You are considering buying a Stragen's Corp. bond with a $1000 face value, 16% semi-annual coupon that has 14 years left until maturity. The bond has a yield to maturity of 10%. What is the fair price of this bond?
$1,446.94
$1,191.85
$1,442.00
None of these
$668.47
Fair price of the bond is calculated using the PV function as follows:-
=PV(rate,nper,pmt,fv)
=PV(10%/2,14*2,16%/2*1000,1000)
=1446.94
You are considering buying a Stragen's Corp. bond with a $1000 face value, 16% semi-annual coupon...
You are considering buying a Fagel Corp. bond with a $1000 face value, 11% semi-annual coupon that has 14 years left until maturity. The bond has a yield to maturity of 16%. What is the fair price of this bond? $726.62 None of these $723.72 $1,353.04 $607.81
You are considering buying an 8% annual pay coupon bond with a $1000 face value, and 20 years to maturity that cost $1200 today. You expect to sell the bond in 5 years. At that time you expect the discount rate on similar bonds with similar risk to be 8%. If you’re correct, the yield over the 5-year period would be:
Five years ago, Cookie Corp. issued a bond with 15% coupon rate, semi-annual coupon payments, $1000 face value and 15 years until maturity. The current YTM is 16%. If you sell the bond today (next coupon payment is in 6 months from today), after having owned it for 4 years, what would your capital gain/loss yield? Please show formulas and do not use excel or financial calculator.
Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00 and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. What price will Evin pay for the bond? A. The bid price plus $10 B. The bid price...
Bond A is a semi-annual coupon bond that has a face value of $1000, a 10% coupon rate, a five year maturity, and a yield to maturity of 7%. At the maturity date, how much payment should the bond investor expect from the bond? (a) $50 (b) $100 (c) $1035 (d) $1050
A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current value of $1,036.09, and 3 years until the first call date. What is the call price if the yield to call is 6.5 percent? A STRIPS has a yield to maturity of 6.2 percent, a par value of $25,000, and a time to maturity of 10 years. What is the price
A 3% annual coupon, 10 year maturity, semi-annual coupon payment, $1000 face value, 4% yield to maturity bond is callable in 7 years with a call premium of $1,100. What is the yield to call for this bond? Express your answer in decimal format (e.g., input 0.0329 for 3.29%)
Consider a bond with a 7 percent semi-annual coupon and a face value of $1000. Complete the following table. Note that yield to maturity is quoted annually. Years to Maturity Yield to Maturity(percent) Current Prices 3 5 3 7 6 7 9 8 9 950
Five years ago, Winter Tire Corp. issued a bond with a 12% coupon rate, semi-annual coupon payments, $1,000 face value, and 15-years until maturity. a) You bought this bond two years ago (right after the coupon payment) when the yield-to-maturity was 12%. How much did you pay for the bond? b) If the yield-to-maturity is 15% now, what is the value of the bond today (next coupon payment is in 6 months from today)? c) If you sold the bond...
You are considering a bond with a face value of $1 000 and a coupon rate of 2.0%. The bond has 16 year until maturity and coupon payments are paid semiannually. The yield to maturity on similar securities in the market is 8.3% What is the current price of this bond?