Price of Bond = PV of CFs
Period | CF | PVf @7.5% | Disc CF |
1 | $ 40.00 | 0.9302 | $ 37.21 |
2 | $ 40.00 | 0.8653 | $ 34.61 |
3 | $ 40.00 | 0.8050 | $ 32.20 |
4 | $ 40.00 | 0.7488 | $ 29.95 |
5 | $ 40.00 | 0.6966 | $ 27.86 |
6 | $ 40.00 | 0.6480 | $ 25.92 |
7 | $ 40.00 | 0.6028 | $ 24.11 |
8 | $ 40.00 | 0.5607 | $ 22.43 |
9 | $ 40.00 | 0.5216 | $ 20.86 |
10 | $ 40.00 | 0.4852 | $ 19.41 |
11 | $ 40.00 | 0.4513 | $ 18.05 |
12 | $ 40.00 | 0.4199 | $ 16.79 |
13 | $ 40.00 | 0.3906 | $ 15.62 |
14 | $ 40.00 | 0.3633 | $ 14.53 |
15 | $ 40.00 | 0.3380 | $ 13.52 |
16 | $ 40.00 | 0.3144 | $ 12.58 |
17 | $ 40.00 | 0.2925 | $ 11.70 |
18 | $ 40.00 | 0.2720 | $ 10.88 |
19 | $ 40.00 | 0.2531 | $ 10.12 |
20 | $ 40.00 | 0.2354 | $ 9.42 |
21 | $ 40.00 | 0.2190 | $ 8.76 |
22 | $ 40.00 | 0.2037 | $ 8.15 |
23 | $ 40.00 | 0.1895 | $ 7.58 |
24 | $ 40.00 | 0.1763 | $ 7.05 |
25 | $ 40.00 | 0.1640 | $ 6.56 |
26 | $ 40.00 | 0.1525 | $ 6.10 |
27 | $ 40.00 | 0.1419 | $ 5.68 |
28 | $ 40.00 | 0.1320 | $ 5.28 |
28 | $ 1,000.00 | 0.1320 | $ 132.00 |
Price | $ 594.93 |
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid semiannually, and the bonds mature in 14 years. Their par value is $1,000 If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually? a. If the interest is paid semiannually, the value of the bond is $ 594.93 (Round to the nearest cont.) b. If the interest is...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 7 years. Their par value is $1,000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually?
(Band valuation) Hamiton, Inc. bonds have a coupon rate of 12 percent. The interest is paid the value of the bond? What is the value if the interest is paid annually? annual and the bonds mature in 7 years. Their par value is $1.000. If your required rate of burn is 8 percent, what is a. If the interest is paid semiannually, the value of the bond is (Round to the nearest cont.)
(Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 15 percent. The interest is paid semiannually and the bonds mature in 12 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 12 percent, what is the value of the bond? What is its value if the interest is paid annually? a. The value of the Enterprise bonds if the interest is paid semiannually is $ _______ . (Round to the...
(Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually and the bonds mature in 9 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 14 percent, what is the value of the bond? What is its value if the interest is paid annually and semiannually? (Round to the nearest cent.) a. The value of the Enterprise bonds if the interest is paid semiannually...
Enterprise, Inc. bonds have an annual coupon rate of 16 percent. The interest is paid semiannually and the bonds mature in 15 years. Their par value is $1 comma 000. If the market's required yield to maturity on a comparable-risk bond is 11 percent, what is the value of the bond? What is its value if the interest is paid annually? a. The value of the Enterprise bonds if the interest is paid semiannually is $ nothing. (Round to the...
(Bond valuation) Bellingham bonds have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 30 years. If you require a return of 14 percent, what price would you be willing to pay for the bond? What happens if you pay more for the bond? What happens if you pay less for the bond? a. The price you would be willing to pay for the bond is $(Round to the nearest cent.)
(Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 11 percent, and the investor's required rate of return is 14 percent The value of the bond is S828.27 (Round to the nearest cent. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1.000 face value. The annual coupon interest rate is 5 percent, and the...
(Bond valuation) Bellingham bonds have an annual coupon rate of 15 percent and a par value of $1,000 and will mature in 5 years. If you require a return of 8 percent, what price would you be willing to pay for the bond? What happens if you pay more for the bond? What happens if you pay less for the bond? The price you would be willing to pay for the bond is $ . (Round to the nearest cent.)
(Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of retum is 14 percent, what is the value of the bond? How would your answer change the interest wore and annually? a. If the interest is paid semiannually, the value of the bond is S. (Round to the nearest cent) b. If the interest is paid annually, the value of the bond...