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 A European bond has a par value of 1000 Euros, a coupon rate of 3.9 percent and a yield to matur

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The Question

 A European bond has a par value of 1000 Euros, a coupon rate of 3.9 percent and a yield to maturity of 3.2 percent. The bond has 19 years to maturity. Coupons are made annually. What is the value of the bond?

ABC Inc. has 5.0 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 110 percent of par. What is the YTM?

Thank you for your help if you can

Par value

 

Coupon rate

 

YTM

 

Years to maturity

 

Bond value ? 1,000.00

 

3.90%

 

3.20%

 

19

 

? 1,098.51 Coupon rate

 

Years to maturity

 

Par value

 

Price

 

YTM 5%

 

9

 

100%

 

110%

 

3.68%

 

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DATE ANSWERED

Oct 14, 2020

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