What is the yield to maturity of a corporate bond with a 3-year maturity, 5 percent coupon(semiannual payments),and 1000 face value if the bond sold for 978.3?Payments comprise an ordinary annuity of 25 every 6 months for 3 years plus a25252525251,025 = + + + ? ?= 978.30 Pb23456(1...
The investors expect the issuer to pay back the face value of the bond on the maturity date, as well as regular interest payments. The process of bond valuation is applied to estimate the current price of a bond and the variables required are the face value, coupon rate, yield to maturity...
The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. 相关知识点: 试题来源: 解析 C 题目需要计算3年期零息债券的到期收益率(YTM)。根据提供的Rationale:[(1.05)(1.07)(1.09)]^(1/3) - 1,分析如下: 1. 题目隐含假设三年的年化即期利率...
Maturity Price of the BondThe maturity price of a bond gets affected by the duration of the bond. If the bond's holding period is for the long term, it is more probable that the bond value will get affected due to variation ...
Answer to: What is the approximate yield to maturity for a 11-year bond that pays 12 interest on a $1,000 face value annually if the bond sells for...
Bond Input and Assumptions Face amount on bond($) Number of years to maturity(1 to 40) Coupon rate(-12% to 12%) Today's market rate(-12% to 12%) Desired yield to maturity(-12% to 12%) Calculate This information may help you analyze your financial needs. It is based on information...
While the interest payments are a constant amount, the market interest rate for the bond is likely to be continually changing. A change in the market interest rate will cause the present value of the interest payments (and the present value of the maturity amount) to change in the opposite ...
A The duration of a floating rate bond is equal to the time until the next coupon payment takes place. As the coupon rate changes semi-annually with the level of the interest rate, a floating rate bond has the same duration as a pure discount bond with time to maturity equal to the ti...
The effective interest rate of a bond is usually the market interest rate and the bond’s yield-to-maturity (as opposed to the interest rated stated on the face of the bond). The effective interest rate of a bond is the rate that will discount both the bond’s future interest payments...
Maturity dateGenerally, this is when you will receive repayment of what you loaned an issuer (assuming the bond doesn't have any call or redemption features). If you want or need to sell a bond before its maturity date, you may be able to sell it to someone else, though there is no...