Question

Question 2 of 10 10.0 Points Calculate the price of a six-year $1.000 face-value bond with a 7% annual coupon rate and a yiel
0 0
Add a comment Improve this question Transcribed image text
Answer #1

1,000 7% 8 2/ 35 6 A A Par value (FV) B Coupon rate C|Number of compounding periods per year D = AxB/C Interest per period (P

Please rate thumbs up

Add a comment
Know the answer?
Add Answer to:
Question 2 of 10 10.0 Points Calculate the price of a six-year $1.000 face-value bond with...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 10.0 Points Question 3 of 10 A ten-year $10,000 face value bond with semi-annual coupon payments has an 8% annual c...

    10.0 Points Question 3 of 10 A ten-year $10,000 face value bond with semi-annual coupon payments has an 8% annual coupon rate and a 9% annual YTM. It is selling for 93.45% of par. What are the semi-annual interest payments? A $40 B. 5400 C. 5450 D. 5800 Answer Key B

  • d. Assume that you have a one-year coupon bond with a face value of $1,000 and...

    d. Assume that you have a one-year coupon bond with a face value of $1,000 and a coupon payment of $50. What is the price of the bond if the yield to maturity is 6%? e. Assume that you have the same bond is in part d, except instead of paying one annual payment of $50, the bond pays two semi-annual payments of $25 (one six months from now and another payment in twelve months). What is the price of...

  • A bond face value is $1000, with a 6-year maturity. Its annual coupon rate is 7%...

    A bond face value is $1000, with a 6-year maturity. Its annual coupon rate is 7% and issuer makes semi-annual coupon payments. The annual yield of maturity for the bond is 6%. The bond was issued on 7/1/2017. An investor bought it on 8/1/2019. Calculate its dirty price, accrued interests, and clean price.

  • a) (5 points) Calculate the price of a $1000 face value five year coupon bond when...

    a) (5 points) Calculate the price of a $1000 face value five year coupon bond when the yield to maturity is 5%, and the coupon rate is 6%. b) (5 points) Now suppose that the yield to maturity rises to 7%. Calculate the new price of this coupon bond. c) (5 points) Suppose you purchased the bond at it original price (yield to maturity = 5%) held it for one year (collected one coupon payment) and sold it at the...

  • Consider two bonds. The first is a 6% coupon bond with six years to maturity, and...

    Consider two bonds. The first is a 6% coupon bond with six years to maturity, and a yield to maturity of 4.5% annual rate, compounded semi-annually. The second bond is a 2% coupon bond with six years to maturity and a yield to maturity of 5.0%, annual rate, compounded semi-annually. 1. Calculate the current price per $100 of face value of each bond. (You may use financial calculator to do question 1 and 2, I'm just unsure how to use...

  • Q4 - Bond Valuation (25 min) Value the following bonds 20-year bond with a face value...

    Q4 - Bond Valuation (25 min) Value the following bonds 20-year bond with a face value of $10,000 with an annual coupon of 5% and market rate (yield to maturity or YTM) of 6.5% 10-year bond with a coupon of 8% (split into quarterly payments), face value of $5000 and YTM of 7% (annually) 5-year bond with a face value of $4,000, with semi-annual coupon payments, with a coupon rate equal to YTM.

  • A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a...

    A 5.5%, 5-year bond with semi-annual coupon payments and a face value of $1,000 has a market price of $1,032.19. Assume that the next coupon payment is exactly six months away. a) What is the yield-to-maturity of the bond? b) What is the effective annual rate implied by this price?

  • A 15 year maturity bond with face value of $1.000 makes semiannual coupon payments and has...

    A 15 year maturity bond with face value of $1.000 makes semiannual coupon payments and has a coupon rate of 12% a What is the bond's yield to maturity of the bond is selling for $940? Enter annual yield to maturity as your answer. (Do not round Intermediate calculations. Round your answer to 3 decimal places.) Annual yield to maturity b. What is the bond's yield to maturity of the bond is selling for $1,000? Enter annual yield to maturity...

  • Question #5: Bond Pricing [16 Points Calculate the prices of the following bonds (16 Points; 8...

    Question #5: Bond Pricing [16 Points Calculate the prices of the following bonds (16 Points; 8 Points each] (a) A 14 year $1000 face value coupon bond that pays an coupon rate of 4.6%. The YTM = 3.2%. Assume that the coupon payments are paid semi-annually, (b) A 14 year $1000 face value coupon bond that pays an coupon rate of 4.6%. The YTM = 3.2% Assume that the coupon payments are paid annually. Question #6: Bond Pricing and Accrued...

  • 15. A four-year bond has 9.0% coupon rate and face value of $1000. If the yield...

    15. A four-year bond has 9.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 12%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT