Whatever, Inc., has a bond outstanding with a coupon rate of 5.68 percent and semiannual payments. The yield to maturity is 6.5 percent and the bond matures in 17 years. What is the market price if the bond has a par value of $1,000?
Information provided:
Par value= future value= $1,000
Time= 17 years*2= 34 semi-annual periods
Coupon rate= 5.68%/2= 2.84%
Coupon payment= 0.0284*1,000= $28.40
Yield to maturity= 6.5%/2= 3.25%
The price of the bond is calculated by computing the present value of the bond.
Enter the below in a financial calculator to compute the present value:
FV= 1,000
PMT= 28.40
N= 34
I/Y= 3.25
Press the CPT key and PV to calculate the present value of the bond.
The value obtained is 916.37.
Therefore, the market price of the bond is $916.37.
In case of any query, kindly comment on the solution.
Whatever, Inc., has a bond outstanding with a coupon rate of 5.68 percent and semiannual payments....
Whatever, Inc., has a bond outstanding with a coupon rate of 5.64 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 15 years. What is the market price if the bond has a par value of $1,000?
Whatever, Inc., has a bond outstanding with a coupon rate of 5.64 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 15 years. What is the market price if the bond has a par value of $1,000?
Whatever, Inc., has a bond outstanding with a coupon rate of 5.84 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 25 years. What is the market price if the bond has a par value of $1,000? $968.35 $967.08 $969.63 $986.20 $966.87
Whatever, Inc., has a bond outstanding with a coupon rate of 5.75 percent and semiannual payments. The yield to maturity is 4.7 percent and the bond matures in 22 years. What is the market price if the bond has a par value of $1,000? Multiple Choice $1,142.07 $1,144.77 $1,143.01 $1,146.28 $1,165.87
2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with a current yield of 6.64 percent is quoted at 96.171. What is the coupon rate of the bond:?4. Footsteps Co. has a bond outstanding with a coupon rate of 5.7 percent and...
A municipal bond has a coupon rate of 5.08 percent and a YTM of 5.39 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent pretax yield on a taxable bond? Multiple Choice 5.63% 3.77% 3.56%Whatever, Inc., has a bond outstanding with a coupon rate of 5.78 percent and semiannual payments. The yield to maturity is 6.5 percent and the bond matures in 22 years. What is the market price if the bond has a par value of...
1. A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with...
Kasey Corp. has a bond outstanding with a coupon rate of 5.98 percent and semiannual payments. The bond has a yield to maturity of 5.5 percent, a par value of $2,000, and matures in 18 years. What is the quoted price of the bond?
Kasey Corp. has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond has a yield to maturity of 6.3 percent, a par value of $2,000, and matures in 16 years. What is the quoted price of the bond?
Lincoln Park Co. has a bond outstanding with a coupon rate of 5.84 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 25 years. What is the market price if the bond has a par value of $2,000? Multiple Choice $1,972.41 $1,936.71 $1,939.26 $1,934.15 $1,933.73