity for a bond A corporate bond with a face value of $1000 matures in 4 years and had an 8% coupon paid at the end of each year. The current price of the bond is $932.

• Multiple choice questions on bonds

  You just purchased a 15-year bond with an 11 percent annual coupon. The bond has a face value of $1,000 and a current yield of 10 percent.