Homework Answers
Answer - Option D
The payments (as shown in time line above) are made quarterly, and there are 40 payments. So, this implies life of bond is 10 years. (since there are 4 quarters per year).
Every quarter, payment = $11.8
Annual payment = 4 *$11.8 = $47.2
Nominal or par value is paid at the end of 40 period, in additional to coupon payment = $1000
Coupon rate = $47.2/$1000 * 100 = 4.7%
Add Answer to:
$11.8 $118 8 $11. $118 $1 corporation issues a bond that generates the above cash flows....
Period 59 60 $21.5 $21.5 $21.5 $21.5 $21.5 +$2,000 A corporation issues a bond that generates...
Period 59 60 $21.5 $21.5 $21.5 $21.5 $21.5 +$2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 3 months, which of the following best describes that bond? O A. a 60-year bond with a notional value of $2,000 and a coupon rate of 4.3% paid monthly. OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.075% paid annually. O C. a 15-year bond with a notional...
Year 0 1 14 15 $960 $960 $960 $96 0 96 0$2000 dar A corporation issues...
Year 0 1 14 15 $960 $960 $960 $96 0 96 0$2000 dar A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid quarterly O B. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid semiannually OC. a 15-year...
A corporation issues a bond that generates the above cash flows. If the periods represent 6-month...
A corporation issues a bond that generates the above cash flows.
If the periods represent 6-month intervals, which of the following
best describes this bond?
0 1 2 3 59 60 $87.50 $87.50 $87.50 $87.50 $5,087.50 A corporation issues a bond that generates the above cash flows. If the periods represent 6-month intervals, which of the following best describes this bond? A 30-year bond with a face value of $5,000 and a coupon rate of 1.75% paid semiannually а. A...
Period 0 3 29 30 N + + $135.0 $135.0 $135.0 $135.0 $135.0 + $5,000 A...
Period 0 3 29 30 N + + $135.0 $135.0 $135.0 $135.0 $135.0 + $5,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 6 months, which of the following best describes that bond? O A. a 10-year bond with a notional value of $5,000 and a coupon rate of 2.700% paid annually. OB. a 15-year bond with a notional value of $5,000 and a coupon rate of 1.350% paid monthly O C....
Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually.
2. Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually. If the yield to maturity is 4.7%, what is the current price of the bond? 3. Seekers Inc. issued 15-year bonds a year ago at a coupon rate of 4.1%. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 4.5%, what is the current bond price?
A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually....
A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9%. What is the new price of the bond? O A. $1,065 O B. $888 OC. $1,243 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually....
A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left maturity) is 8.6%. What is the new price of the bond? O A. $1,201 O B. $858 OC. $1,029 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually....
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8%. What is the new price of the bond? O A. $1,278 O B. $913 OC. $1,095 OD. $1,000
You have just purchased a 10-year, $1,000 par value bond. The coupon de un annually, with...
You have just purchased a 10-year, $1,000 par value bond. The coupon de un annually, with interest being paid semiannually. If you expect to earn a 10 percent rate of return (YTM) on this bond, how much did you pay for it? $1,122.87 O $1,003,42 $1,003.42 $875.38 $950.75 $812.15 You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid semiannually. If you expect to earn a...
This Question: 1 pt 5 of 25 3 complete A company issues a ten-year bondat per...
This Question: 1 pt 5 of 25 3 complete A company issues a ten-year bondat per with a coupon rate of 6.9% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years of to maurity) is 8.0%. What is the new price of the bond? O A $1,065 OB. $1,242 OC. 9887 OD. $1.000 Click to select your answer.
Period 59 60 $21.5 $21.5 $21.5 $21.5 $21.5 +$2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 3 months, which of the following best describes that bond? O A. a 60-year bond with a notional value of $2,000 and a coupon rate of 4.3% paid monthly. OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.075% paid annually. O C. a 15-year bond with a notional...
Year 0 1 14 15 $960 $960 $960 $96 0 96 0$2000 dar A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid quarterly O B. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid semiannually OC. a 15-year...
A corporation issues a bond that generates the above cash flows.
If the periods represent 6-month intervals, which of the following
best describes this bond?
0 1 2 3 59 60 $87.50 $87.50 $87.50 $87.50 $5,087.50 A corporation issues a bond that generates the above cash flows. If the periods represent 6-month intervals, which of the following best describes this bond? A 30-year bond with a face value of $5,000 and a coupon rate of 1.75% paid semiannually а. A...
Period 0 3 29 30 N + + $135.0 $135.0 $135.0 $135.0 $135.0 + $5,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 6 months, which of the following best describes that bond? O A. a 10-year bond with a notional value of $5,000 and a coupon rate of 2.700% paid annually. OB. a 15-year bond with a notional value of $5,000 and a coupon rate of 1.350% paid monthly O C....
A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9%. What is the new price of the bond? O A. $1,065 O B. $888 OC. $1,243 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left maturity) is 8.6%. What is the new price of the bond? O A. $1,201 O B. $858 OC. $1,029 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8%. What is the new price of the bond? O A. $1,278 O B. $913 OC. $1,095 OD. $1,000
You have just purchased a 10-year, $1,000 par value bond. The coupon de un annually, with interest being paid semiannually. If you expect to earn a 10 percent rate of return (YTM) on this bond, how much did you pay for it? $1,122.87 O $1,003,42 $1,003.42 $875.38 $950.75 $812.15 You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid semiannually. If you expect to earn a...
This Question: 1 pt 5 of 25 3 complete A company issues a ten-year bondat per with a coupon rate of 6.9% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years of to maurity) is 8.0%. What is the new price of the bond? O A $1,065 OB. $1,242 OC. 9887 OD. $1.000 Click to select your answer.
Most questions answered within 3 hours.
-
The hammer throw is a track-and-field event in which a 7.2-kg
ball (the ''hammer''), starting from...
asked 3 minutes ago -
Evaluate a specific listening situation using the Sapir-Whorf
and Bernstein hypothesis. What was thecontext? What was...
asked 10 minutes ago -
Recall that if X is a Student’s t random variable with n df,
then by definition...
asked 28 minutes ago -
A charge of -2.95 µC is fixed in place. From a horizontal
distance of 0.0470 m,...
asked 25 minutes ago -
Consider the following information:
Your company makes widgets. You are trying to figure out what
volume...
asked 27 minutes ago -
Math 333 Plz help ASAP
The yield of a chemical process is being studied. From previous...
asked 43 minutes ago -
Cobb-Douglas Preferences: Cobb-Douglas preferences on the
consump-
tion set R2+ can be represented by a utility...
asked 39 minutes ago -
In your experience, what are some of the barriers to the
successful implementation of a project?...
asked 42 minutes ago -
1. A normal distribution has a mean of
μ = 60 and a standard deviation
of...
asked 44 minutes ago -
The size of your Social Security benefits is determined by:
(select all that apply) Question 1...
asked 57 minutes ago -
Starch polymers are broken down by enzymes into monomers
called:
a.)maltose
b.) dextrins
c.) glucose
d.)...
asked 1 hour ago -
How does HA (High Availability) work and name two ways it can
help an organization?
asked 1 hour ago