Annual yield to maturity

    • [DOC File]Solutions to Questions and Problems

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      6. a. Current yield = annual coupon/price = $80/1050 = .0762 = 7.62%. b. YTM = 7.2789%. On the calculator, enter PV = (-)1050, FV = 1000, n = 10, PMT = 80, compute i. 7. When the bond is selling at par, its yield to maturity equals its coupon rate. This firm’s bonds are selling at a yield to maturity of 9.25%. So the coupon rate on the new ...

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    • [DOC File]Tuesday February 27, 2007

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      Yield to maturity and bond value--annual bond Answer: d Diff: E A 20-year bond with a par value of $1,000 has a 9 percent annual coupon. The bond currently sells for $925.

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    • [DOC File]Bond Features

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      May 30, 2007 · Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds. have an 8 percent annual coupon rate and were issued 1 year ago at their par value. of $1,000, but due to changes in interest rates, the bond's market price has fallen to. $901.40. The capital gains yield last year was _9.86 percent. a. What is the yield to ...

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    • [DOC File]Chapter 1, Section 4

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      What is the current yield? Solution: The current price of the bond is computed as follows: PMT 50; N 10; FV 1000; I 6. Compute PV; PV 926.40. The current yield 50/926.40 5.4%. 11. A $1,000 par bond with an annual coupon has only 1 year until maturity. Its current yield is 6.713% and its yield to maturity …

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    • [DOC File]Soln Ch 13 Bond prices

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      Effective annual yield to maturity = (1.0426)2 – 1 = .0870 = 8.70%. b. Since the bond is selling at par, the yield to maturity on a semi-annual basis is the same as the semi-annual coupon, 4%. The bond equivalent yield to maturity is 8%. Effective annual yield to maturity = (1.04)2 – 1 = .0816 = 8.16%

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    • [DOC File]Current yield, capital gains yield, and yield to maturity

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      What is their yield to maturity and their current yield? YTM: N = 8, PV = -875, PMT = 80, FV = 1000, I/Y = 10.3751. Current yield = Annual Coupon/PV = 80/875 = 0.0914 = 9.14%. 5. The Henderson Company’s Bonds currently sell for $1,350. They pay a $110 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,220.

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    • [DOC File]Soln Ch 13 Bond prices - Home - York University

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      Current yield: a bond’s annual coupon divided by the bond price. Yield to maturity. The market interest rate for bonds with similar features. This is the discount rate that equates a bond’s price with the present value of is future cash flows. 3. The yield to maturity (or …

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    • Yield to Maturity (YTM) Definition

      Effective annual yield to maturity = (1.0376)2 – 1 = 0.0766 = 7.66% Since the bond payments are now made annually instead of semi-annually, the bond equivalent yield to maturity is the same as the effective annual yield to maturity.

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    • [DOC File]CHAPTER 7

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      The yield to maturity is the required rate of return on a bond expressed as a nominal annual interest rate. For noncallable bonds, the yield to maturity and required rate of return are interchangeable terms.

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