Questions from Business Mathematics

Q: A bond with a face value of $1000 and 15 years

A bond with a face value of $1000 and 15 years remaining until maturity pays a coupon rate of 10%. Calculate its yield to maturity if it is priced at $1250.

Q: Manuel bought a $100,000 bond with a 4%

Manuel bought a $100,000 bond with a 4% coupon for $92,300 when it had five years remaining to maturity. What was the prevailing market rate at the time Manuel purchased the bond?

Q: Pina bought a 6% coupon, $20,000 face

Pina bought a 6% coupon, $20,000 face value corporate bond for $21,000 when it had 10 years remaining until maturity. What are her nominal and effective yields to maturity on the bond?

Q: Bonds A and C both have a face value of $1000

Bonds A and C both have a face value of $1000 and pay a coupon rate of 6.5%. They have 5 and 20 years, respectively, remaining until maturity. Calculate the yield to maturity of each bond if it is pur...

Q: Evaluate values of the variables. Calculate the result accurate to the

Evaluate values of the variables. Calculate the result accurate to the nearest cent. P(1 + rt) for P = $770, r = 0.013, t = 223 365

Q: Bonds D and E both have a face value of $1000

Bonds D and E both have a face value of $1000 and pay a coupon rate of 7%. They have 5 and 20 years, respectively, remaining until maturity. Calculate the yield to maturity of each bond if it is purch...

Q: A $5000 Government of Canada bond carrying a 6% coupon

A $5000 Government of Canada bond carrying a 6% coupon is currently priced to yield 6% compounded semiannually until maturity. If the bond price abruptly rises by $100, what is the change in the yield...

Q: A $10,000 Nova Chemicals Corp. bond carrying an

A $10,000 Nova Chemicals Corp. bond carrying an 8% coupon is currently priced to yield 7% compounded semiannually until maturity. If the bond price abruptly falls by $250, what is the change in the yi...

Q: In the spring of 1992 it became apparent that Olympia & York

In the spring of 1992 it became apparent that Olympia & York (O&Y) would have serious difficulty in servicing its debt. Because of this risk, investors were heavily discounting O&Y’s bond issues. On A...

Q: Calculate the purchase price (flat) of $1000 face value

Calculate the purchase price (flat) of $1000 face value bonds. Issue date = June 1, 2010 Maturity date = June 1, 2030 Purchase date = June 15, 2019 Coupon rate = 8.0 Market rate = 5.25