Number 8 please asap Thank you 8- Assume a $1,000 face value bond has a coupon...
Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000, a current market price of $989, and a 5 percent coupon. Which one of the following statements is correct concerning this bond? Multiple Choice The current coupon rate is greater than 5 percent. The bond is a money market instrument. The bond will pay less annual interest now than when it was originally issued. The current yield exceeds the coupon rate. The bond will pay...
formula + answer please 1. The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today? (5 PTS) 2. The KLM bond has $80 yearly coupon (with interest paid quarterly), a maturity value of $1,000, and matures in 20 years. If the bond is priced to yield 6%, what is the maximum price a which you...
1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and eight years to maturity. The bond makes coupon payments every six months, and is currently priced at $1,055.85. What is the yield to maturity on this bond? Select one: a. 3.54% b. 6.95% c. 7.07% d. 7.49% e. 14.99% 2. What is the duration of a five-year bond with coupon rate of 8%, yield to maturity of 6%, semi-annual coupon payment, and face value...
A bond has a face value of $1,000. The coupon rate is 7.2% (expressed as an annual percentage rate with semi-annual compounding). There are 2 coupon payments per year and the bond will mature in 4 years. The price is $985. A coupon payment has just been made and the next coupon payment for this bond is in 6 months. An investor buys the bond today and sells the bond in 2 years’ time, just after a coupon payment. When...
19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is 6.97 percent? A. $799.32 B. $848 16 C. $917.92 D. $1,005.46 E. None of the above.l 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is...
A bond has a $1,000 par value and an 8 percent coupon rate. The bond has four years remaining to maturity and a 10 percent yield to maturity. If the bond yield would decrease by 0.3 percentage points, the estimated percentage change in price of the bond would be ________%.
2 A 20 year semiannual bond has a 8% coupon rate and par value of $1,000. The required return by investors is 9%. How much would an investor be willing to pay for this bond?
WORTH 1 MARK 1. A corporation bond has the face value of $1,000, the coupon rate of 6% per annum and the remaining term-to-maturity of 10 years. Coupon interest on the bond will be paid semi- annually. The current yield-to-maturity of the bond is 5% per annum. Find the current price of the bond. Secondly, assume that the investor will buy this bond today and will hold the bond for the next 6 months. At the end of the next...
assume face value of 1000 for bond The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Yoo Company has a bond with a coupon rate of 10 percent outstanding. Both bonds have 17 years to maturity, make semiannual payments, and have a YTM of 7 percent. 10 points If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by...
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