Question

2. WalMart has another $1000 par value, semiannual pay bond with a coupon of 4.5%, 32 years to maturity, and a yield of 3.4%.

How do you get this answer? Please show work.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The present value factor after 32 years is 0.34

price of the bond - I Cn (14YTM2n + YTTY) 20 coupon payment = $1000x4.5%x%% = 45x%2: 22.5 Annuity factor of 107% for 64 penod

Add a comment
Know the answer?
Add Answer to:
How do you get this answer? Please show work. 2. WalMart has another $1000 par value,...
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
  • in 2016, a semiannual coupon bond that matures in 2036 and has a $1000 par value traded at $1070. its par value is $1000...

    in 2016, a semiannual coupon bond that matures in 2036 and has a $1000 par value traded at $1070. its par value is $1000 and its coupon rate is 6%. in 2017, the yield to maturity on the bond is 2% less than a year ago. what is the price for the bond in 2017?

  • please answer both and show work! Compute the price of a $1,000 par value, 8 percent...

    please answer both and show work! Compute the price of a $1,000 par value, 8 percent (semi-annual payment) coupon bond with 29 years remaining until maturity assuming that the bond's yield to maturity is 16 percent? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 11 years remaining to maturity,...

  • (1) (Bond Valuation) a bond that matures in 9 years has a $1000 par value. the...

    (1) (Bond Valuation) a bond that matures in 9 years has a $1000 par value. the annual coupon interest rate is 14% and the markets required yield to maturity on a comparable risk-bond is 16%. what would be the value of this bond if it paid interest annually? what would be the vale of this bond if it paid interest semi-annually? (2) (yield to maturity) the market price is $850 for a 12-year bond ($1000 par value) that pays 9%...

  • Suppose a 14 year, 5%, semiannual coupon bond with a par value of $1000 is currently...

    Suppose a 14 year, 5%, semiannual coupon bond with a par value of $1000 is currently selling for $950. The bond can be called in another 3 years for $1075. Whould you be more likely to earn the yield to call or the yield to maturity? Yield to call because the current price is below the call price. Yield to call because the coupon rate is above the yield to maturity. Yield to maturity because the current price is below...

  • please answer both and show work! Calculate the current price of a $5,000 par value bond...

    please answer both and show work! Calculate the current price of a $5,000 par value bond that has a coupon rate of 20 percent, pays coupon interest quarterly (i.e. 4 times per year), has 22 years remaining to maturity, and has a current yield to maturity (discount rate) of 8 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Calculate the current price of a $1,000 par value bond that has a coupon rate...

  • A 20-year bond with a coupon rate of 8% and par value of $1000 currently has...

    A 20-year bond with a coupon rate of 8% and par value of $1000 currently has a yield to maturity of 6%. The bond is callable in 5 years with a call price of $1100. What is the bond’s yield to call? A zero-coupon bond with 10 years remaining until maturity and a par value of $1000 has a yield to maturity of 10%. What is the bond’s price? (Financial calculator please)

  • The answer is 5.98, but please show me how to do it on the formula that...

    The answer is 5.98, but please show me how to do it on the formula that i sent to get a thums up. Acoupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is ellin for $1.250 and has eight years to maturity. What is the bond's yield to maturity? (An equation is sufficient.) 3 currently 3. Coupon Bond Using the same strategy used for the fixed-payment loan: P price of coupon bond C...

  • A bond has a par value of $1,000, a current yield of 7.13 percent, and semiannual...

    A bond has a par value of $1,000, a current yield of 7.13 percent, and semiannual coupon payments. The bond is quoted at 96.88. What is the coupon rate of the bond? Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.31 percent and semiannual payments. The bond matures in 19 years, with a yield to maturity of 3.93 percent, and a par value of $5,000. What is the market price of the bond?

  • a bond has a par value of 1000 a current yield of 7.11 percent and semiannual...

    a bond has a par value of 1000 a current yield of 7.11 percent and semiannual coupon payments the bond is quoted at 103.57. what is the amount of each coupon payment

  • please answer question in excel and show the formula to get the answer ( I must...

    please answer question in excel and show the formula to get the answer ( I must have the formula) Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 3.8 percent. What is the dollar price of the bond? 1/1/2000 1/1/2013 4.90% Settlement date Maturity date Coupon rate Coupons per year Redemption value (% of par) Yield to...

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