You just purcahsed a $1000, 10% 15 year bond at par. If interest for similar bonds...
You just purcahsed a $1000, 10% 15 year bond at par. If interest for similar bonds increase to 11%, how much will your bond be worth if you want to sell it.
Homework Answers
Add Answer to:
You just purcahsed a $1000, 10% 15 year bond at par. If interest
for similar bonds...
You just purchased a $1000 par bond for $982.09. The current market interest rate is 10%...
You just purchased a $1000 par bond for $982.09. The current market interest rate is 10% and the bond pays a coupon of $90/year. You intend to hold the bond until maturity - 5 more years. How much will you receive for your bond in 5 years?
Example 1 Last year, The CYS sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par...
Example 1 Last year, The CYS sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion. These bonds pay semi-annual coupon payments. At issuance, the yield to maturity was 8.4%. Currently, investors are demanding a yield of 8.5% on similar bonds. (a)If you own one of these bonds and want to sell it, how much money can you expect to receive on it? (b)If you can reinvest the coupons you receive...
Hello, can you answer this question? you have just purchased a 5-year, $1000 par value bond....
Hello, can you answer this question? you have just purchased a 5-year, $1000 par value bond. the coupon rate on this bond is %12 , and the interest is paid annually. if you expect to earn a 10 percent yield to maturity on this bond, how much did you pay for it?
1 - (Yield to Maturity) A 35 year bond pays 7% interest annually on a $1000...
1 - (Yield to Maturity) A 35 year bond pays 7% interest annually on a $1000 par value. if the bonds sell at $815 what is the bonds yield to maturity? what would be the yield to maturity if the bond paid interest semiannually? 2 - (Bond Valuation) An 18-year, $1000 par value bonds pay 11% interest annually. The market price of the bonds is $1110 and the market required yield to maturity on a comparable risk bond id 8%....
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon...
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 11%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond....
You own a bond that pays $ 80 in annual interest, with a $1000 par value....
You own a bond that pays $ 80 in annual interest, with a $1000 par value. It matures in 20 years. The market required yield to maturity on a comparable-risk bond is 10% Calculate value of the bond How does the value change if the yield to maturity on comparable-risk bond Increase 17% or Decrease to 6% Explain the implications of your answers in part b as they relate to interest rate risk, premium bonds, and discount bonds Assume that...
Pecos Manufacturing has just issued a 15 year, 14% coupon interest rate, 1000-par bond that pays...
Pecos Manufacturing has just issued a 15 year, 14% coupon interest
rate, 1000-par bond that pays interest annually. The required
return is currently 11%, and the company is certain it will remain
at 11% until the bond mature in 15 years.
a. Assuming that the required return does remain at 11% until
maturity, find the value of the bond with (1) 15 years, (2) 12
years, (3) 9 years, (4) 6 years, (5) 3 years, (6) 1 year to
maturity....
Your firm is planning a 25 year bond issue. The $1000 par value bonds will pay...
Your firm is planning a 25 year bond issue. The $1000 par value bonds will pay a semi-annual coupon of $59.80. The investment bankers that you have retained for the bond issue estimate that the bonds will sell for $1,183.12. What is the rate of return that your firm is paying on the bonds?
Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, $1000-par bond that pays interest...
Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, $1000-par bond that pays interest annually.The required return is currently 13%, and the company is certain it will remain at 13% until the bond matures in 15 years. a.Assuming that the required return does remain at 13% until maturity, find the value of the bond with (1) 15 years, (2) 12 years, (3) 9 years, (4) 6 years, (5) 3 years, (6) 1 year to maturity. b.All else remaining...
P6-15 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12%...
P6-15 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond....
Pecos Manufacturing has just issued a 15 year, 14% coupon interest
rate, 1000-par bond that pays interest annually. The required
return is currently 11%, and the company is certain it will remain
at 11% until the bond mature in 15 years.
a. Assuming that the required return does remain at 11% until
maturity, find the value of the bond with (1) 15 years, (2) 12
years, (3) 9 years, (4) 6 years, (5) 3 years, (6) 1 year to
maturity....
P6-15 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond....
Most questions answered within 3 hours.
-
5. Discuss the use of fault tree analysis (FTA) for risk
assessment (maximum one paragraph).
asked 20 minutes ago -
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 1 hour ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 3 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 4 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 4 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 6 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 6 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 6 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 7 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 8 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 7 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 8 hours ago