What is the current price of a 4 year semi-annual bond with a face value of $1000 and a coupon rate of 6%? Assume the current interest rate is 5% a. 1035.85 b. 1056.33 c.1089.12 d.1000
Current Price of the Bond
Variables |
Financial Calculator Keys |
Figures |
Par Value/Face Value of the Bond [$1.000] |
FV |
1,000 |
Coupon Amount [$1,000 x 6.00% x ½] |
PMT |
30 |
Market Interest Rate or Yield to maturity on the Bond [5.00% x ½] |
1/Y |
2.50 |
Maturity Period/Time to Maturity [4 Years x 2] |
N |
8 |
Bond Price |
PV |
? |
Here, we need to set the above key variables into the financial calculator to find out the Price of the Bond. After entering the above keys in the financial calculator, we get the Price of the Bond (PV) = $1,035.85.
“Hence, the Current Price of the Bond will be $1,035.85”
What is the current price of a 4 year semi-annual bond with a face value of...
What is the current value of a 10-year semi-annual interest bond that has a $1,000 maturity value, coupon rate of 10%, and the YTM is 10%? a.) $376.09 b.) $623.11 c.) $1,000.00 d.) $692.77 What is the current value of a 10-year semi-annual interest bond that has a $1,000 maturity value, coupon rate of 6%, and the YTM is 10%? a.) $750.76 b.) $376.89 c.) $373.87 d.) $1,000.00
1. If you buy a semi-annually compounded 5-year corporate coupon bond with a face value of $1000, coupon rate of 4%, and yield to maturity of 6%, then you know that a)the fair price of the bond is less than $1000. b)the coupon amount is $30. c)both a) and b) are correct. d)neither a) nor b) is correct. 2. Assuming 365 days in a year, if the annual interest rate is 10%, what is the present value of a $100...
A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a market price of $1,032.19. Assume that the next coupon payment is exactly six months away. a) What is the yield-to-maturity of the bond? b) What is the effective annual rate implied by this price?
12- You are interested in purchasing a 30-year, semi-annual bond with a current market price of $1015.75. If the yield to maturity is 6.85% and the face value is $1,000, what must the coupon rate be on the bond? (6.97%) 13- Suppose a 7.75% coupon bond with 15 years to maturity and a face value of $1,000 presently has a yield to maturity of 7.25%. Assuming annual interest payments, what is the price of the bond? ($1,044.83)
You paid $957,3 for a 5% 5-year bond, which has a face value of $1000 and pays coupons twice each year. What is the yield-to-maturity? Choose the closest answer A 2% B 3% C 4% D 5% E 6% A bond matured in 15 years has a current yield of 8.35%. The face value is $1000 while the selling price is $1197.93. What is its coupon rate if it pays semi-annual coupon payments? A 4.18% B 5.00% C 8.35% D...
Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000, a current market price of $989, and a 5 percent coupon. Which one of the following statements is correct concerning this bond? Multiple Choice The current coupon rate is greater than 5 percent. The bond is a money market instrument. The bond will pay less annual interest now than when it was originally issued. The current yield exceeds the coupon rate. The bond will pay...
3. What is the price of a $1,000 face value bond with a 10% semi-annual coupon rate if the bond matures in 5 years and requires a return of 12%?
The DJ Company issued a 12-year semi-annual pay bond 2 years ago. The face value of the bond is $1,100 and the coupon rate is 4%. The current market rate (annual APR) on comparable bonds is 5%. Calculate the bond's current price.
The DJ Company issued a 12-year semi-annual pay bond 2 years ago. The face value of the bond is $1,100 and the coupon rate is 4%. The current market rate (annual APR) on comparable bonds is 5%. Calculate the bond's current price.
4- You are purchasing a 20-year, semi-annual bond with a current market price of $973.64. If the yield to maturity is 8.68 percent and the face value is $1,000, what must the coupon payment be on the bond?