1-P10-Assume you just paid $1 comma 226 for a convertible bond that carries a(n) 8.54 % coupon and has 15 years to maturity. The bond can be converted into 24 shares of stock, which are now trading at $50 a share. Find the bond investment value of this issue, given that comparable nonconvertible bonds are currently selling to yield 10.85 %.
The bond investment value of this issue is ______$
2- Using annual compounding, find the yield-to-maturity for each of the following bonds.
a. A(n) 11 %, 24 -year bond priced at $922.16 .
b. A(n) 17%, 11-year bond priced at $1,163.58
c. A(n) 7.5 %, 19-year bond priced at $618.41
Now assume that each of the above three bonds is callable as follows: Bond a is callable in 7 years at a call price of $1,085; bond b is callable in 5years at $1,350 ; and bond c is callable in 4 years at $1,030
Use annual compounding to find the yield-to-call for each bond.
3-A 25 -year, zero-coupon bond was recently being quoted at 17.719 % of par. Find the current yield and the promised yield of this issue, given that the bond has a par value of $1 000. Then, using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 10.28 %. The current yield on this bond is __%. (Round to the nearest whole percent.)
The promised yield of this issue is ____%. (Round to two decimal places.)
Using semiannual compounding, the amount an investor would have to pay for this bond if it were priced to yield
5.14 % is ________$ (Round to the nearest cent.)