A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually....

Question

Question

A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.2%.

What is the new price of the bond?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

New price of the bond is calculated using the PV function:-

=PV(rate,nper,pmt,fv)

=PV(8.2%/2,8*2,7%/2*1000,1000)

=930.60

Add a comment

Answer 2

Similar Homework Help Questions

A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually. The YTM at the beginning of the...

A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.4%. What is the new price of the bond? A. $1,287 B. $1,104 C. $920 D. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.6% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9.2%. What is the new price of the bond? A. $ 855 B. $ 1,026 C. $ 1,197 D. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8%. What is the new price of the bond? O A. $1,278 O B. $913 OC. $1,095 OD. $1,000

A company issues a ten-year bond at par with a coupon rate of 6.9% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.9% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.9%. What is the new price of the bond? O A. $1,242 В. $1,065 С. $887 D. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.2% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.2% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.5%. What is the new price of the bond? O A. $868 OB. $1,042 O c. $1,216 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9%. What is the new price of the bond? O A. $1,065 O B. $888 OC. $1,243 OD. $1,000

A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left maturity) is 8.6%. What is the new price of the bond? O A. $1,201 O B. $858 OC. $1,029 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the t...

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years to maturity) is 9% . What is the new price of the bond? a. $860 b. $1,203 c, $1,031 d. $1,000
#23. A company issues a ten-year bond at par with a coupon rate of 6.7% paid...

#23. A company issues a ten-year bond at par with a coupon rate of 6.7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9.5%. What is the new price of the bond? A. $ 1015 B. $ 846 C. $ 1184 D. $1,000

Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually.

2. Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually. If the yield to maturity is 4.7%, what is the current price of the bond? 3. Seekers Inc. issued 15-year bonds a year ago at a coupon rate of 4.1%. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 4.5%, what is the current bond price?

A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually....

Homework Answers

Add Answer to:
A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually....

Post as a guest

Earn Coins

A company issues a ten-year bond at par with a coupon rate of 77% paid semi-annually. The YTM at the beginning of the...

A company issues a ten-year bond at par with a coupon rate of 6.6% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.9% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.2% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually....

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the t...

#23. A company issues a ten-year bond at par with a coupon rate of 6.7% paid...

Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually.

A company issues a​ ten-year bond at par with a coupon rate of 77​% paid​ semi-annually....

Homework Answers