Oil Wells offers 5.6 percent coupon bonds with annual payments and a yield to maturity of...
Oil Wells offers 5.6 percent coupon bonds with annual payments and a yield to maturity of 6.94 percent. The bonds mature in seven years. The face value is $1,000. These bonds sell at:
a. premium b. discount c. par
Homework Answers
Annual coupon=1000*5.6%=56
Hence current price=Annual coupon*Present value of annuity factor(6.94%,7)+$1000*Present value of discounting factor(6.94%,7)
=56*5.40058109+1000*0.625199672
=$927.63(Approx)
NOTE:
1.Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=56[1-(1.0694)^-7]/0.0694
=56*5.40058109
2.Present value of discounting factor=1000/1.0694^7
=1000*0.625199672
Hence since the current value of bonds is less than the face value;it is selling at a discount.
Add Answer to:
Oil Wells offers 5.6 percent coupon bonds with annual payments
and a yield to maturity of...
Oil Wells offers 5.6 percent coupon bonds with annual payments and a yield to maturity of...
Oil Wells offers 5.6 percent coupon bonds with annual payments and a yield to maturity of 6.94 percent. The bonds mature in seven years. The face value is $1,000. What is the current yield?
miannual payments and a yield to ars. What is the market price per 2) Oil Wells...
miannual payments and a yield to ars. What is the market price per 2) Oil Wells offers 6.5 percent coupon bonds with semiannual payments maturity of 6.94 percent. The bonds mature in seven years. What is the me bond if the face value is $1,000? A) $996.48 B) $913.48 C) $989.70 D) $975.93 F) 590260 miannual payments and a yield to ars. What is the market price per 2) Oil Wells offers 6.5 percent coupon bonds with semiannual payments maturity...
Chapman Closers Inc, offers 7.0% percent coupon bonds with annual payments and a yield to maturity...
Chapman Closers Inc, offers 7.0% percent coupon bonds with annual payments and a yield to maturity of 7.25% percent. The bonds mature in seven years. What is the market price per bond if the par value is $1,000? Answer Score Maximum Score 5.00
Oil Well Supply offers 7.4 percent coupon bonds with semiannual payments and a yield to maturity...
Oil Well Supply offers 7.4 percent coupon bonds with semiannual payments and a yield to maturity of 10.9 percent. The bonds mature in 7 years. What is the market price per bond if the face value is $1,000? Answer The outstanding bonds of The River Front Ferry carry a 8.1 percent coupon. The bonds have a face value of $1,000, 10 years to maturity, and are currently quoted at $1215.19. What is the current yield on these bonds? Provide your...
Highlander, Inc. offers 6.5% coupon bonds with annual payments and a yield to maturity of 6.94...
Highlander, Inc. offers 6.5% coupon bonds with annual payments and a yield to maturity of 6.94 percent. The bonds mature in seven years. How much would you be willing to pay for one bond? $913.48 $902.60 $989.70 $996.48 $975.93
20) - 20) Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price...
20) - 20) Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $742. The yield to maturity is 13.2 percent and the face value is $1,000. Interest is paid annually. How many years is it until these bonds mature? A) 7.41 years B) 8.32 years C) 4.19 years D) 5.73 years E) 6.16 years 19) 19) Oil Wells offers 6.5 percent coupon bonds with semiannual payments and a yield to maturity of 6.94 percent. The...
3- Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to...
3- Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1.000?
when the coupon the All else constant, a bond will sell at yield to maturity a...
when the coupon the All else constant, a bond will sell at yield to maturity a premium; less than a premium; equal to a discount; less than D. a discount; higher than par; less than с. 4 The Walthers Company has a semi-annual coupon bond outstanding tanding. An increase in the market rate of interest will have which of the following effects which of the following effects on the bond? increase the coupon rate decrease the coupon rate increase the...
Wine and Roses, Inc., offers a bond with a coupon of 9.0 percent with semiannual payments and a yield to maturity o...
Wine and Roses, Inc., offers a bond with a coupon of 9.0 percent with semiannual payments and a yield to maturity of 9.78 percent. The bonds mature in 7 years. What is the market price of a $1,000 face value bond? $1,035.39 $96112 $1,512.53 $1,409.71 $1,448.59
Wine and Roses, Inc. offers a 5.5 percent coupon bond with semiannual payments and a yield...
Wine and Roses, Inc. offers a 5.5 percent coupon bond with semiannual payments and a yield to maturity of 5.90 percent. The bonds mature in 6 years. What is the market price of a $1,000 face value bond?
miannual payments and a yield to ars. What is the market price per 2) Oil Wells offers 6.5 percent coupon bonds with semiannual payments maturity of 6.94 percent. The bonds mature in seven years. What is the me bond if the face value is $1,000? A) $996.48 B) $913.48 C) $989.70 D) $975.93 F) 590260 miannual payments and a yield to ars. What is the market price per 2) Oil Wells offers 6.5 percent coupon bonds with semiannual payments maturity...
Chapman Closers Inc, offers 7.0% percent coupon bonds with annual payments and a yield to maturity of 7.25% percent. The bonds mature in seven years. What is the market price per bond if the par value is $1,000? Answer Score Maximum Score 5.00
Oil Well Supply offers 7.4 percent coupon bonds with semiannual payments and a yield to maturity of 10.9 percent. The bonds mature in 7 years. What is the market price per bond if the face value is $1,000? Answer The outstanding bonds of The River Front Ferry carry a 8.1 percent coupon. The bonds have a face value of $1,000, 10 years to maturity, and are currently quoted at $1215.19. What is the current yield on these bonds? Provide your...
20) - 20) Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $742. The yield to maturity is 13.2 percent and the face value is $1,000. Interest is paid annually. How many years is it until these bonds mature? A) 7.41 years B) 8.32 years C) 4.19 years D) 5.73 years E) 6.16 years 19) 19) Oil Wells offers 6.5 percent coupon bonds with semiannual payments and a yield to maturity of 6.94 percent. The...
3- Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1.000?
when the coupon the All else constant, a bond will sell at yield to maturity a premium; less than a premium; equal to a discount; less than D. a discount; higher than par; less than с. 4 The Walthers Company has a semi-annual coupon bond outstanding tanding. An increase in the market rate of interest will have which of the following effects which of the following effects on the bond? increase the coupon rate decrease the coupon rate increase the...
Wine and Roses, Inc., offers a bond with a coupon of 9.0 percent with semiannual payments and a yield to maturity of 9.78 percent. The bonds mature in 7 years. What is the market price of a $1,000 face value bond? $1,035.39 $96112 $1,512.53 $1,409.71 $1,448.59
Most questions answered within 3 hours.
-
Leave thourough feedback for this comment please.
A project management should posses the following communication
skills:...
asked 14 seconds ago -
An instructor's reference to a basketball player's defensive
performance as "outstanding" is an example of __________...
asked 15 seconds ago -
There are 3 models that generate 3 below predicted values for
CAD
Model1: $1.00
Model2: $1.112...
asked 4 minutes ago -
Please note this is a question for my midterm so answer
seriously and make sure it...
asked 9 minutes ago -
Conduct a search of "the difference between marketing strategy
and tactics" and scan the results. Select...
asked 14 minutes ago -
what could be done to increase the likelihood of transfer of
training if the work environment...
asked 15 minutes ago -
Consider the following argument: It’s too hot or it’s too cold.
If it’s too cold, I’ll...
asked 16 minutes ago -
Steve's Specialties, Inc. paid its dividend yesterday, which as
$ 3.00. The dividend has been growing...
asked 31 minutes ago -
We are trying to decide a warehouse location to minimize our
costs of moving supplies to...
asked 31 minutes ago -
Create a SWOT Analyst diagram on topic Disaster Recovery Plan
for an commercial business.
asked 30 minutes ago -
How do we make sure that our professional judgment as an auditor
is "free" from bias?
asked 48 minutes ago -
discuss the design features of one of the first point-
factor job evaluation methods that continues...
asked 52 minutes ago