ZuoTi.Pro
Question

A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has...

A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has a face value of $1,000 and carries a coupon rate of 5%. Semi-annual interest. Approximately what is the bond market yield today if the current price is $ 1,130?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

If Semi Annual Coupon Pmt Nper PV FV payment Number of periods Presnt value Face value Nper 14*2 1000*0.05*1/2 $ 28 25.00 (1,

0 0
Add a comment
Know the answer?
Add Answer to:
A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1) A 20-year bond pays interest at 4% and was issued 12 years ago with a...

    1) A 20-year bond pays interest at 4% and was issued 12 years ago with a face value of $2,000. Semi-annual interest. What is the bond's price today if the interest rate on comparable new bond issues is 6%? 2) A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has a face value of $1,000 and carries a coupon rate of 5%. Semi-annual interest. Approximately what is the bond market yield today if the...

  • The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity...

    The market price of a semi-annual pay bond is $989.69. It has 24.00 years to maturity and a yield to maturity of 7.10%. What is the coupon rate? The market price of a semi-annual pay bond is $975.36. It has 14.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity? The market price of a semi-annual pay bond is $963.19. It has 14.00 years to maturity and a coupon rate...

  • A fixed coupon bond with 12 years left until maturity has a coupon rate of 7%...

    A fixed coupon bond with 12 years left until maturity has a coupon rate of 7% paid semi-annually. If the price of the bond is $1,060, its annual yield to maturity is _______%. Par value is $1,000. A. 6.281 B. 6.274 C. 3.137 D. 6.395

  • A $1,000 par-value, fixed coupon bond has 17 years remaining until maturity. The bond has an...

    A $1,000 par-value, fixed coupon bond has 17 years remaining until maturity. The bond has an annual coupon rate of 8 percent. If the market annual rate for this bond is 7.25 percent, what is the price of the bond? A 20-year bond pays $110 annually on a face value of $1,000. If similar bonds are currently yielding 8%, what is the bond price?

  • Consider two bonds: bond XY and bond ZW . Bond XY has a face value of $1,000 and 10 years to maturity and has just been...

    Consider two bonds: bond XY and bond ZW . Bond XY has a face value of $1,000 and 10 years to maturity and has just been issued at par. It bears the current market interest rate of 7% (i.e. this is the yield to maturity for this bond). Bond ZW was issued 5 years ago when interest rates were much higher. Bond ZW has face value of $1,000 and pays a 13% coupon rate. When issued, this bond had a...

  • A bond with a face value of $1,000 has 10 years until maturity, carries a coupon...

    A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000 and annual coupon payments.) a. If the bond has a yield to maturity of 9.1% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.) b. What will be the rate of return...

  • A bond with a face value of $1,000 has 10 years until maturity, carries a coupon...

    A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.5%, and sells for $1,150. Interest is paid annually. (Assume a face value of $1,000 and annual coupon payments.) a. If the bond has a yield to maturity of 10.5% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.) b. What will be the rate of return...

  • Gary Jones has identified a zero coupon bond for investment in one of his portfolios. With...

    Gary Jones has identified a zero coupon bond for investment in one of his portfolios. With a face value of $1,000, a final maturity of 15 years and a current market interest rate (YTM) of 3.65%, he is computing the fair price that he should pay today. If he assumes semi-annual compounding, the price of the bond should be $ (Select) 4. If the market interest rate (YTM) does not change, the value of the bond will [Select] > Gary...

  • ouphi& Shour ur wort. Coupon rate 6% Face value $1,000 Maturity 10 years Yield to maturity-6.5%...

    ouphi& Shour ur wort. Coupon rate 6% Face value $1,000 Maturity 10 years Yield to maturity-6.5% a) Assuming this bond pays interest semi-annually, and there is exactly six months until the next coupon payment, find its current price and current yield. b) Assume this bond matures in 9 years and 9 months, find the price and the amount of Saccrued interest. (Assume semi-annual coupons.) c) Assume this bond is callable in eight years at $1,060. Find the bond's yield to...

  • 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value,...

    19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is 6.97 percent? A. $799.32 B. $848 16 C. $917.92 D. $1,005.46 E. None of the above.l 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT