A 6.8 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?
What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.9 percent for an investor in the 33 percent marginal tax bracket? (Round your answer to 2 decimal places.)
What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 3.4 percent for an investor in the 28 percent marginal tax bracket? (Round your answer to 2 decimal places.)
A 8.30 percent coupon bond with 13 years left to maturity is priced to offer a 9.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 8.6 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A 6.25 percent coupon bond with 19 years left to maturity is offered for sale at $1,095.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
A 6.30 percent coupon bond with 26 years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $1,085.25. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
A 6.05 percent coupon bond with 18 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,085.50. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
A 3.60 percent coupon municipal bond has 14 years left to maturity and has a price quote of 95.45. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.)
Compute the bond’s current yield. (Round your answer to 2 decimal places.)
Current yield %
Compute the yield to maturity. (Round your answer to 2 decimal places.)
Yield to maturity %
Compute the taxable equivalent yield (for an investor in the 36 percent marginal tax bracket). (Round your answer to 2 decimal places.)
Equivalent taxable yield %
Compute the yield to call. (Round your answer to 2 decimal places.)
Yield to call %