Amount should pay today = Present value of Bond at 2% for 9 years
= $100*0.837
= $83.7
You are considering a savings bond that will pay $100 in 9 years. If the interest...
you are considering a savings bond that will pay $100 in 12years. if the interest rate is 1.7% , what should pay today for the bond
You are considering a 10-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 6.09%, how much should you be willing to pay for the bond? Do not round intermediate calculations. Round your answer to the nearest cent.
You are considering a 15-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.05%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.
You are considering a 30-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 7.1075%, how much should you be willing to pay for the bond? Do not round intermediate calculations. Round your answer to the nearest cent.
(Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of retum is 14 percent, what is the value of the bond? How would your answer change the interest wore and annually? a. If the interest is paid semiannually, the value of the bond is S. (Round to the nearest cent) b. If the interest is paid annually, the value of the bond...
(Bond valuation) Flora Co.'s bonds, maturing in 9 years, pay 7 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 9 percent, what is the value of the bond? How would your answer change if the interest were paid annually? a. If the interest is paid semiannually, the value of the bond is $ . (Round to the nearest cent.)
You will receive $100 from a zero-coupon savings bond in 3 years. The nominal interest rate is 8%. a. What is the present value of the proceeds from the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the inflation rate over the next few years is expected to be 3%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round your answer...
You will receive $100 from a zero-coupon savings bond in 4 years. The nominal interest rate is 8.20%. a. What is the present value of the proceeds from the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the inflation rate over the next few years is expected to be 3.20%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round your answer...
You will receive $100 from a zero-coupon savings bond in 3 years. The nominal interest rate is 7.80%. a. What is the present value of the proceeds from the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present Value: b. If the inflation rate over the next few years is expected to be 2.80%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round...
you will receive $100 from a zero-coupon savings bond in 2 years. The nominal interest rate is 8.10%. If the inflation rate over the next few years is expected to be 3.10%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places.) -answer is $94.08.. but my Q is this.... d. Show that the real payoff from the bond [from part (b)] discounted...