What is the value of a bond that matures in 25 years, makes an annual coupon...
What is the value of a bond that matures in 25 years, makes an annual coupon payment of $100, and has a par value of $1000? Assume a required rate of return of 11%, and round your answer to the nearest $10.
What is the value of a bond that matures in 8 years, has an annual coupon payment of $90, and has a par value of $1000? Assume a required rate of return of 10%, and round your answer to the nearest $10. O $1,200 $950 O $900 O $1,150
IBM issues an 11% annual coupon rate bond that matures in 16 years. The face value is $1000. The required rate of return on bonds of similar risk and maturity is 9%. 1. Is this IBM bond selling at a premium, at par or at a discount and explain why? 2. What is the price of this bond and show how? 3. Coupon payments are made monthly. What is the price of THIS bond and show how you got your...
A bond that matures in 13 years has a $1000 par value. The annual coupon interest rate is 9 percent and the market's required yield to maturity on a comparable-risk bond is 12 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? a. The value of this bond if it paid interest annually would be $ nothing. (Round to the nearest...
A government bond matures in 6 years, makes annual coupon payments of 5.5% and offers a yield of 3.5% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 3.5%. What return has the bondholder earned over the 12-month period? Rate of Return %= b. Now suppose that the bond yields 2.5% at the end of the...
A bond that matures in 15 years has a $1000 par value. The annual coupon interest rate is 8 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
A bond that matures in 12 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on a comparable-risk bond is 17 percent. What would be the value of this bond if it paid interest annually_____? What would be the value of this bond if it paid interest semiannually_____? a. The value of this bond if it paid interest annually would be $nothingm. (Round to the nearest cent.)
A bond that matures in 17 years has a $1000 par value. The annual coupon interest rate is 15 percent and the market's required yield to maturity on a comparable-risk bond is 14 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? Question 7-3
A coupon bond that matures in 3 years paying an annual coupon of 8% (in semi-annual installments) with a face value of $1000 has an annual yield-to-maturity of 6%. The bond made its most recent interest payment yesterday, and so has 6 interest payments remaining. What is the price of the bond? Round the price to two decimal places (i.e. 123.45).
You own a bond that has a 6% annual coupon rate and matures 5 years from now. You purchased this 10-year bond at par value when it was originally issued. Which one of the following statements applies to this bond if the relevant market interest rate is now 5.8% (yield to maturity)? You purchase a bond with a coupon rate of 6.25% and a par value of $1,000. There are 53 days to the next semiannual coupon payment date and...