Teva Pharmaceutical has bonds outstanding what is their Yield to maturity? ha.?-

Question

Teva Pharmaceutical has bonds outstanding what is their Yield to maturity? ha.?-' Pr ) te L that mature in 9 years and pay a 315% coupon 913 N- I 2. AT&T; wants to issue bonds with a 5 15% coupon if they cangetS1008 85 and a 509% yield. how many years will it be until the bond matures ..; .96 PH1-65 76 3. NBCUniversal Media has a bond outstanding that matures 2257 years. " its market price is 38143and it yields 3852 what es the bond's coupon rate? N- 95.14 GEplans to issue anote withs2Smieterty that pays a 2 5%eova on if the market y eld is Z035% wpat is the market price? 4 1-0

Explanation / Answer

1) Face value $1,000.00 Coupon Rate 3.15% Semiannual Coupon Payment = $1000 x 3.15%/2 $15.75 Period = 9 years x 2 18 Present Value (PV) $901.07 Semiannual YTM = Rate(18,15.75,-901.07,1000) 2.25% Annual YTM = 2.25% x 2 4.50% YTM is calculated using Rate Function in excel 2) Face value $1,000.00 Coupon Rate 5.15% Semiannual Coupon Payment = $1000 x 5.15%/2 $25.75 YTM = = 5.09%/2 2.54% Present Value (PV) $1,008.85 Period = NPER(2.54%,25.75,-1008.85,1000) 55.285077668 Period in years = 55.29/2 27.64 years Period is calculated using Nper Function in excel 3) Face value $1,000.00 YTM = = 3.85%/2 1.93% Present Value (PV) $1,381.43 Period = 22.57 x 2 45.14 Years Coupon Payment Semiannual $31.97 Coupon Payment annual = $31.97x 2 $63.95 Coupon Rate = $63.95/ $1000 6.39% 4) Face value $1,000.00 Coupon Rate 2.50% Semiannual Coupon Payment = $1000 x 2.50%/2 $12.50 YTM = = 2.035%/2 1.02% Nper = 2.5 year x 2 5 Price = PV(1.02%,5,-12.50,-1000) $1,011.28 Price is calculated using PV function in excel.

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