Finance MBA assistance for bonds

Jul 15th, 2015
Business & Finance
Price: $10 USD

Question description


A bond for IBM maturing in 12 years and 3 months has quarterly coupon payments of $11.50.  If the current interest rate on this bond is 5.5% (yield to maturity), which of the following is true?


On a credit card that currently has a $7,500 balance and an interest rate of 14.99% (compounded monthly, charged on the outstanding balance at the end of each month), how long will it take to pay off the card if I make payments of $150 each month?


For a credit card with a balance of $7,500 and an interest rate of 14.99% (monthly compounding, charged on the outstanding balance each month), how much total interest will you pay over the repayment period if your payment each month is 150?


If you have a credit card with a balance of $7,500 and an interest rate of 14.99% (compounded monthly), what is the payoff amount (i.e. remaining principal amount) after 40 months of $150 payments?


What is the effective interest rate charged by Visa if the nominal rate is 21.99% and it is compounded daily.  Don't use symbols and put your answer as a number with 2 decimal places - i.e. if your answer is 17.55%, enter 17.55 in the space provided, don't put .1755.


What is the coupon rate for a bond that has semi-annual coupon payments, a yield to maturity of 6.549% ,  is priced at $899.67 and has 6 years to maturity?


What is the risk-free rate if a corporate bond yielding 6.9% has a Default Risk Premium of 2.4%, a Maturity Risk Premium of 3.1% and a Liquidity Premium of 0.2%?  Put your answer as a number with 2 decimals and no % symbol - i.e. 5.95% should be entered as 5.95, not .0595.


Calculate the real interest rate if the nominal rate is 9.5% and the inflation rate is 3.9%.


Calculate the percentage change in the price over the course of a year for a bond with semi-annual coupon payments based on the following information:
Initial YTM = 6.875%
Coupon Rate = 4.5%
Time to Maturity = 16 years

One year later:
YTM = 8.85%


 What is the yield on a zero-coupon bond that is priced at 486.55 if there are 20.5 years to maturity.  Assume semi-annual compounding.  For your answer, use a number with 2 decimal places and no % symbol - i.e. if your answer is 8.95%, enter 8.95, not .0895 as your answer.

Tutor Answer

(Top Tutor) Daniel C.
School: UCLA

Studypool has helped 1,244,100 students

Review from our student for this Answer

Jul 17th, 2015
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1820 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors