True or False? if bond A and Bond B have the same face value of $1000, pay semi- annual coupons with the next coupon due in 6 months, were issued at the same time, and mature at the same time
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Both bonds have the same face value of $1000, pay semi-annual coupons, were issued at the same time, and mature at the same time. Show more…
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If the following bonds are identical except for coupon, what is the price of bond B? Bond A Face value $1,000 Semi-annual Coupon $38 Years to maturity 20 Price $1,098.96 Bond B Face value $1,000 Semi-annual Coupon $35 Years to maturity 20 price ? $901.04$960.44$925.31$1,033.35$1,079.63
Akash M.
you are considering 2 bonds that will be issued tomorrow. both are rated triple B(BBB) the lowest investment -grade rating, both mature in 20 years. both have a 10% coupon , neither can be called expect for sinking fund purposes, both are offered to you at their 1,000 par value. however bond SFhas a sinking fund while bond NSF does not. under the sinking fund ,the company must call or pay off 5% of the bonds at par each year. the yield curve at the time is upward sloping. the bnd's prices being equal are probably not in equilibrium as bond SF, which has the sinking fund, would generally be expected to have a higher yield tan bond NSF true or false
Nick J.
A $ 1,000 face value bond has a current market price of $ 935, an 8% coupon rate, and 10 years remaining until maturity. Interest payments are made semi annually. Before you do any calculation, decide whether the yield to maturity is above or below the coupon rate, why? a)what is the implied market determined semi annual discount rate on this bond? b)using your answer in part (a), what’s the bond nominal annual yield to maturity
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