Finance

posted by .

Dahler Corporation has just issued a bond with a maturity of 20 years, coupon rate of 10.25%, and a market price of $1330.25. Dahler makes semiannual coupon payments.

a) what is the YTM expressed as a quoted rate based on semi-annual compounding? And what is the effective annual YTM on this bond?

b)What is the bond's expected price two years from now? What is its capital gains yield for year 2? What is its current yield at the beginning of year 2? What is the expected total return for year 2?

c) What would happen to the price of the bond over time, as the bond gets closer to maturity? (Again, assuming no change in interest rates)

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    The Carter Company's bond mature in 10 years have a par value of 1,000 and an annual coupon payment of $80. The market interest rate for the bond is 9%. What is the price of these bonds The coupon rate on the bond, (interest/principal …
  2. FINANCE

    Bond valuation Nungesser Corporation’s outstanding bonds have a $1,000 par value, a 9 percent semiannual coupon, 8 years to maturity, and an 8.5 percent YTM. What is the bond’s price?
  3. Finance

    Bond X is a premium bond making annual payments. The bond pays an 8 percent coupon, has a YTM of 6 percent, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 6 percent coupon, has a YTM …
  4. Finance

    A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.
  5. Finance

    A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.
  6. Finance

    A corporation has bonds on the market with 13.5 years to maturity, a YTM of 7.6 percent, and a current price of $1,175. The bonds make semiannual payments. What must the coupon rate be on these bonds?
  7. finance

    Suppose Delta Company issued bonds with a 15-year maturity, a Rs. 1,000 par value, a 12 percent coupon rate, and semiannual interest payments. If actual price of the bond in the market is Rs 900, compute yield to maturity, current …
  8. finance

    1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000. The market interest rate (r) is 6%, based on semiannual compounding. What is the bond’s price?
  9. Math

    Suppose you have a $1,000 face value bond with 12 years to maturity, a coupon rate of 6% and a yield to maturity of 8%. If the bond makes semiannual payments, what is it's price today?
  10. Advanced Finance

    6. (TCO F) Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. What is the implied annual interest rate inherent in the futures contract?

More Similar Questions