What is bond price expected to be in one year

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Reference no: EM133666748

Problem

I. You bought a 11-year, 7.6% semi-annual coupon bond today and the current market rate of return is 3.56%. The bond is callable in 6 years with a $56 call premium. What price did you pay for your bond?

II. A 5.79% annual coupon, 19-year bond has a yield to maturity of 8.83%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?

III. A 4.9% annual coupon, 11-year bond has a yield to maturity of 5.03%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?

IV. A 7.45% annual coupon, 10-year bond has a yield to maturity of 6.79%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond?

V. A 4.67% annual coupon, 25-year bond has a yield to maturity of 3.76%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Current Yield for this bond?

When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed.

Reference no: EM133666748

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