How does the equation for valuing a $1000 par value bond change if semiannual payments are...
How does the equation for valuing a $1000 par value bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10 percent coupon bond if nominal rd = 13%.
Homework Answers
If semi annual payments are made:
Number of periods = 10 * 2 = 20
Coupon = 0.1 * 1000 = 100 / 2 = 50
Rate = 13% / 2 = 6.5%
Value of Bond = Annuity * [ 1 - 1 / ( 1 + r)n] / r + FV / ( 1 + r)n
Value of Bond = 50 * [ 1 - 1 / ( 1 + 0.065)20] / 0.065 + 1000 / ( 1 + 0.065)20
Value of Bond = 50 * 11.018507 + 283.797029
Value of Bond = $834.72
Add Answer to:
How does the equation for valuing a $1000 par value bond change
if semiannual payments are...
A bond has a par value of $1000, a current yield of 6.60 percent, and semiannual coupon payments.
A bond has a par value of $1000, a current yield of 6.60 percent, and semiannual coupon payments. The bond is quoted at 9727 What is the amount of each coupon payment? Multiple Choice $33.00 $66.00 $64.20 $36.11 $32.10
a bond has a par value of 1000 a current yield of 7.11 percent and semiannual...
a bond has a par value of 1000 a current yield of 7.11 percent and semiannual coupon payments the bond is quoted at 103.57. what is the amount of each coupon payment
4.1.5 Don purchases a 1000 par value 10-year bond with 8% semiannual coupons for 900. He...
4.1.5 Don purchases a 1000 par value 10-year bond with 8% semiannual coupons for 900. He is able to reinvest his coupon payments at a nominal rate of 6% convertible semiannually. Calculate his nomi- nal annual yield rate convertible semiannually over the ten-year riod.
Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual...
Rearden Metal has just issued a callable, $1000 par value, twenty-year, 8% coupon bond with semiannual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. If the bond is currently trading for $1040.79, then its yield to call is closest to: Group of answer choices 3.8% 7.0% 7.6% 8.0%
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?
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...
A 1000 par-value 15-year bond has semiannual coupons of 60 each. This bond is callable at any of the last 10 coupon dat...
A 1000 par-value 15-year bond has semiannual coupons of 60 each. This bond is callable at any of the last 10 coupon dates. Find the price an investor should pay to guarantee a nominal yield rate (compounded semi-annually) of (a) 14%; (b) 10%; (c) 12%.
A 17-year, semiannual coupon bond sells for $948.63. The bond has a par value of $1000...
A 17-year, semiannual coupon bond sells for $948.63. The bond has a par value of $1000 and a yield to maturity of 7.1 percent. What is the bond's coupon rate? 5.93% 4.94% 6.26% 6.58% 3.29%
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for...
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: Periods per year. Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 b. What would be the price of the bond if market interest rates change to: 12% 6% 10% Nominal market rate, r: Value of bond:
in 2016, a semiannual coupon bond that matures in 2036 and has a $1000 par value traded at $1070. its par value is $1000...
in 2016, a semiannual coupon bond that matures in 2036 and has a $1000 par value traded at $1070. its par value is $1000 and its coupon rate is 6%. in 2017, the yield to maturity on the bond is 2% less than a year ago. what is the price for the bond in 2017?
A bond has a par value of $1,000, a current yield of 6.87 percent, and semiannual...
A bond has a par value of $1,000, a current yield of 6.87 percent, and semiannual coupon payments. The bond is quoted at 100.78. What is the amount of each coupon payment?
4.1.5 Don purchases a 1000 par value 10-year bond with 8% semiannual coupons for 900. He is able to reinvest his coupon payments at a nominal rate of 6% convertible semiannually. Calculate his nomi- nal annual yield rate convertible semiannually over the ten-year riod.
A 1000 par-value 15-year bond has semiannual coupons of 60 each. This bond is callable at any of the last 10 coupon dates. Find the price an investor should pay to guarantee a nominal yield rate (compounded semi-annually) of (a) 14%; (b) 10%; (c) 12%.
Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: Periods per year. Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 b. What would be the price of the bond if market interest rates change to: 12% 6% 10% Nominal market rate, r: Value of bond:
Most questions answered within 3 hours.
-
One 2.5 MW turbine had a monthly production of 700 MWh, while
the 250 MW wind...
asked 6 minutes ago -
C++ question.
Introduce a pass by pointer function that reverses a whole
vector.
asked 3 minutes ago -
The number of head trauma injuries at a small hospital has a
Poisson distribution with a...
asked 6 minutes ago -
1. An airplane leaves airport A and travels in a straight line
in a direction 30...
asked 22 minutes ago -
Consider a chess tournament in which you play one game with each
of 3 opponents, but...
asked 22 minutes ago -
There's sometimes a stereotype that in marriage the husband is
often older than the wife. The...
asked 30 minutes ago -
convert the following
138,000 J/mol to m^2/s
1.05 x 10^-5 m^2/s to kJ/ mol
asked 37 minutes ago -
Calculate the weight of H2SO4 in 25 mL of concentrated acid that
has a specific gravity...
asked 34 minutes ago -
An object is located 7.10 cm in front of a mirror. The virtual
image is located...
asked 3 hours ago -
Write a program in python that lets the user play the game Rock,
Paper, Scissors against...
asked 4 hours ago -
A car starts from rest on a curve with a radius of 150 m and
tangential...
asked 7 hours ago -
In Star Wars both the Storm Troopers and Droid Army are
notoriously bad shots. In order...
asked 10 hours ago