As per rules I am answering the first 4 subparts of the question
1: Using financial calculator Input: FV= 1000; N=15, PMT=9%*1000=90
I/Y=9
Solve for PV as 1000
Price of the bond = $1000
2: Using financial calculator Input: FV= 1000; N=15, PMT=9%*1000=90
I/Y=13
Solve for PV as -741.50
Price of the bond = $741.50
3: Using financial calculator Input: FV= 1000; N=15, PMT=9%*1000=90
I/Y=6
Solve for PV as 1291.37
Price of the bond = $1291.37
4: greater than
Since the bond is offering a return greater than the market rate, the bond is in greater demand and its price will be at premium.
Bond value and changing required returns and has a bond issue outstanding that will mature to...
Bond value and changing required returns Midland Utilities has a bond issue outstanding that will mature to its $1.000 par value in 13 years. The bond has a coupon interest rate of 13% and pays interest annually a. Find the value of the bond if the required retumis (1) 13%. (2) 17%, and (3) 10% b. Use your finding in part a and the graph here to discuss the relationship between the coupon interest rate on a bond and the...
Bond value and changing required returns Midland Utlities has a bond issue outstanding that will mature to its $1,000 par value in 15 years. The bond has a coupon interest rate of 14% and pays interest annually a. Find the value of the bond if the required return is (1) 14%, (2) 1896, and (3) 1196. b. Use your finding in part a and the graph here, , to discuss the relationship between the coupon interest rate on a bond...
Midland Utilities
has a bond issue outstanding that will mature to its
$1,000 par value in
16 years. The
bond has a coupon interest rate of 13% and pays interest
annually.
a.Find the value of the
bond if the required return is
(1)13%, (2)
17%, and (3) 10%.
b.Use your finding in part
a and the graph
here
to discuss the
relationship between the coupon interest rate on a bond and the
required return and the market value of the...
Basic bond valuation Complex Systems has an outstanding issue of $1.000 por bonds with a 15% coupon interest rate The pay wrest l y and has 14 years remaning to its maturity date. a. bonds of similsk are curently coming of rum of 13 how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the wateon mankbonds is below the coupon state on the Complex Systems bond c. I the required return were...
Basic bond valuation Complex Systems has an outstanding issue of$1,000 par value bonds with a 8% coupon interest rate. The issue pays interest annually and has 10 years remaining to its maturity date a. If bonds of similar risk are currently earning a rate of return of 7%, how much should the Complex Systems bond sel for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems...
(Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 11 percent, and the investor's required rate of return is 14 percent The value of the bond is S828.27 (Round to the nearest cent. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1.000 face value. The annual coupon interest rate is 5 percent, and the...
Graph/Chart 1 1,500 1,400 1,200- 1,100- 1,000 E 900- 800- 700 60 500 6 7 89 10 11 12 13 Required return (%) PrintDone Bond value and changing required returns Midland Utilities has a bond issue outstanding that will mature to its $1,000 par value in 16 years. The bond has a coupon interest rate of 9% and pays interest annually. a. Find the value of the bond if the required return is (1) 996, (2) 13%, and (3) 6%....
(Bond valuation) Calculate the value of a bond that will mature in 19 years and has a $1,000 face value. The annual coupon interest rate is 12 percent, and the investor's required rate of return is 9 percent. The value of the bond is $ . (Round to the nearest cent.)
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a16% coupon interest rate. The issue pays interest annuallyand has 16years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 13%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond. c. If the...
Bond valuation-Semiannual interest Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 13% (6.5% paid semiannually) if the required return on similar-risk bonds is 13% annual interest (6.5% paid semiannually). The present value of the bond is SU(Round to the nearest cent.)