Calculate the price of a five-year bond that has a coupon of 6.5 percent paid annually....
Calculate the price of a five-year bond that has a coupon of 6.5 percent paid annually. The current market rate is 7.1 percent. Round to 2 decimal places.
Homework Answers
| K = N |
| Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k] + Par value/(1 + YTM)^N |
| k=1 |
| K =5 |
| Bond Price =∑ [(6.5*1000/100)/(1 + 7.1/100)^k] + 1000/(1 + 7.1/100)^5 |
| k=1 |
| Bond Price = 975.47 |
Add Answer to:
Calculate the price of a five-year bond that has a coupon of 6.5
percent paid annually....
A 30-year maturity bond has a 7.6% coupon rate, paid annually. It sells today for $886.17....
A 30-year maturity bond has a 7.6% coupon rate, paid annually. It sells today for $886.17. A 20-year maturity bond has a 7.1% coupon rate, also paid annually. It sells today for $895.5. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 8.6% and 15-year maturity bonds will sell at yields of 8.1%. Because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term...
Highland Corp. , a U. S. company, has a 5 year bond whose yield to maturity...
Highland Corp. , a U. S. company, has a 5 year bond whose yield to maturity is 6 percent The bond has no coupon payments but assume semi annual compounding. What is the price of this zero coupon bond? Round the answer to 2 decimal places. Calculate the price of a five-year bond that has a coupon of 6.5 percent paid annually. The current market rate is 7.8 percent. Round to 2 decimal places.
A 30-year maturity bond has a 6% coupon rate, paid annually. It sells today for $877.42....
A 30-year maturity bond has a 6% coupon rate, paid annually. It sells today for $877.42. A 20-year maturity bond has a 5.5% coupon rate, also paid annually. It sells today for $889.5. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 7% and that 15-year maturity bonds will sell at yields of 6.5%. Because the yield curve is upward-sloping, the analyst believes that coupons will be invested in short-term...
Sunland Company is issuing eight-year bonds with a coupon rate of 6.5 percent and semiannual coupon...
Sunland Company is issuing eight-year bonds with a coupon rate of 6.5 percent and semiannual coupon payments. If the current market rate for similar bonds is 12 percent. What will the bond price be? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and bond price to 2 decimal places, e.g. 15.25.) Bond Price ? If company management wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 5 decimal places, e.g....
A $10,000 - 5 year bond has a coupon rate of 6.5% semi – annually. Yesterday...
A $10,000 - 5 year bond has a coupon rate of 6.5% semi – annually. Yesterday it was rated triple B with a market rate of 7.15%. Today it was upgraded to single A with a market rate of 6.4%. What was yesterday’s bond price? What is today’s bond price?
Bond A has the following terms • Coupon rate of interest (paid annually) 12 percent •...
Bond A has the following terms • Coupon rate of interest (paid annually) 12 percent • Principal: $1,000 • Term to maturity Tes year Bond Bhes the following terms 6 percent Coupon rate of interest Cosid annual - Principal: $1,000 - Omat Ten year bond of interest rate is 12 percent Use Appendix and Anpendio to answer the question. Round your answers to the nearest dollar . What should be the price for Price of bond A Pnce of bond...
At t=0, you purchase a five-year, 8 percent coupon bond (paid annually) that is priced at...
At t=0, you purchase a five-year, 8 percent coupon bond (paid annually) that is priced at par. The face value of the bond is $1,000. You are also given that your investment horizon is also five years. Suppose that the market interest rate increases to 9 percent (increase by 100 basis points) during the first year of your purchase (within year 1), and it remains at that level (9 percent) for the next four years. You hold the bond till...
At t=0, you purchase a five-year, 8 percent coupon bond (paid annually) that is priced at...
At t=0, you purchase a five-year, 8 percent coupon bond (paid annually) that is priced at par. The face value of the bond is $1,000. You are also given that your investment horizon is also five years. Suppose that the market interest rate increases to 9 percent (increase by 100 basis points) during the first year of your purchase (within year 1), and it remains at that level (9 percent) for the next four years. You decided to sell the...
Kevin Rogers is interested in buying a five-year bond that pays a coupon of 9.8 percent...
Kevin Rogers is interested in buying a five-year bond that pays a coupon of 9.8 percent on a semiannual basis. The current market rate for similar bonds is 8.8 percent. What should be the current price of this bond? (Do not round intermediate computations. Round your final answer to two decimal places)
A 20-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a...
A 20-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,010. The bond currently sells at a yield to maturity of 6% (3% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. What is the yield to call annually if the call price is only $960? (Do not round intermediate calculations. Round your answer to 3 decimal...
Highland Corp. , a U. S. company, has a 5 year bond whose yield to maturity is 6 percent The bond has no coupon payments but assume semi annual compounding. What is the price of this zero coupon bond? Round the answer to 2 decimal places. Calculate the price of a five-year bond that has a coupon of 6.5 percent paid annually. The current market rate is 7.8 percent. Round to 2 decimal places.
A 30-year maturity bond has a 6% coupon rate, paid annually. It sells today for $877.42. A 20-year maturity bond has a 5.5% coupon rate, also paid annually. It sells today for $889.5. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 7% and that 15-year maturity bonds will sell at yields of 6.5%. Because the yield curve is upward-sloping, the analyst believes that coupons will be invested in short-term...
Bond A has the following terms • Coupon rate of interest (paid annually) 12 percent • Principal: $1,000 • Term to maturity Tes year Bond Bhes the following terms 6 percent Coupon rate of interest Cosid annual - Principal: $1,000 - Omat Ten year bond of interest rate is 12 percent Use Appendix and Anpendio to answer the question. Round your answers to the nearest dollar . What should be the price for Price of bond A Pnce of bond...
Kevin Rogers is interested in buying a five-year bond that pays a coupon of 9.8 percent on a semiannual basis. The current market rate for similar bonds is 8.8 percent. What should be the current price of this bond? (Do not round intermediate computations. Round your final answer to two decimal places)
Most questions answered within 3 hours.
-
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 35 minutes ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 27 minutes ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 50 minutes ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 1 hour ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 1 hour ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 2 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 3 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 2 hours ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 3 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 3 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 4 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 4 hours ago