there you go 6.1. Calculate ule Price Uld J./ 70 LUUPUII UUUU wilay V IVREW -...

Question

Question

there you go
8.1. Calculate the price of a 5.7 % coupon bond with 22 years left to maturity and a market interest rate of 6.5 %. (Assume i

Answer 1

Answer #1

Using financial calculator
Input: FV= 1000

PMT=5.7%*1000/2= 28.5

N=22*2=44

I/Y=6.5/2=3.25

Solve for PV as 417.42

Bond price= $417.42

This is a discount bond since price is less than par value

Answer 2

Similar Homework Help Questions

Calculate the price of a 5.4 percent coupon bond with 10 years left to maturity and...

Calculate the price of a 5.4 percent coupon bond with 10 years left to maturity and a market interest rate of 5.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond price
17. You have $15,000 to invest. You want to purchase shares of Alaska Air at $42.88,...

17. You have $15,000 to invest. You want to purchase shares of Alaska Air at $42.88, Best Buy at $51.32, and Ford Motor at $8.51. How many shares of each company should you purchase so that your portfolio consists of 30 % Alaska Air, 40 % Best Buy, and 30 % Ford Motor? (Do not round intermediate calculations and round your final answers to the nearest whole number.) Alaska air Best buy Ford motor 18. Calculate the price of a...
Problem 7-11 Zero-Coupon Bond Price (LG7-4) Calculate the price of a zero-coupon bond that matures in...

Problem 7-11 Zero-Coupon Bond Price (LG7-4) Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price At the beginning of the month, you owned $6,000 of News Corp. $5,000 of First Data, and $8,500 of Whirlpool. The monthly returns for News Corp. First Data, and Whirlpool were 8.24 percent, -2.59...

Calculate the price of a zero-coupon bond that matures in 24 years if the market interest...

Calculate the price of a zero-coupon bond that matures in 24 years if the market interest rate is 4.9 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of...

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.2 percent, a YTM of 6.2 percent, and has 15 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6.2 percent, a YTM of 8.2 percent, and also has 15 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000. a. What are the prices of...
Item 7Item 7 Calculate the price of a zero-coupon bond that matures in 15 years if...

Item 7Item 7 Calculate the price of a zero-coupon bond that matures in 15 years if the market interest rate is 3.5 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and...

Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A 7.25 percent coupon bond with 24 years left to maturity is priced to offer a...

A 7.25 percent coupon bond with 24 years left to maturity is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.1 percent. What would be the total return of the bond in dollars? (Assume interest payments are semiannual.) (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total return ______ What would be the...
A 4.40 percent coupon municipal bond has 10 years left to maturity and has a price...

A 4.40 percent coupon municipal bond has 10 years left to maturity and has a price quote of 97.95. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) Compute the bond’s current yield. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Compute the yield to maturity. (Do not round intermediate calculations. Round your answer to 2 decimal...

thats the only information given 7. Calculate the price of a zero coupon bond that matures...

thats the only information given 7. Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 4.5 %. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero coupon bond price 7. Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 4.5 %. (Do not round intermediate calculations and round your final answer to 2 decimal...