Joel Barber purchased a $1,000 bond for $985. The coupon rate of interest is 8.5 percent, and the bond matures in 10 years. What is Joel's current yield on this bond? a. 8.73 percent b. 8.63 percent c. 9.85 percent d. 8.50 percent
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- The saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $875. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? A. The yield to maturity on the saleemi bonds is Round to two decimal placesthe Saleemi Corporation's $1,000 bonds pay 11 percent interest annually and have 12 years until maturity. You can purchase the bond for $895. a. what is the yield to maturity on this bond? b. should you purchase the bond if the yield to maturity on a comparable - risk bond is 14 percent?Vincent purchased a $3,500 bond that was paying a 5.50% coupon rate and had 4 more years to mature. The yield at the time of purchase was 4.20% compounded semi-annually. a. How much did Vincent pay for the bond? Round to the nearest cent b. What was the amount of premium or discount on the bond?
- The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $1,095. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 4 percent? ___________________________________________________________________________a. The yield to maturity on the Saleemi bond is ____ %. (Round to two decimal places.)Logan purchased a $1,000 par value bond. The amount of each annual interest payment is $82.50. If Logan paid a premium of $100.31 for the bond, what is the current yield? Group of answer choices 8.25% 10.03% 9.17% 7.50%John bought a 10-year bond for $925. The bond pays a coupon of 5 percent per year and payments are made semiannually. What is the Effective Annual Yield (EAY) on this bond? 10.67% 9.66% O 6.10% 6.30% 3.10%
- A $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Gregory purchased this bond when there were 9 years left to maturity and when the market interest rate was 6.00% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 5.50% compounded semi-annually. a. Calculate the purchase price of the bond. b. Calculate the amount that Gregory received when he sold the bondon Assume that you purchase a 30-year stripped bond with a $100,000 face value. The current bond price is $9,937.73 and the yield is 8%. Calculate the interest revenue during the first year of holding the bond. Calculate amounts to nearest dollar, no $. Answer:The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years until maturity. You can purchase the bond for $935. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 9 percent ? A. The yield to maturity on the saleemi bonds is Round to two decimal places
