solution
solution.
If a corporate bond that pays a $30 semiannual coupon payment has an annual yield to maturity of 8%, a par value of $1,000, and 10 years to maturity, what is the value of the bond today?
21. If the coupon rate is less than the yield-to-maturity for a bond, then the bond will be a:
a. Discount bond
b. Par value bond
c. Premium bond
22. Holding all else equal, for a premium bond, as the maturity date approaches, the value of the bond
a. decreases to the par value.
b. stays the same.
C. Increases to the par value.
23. A bond for Telehut is a callable bond that is currently selling for $1,020. It pays a semiannual coupon based on a 6% annual coupon rate and has 10 years to maturity, The par value for the bond is $1,000. It is callable in three years at call price of $1,060. What is the yield-to-maturity for the bond? What is the yield-to-call for the bond?
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
