The bond coupon rate and the nominal rate of interest both are equal to 10%. Due to this reason, the bond will always be sold at its face value. Therefore the price of the bond will be $10,000
Select 10000.
A 20-year municipal bond with a face value of $10,000 was issued 5 years ago. Its...
1). ABC Company issued a 20-year quarterly pay bond 4 years ago. The face value of the bond is $1,500 and the coupon rate is 5%. The current market rate on comparable bonds is 4%. At what price would you value the bond? 2). The RBCAB Corporation just paid a dividend of $1.13 per share. The company's CFO expects that the dividend will remain at that level for three years. After year three, it is expected that the dividend will...
1) A 20-year bond pays interest at 4% and was issued 12 years ago with a face value of $2,000. Semi-annual interest. What is the bond's price today if the interest rate on comparable new bond issues is 6%? 2) A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has a face value of $1,000 and carries a coupon rate of 5%. Semi-annual interest. Approximately what is the bond market yield today if the...
3. You are considering buying a 20-year bond that was issued 2 years ago. Its coupon rate is 4% and interest rates are made semiannually. Its face value is $1000. If the current market interest rate is 6.09%, what should be the bond's price?
6-5 Eleven years ago, Elite Elements issued a 15-year bond with a $1,000 face value and a 5 percent coupon rate of interest (paid semiannually). If investors require a return equal to 7 percent to invest in similar bonds, what is the current market value of Elite's bond?
1. (Coupon bond price) Consider a 20 year bond that sells at face value (its price is equal to the final payment you get for it in 20 years). The nominal interest rate is expected to be fixed at 4% and is equal to the implicit rate on the bond. Consider now a bond with the following characteristics: maturity equal to 5 years, annual coupon payments equal to 100 dollars and face value of 1000 dollars. iii) If the nominal...
bond X and bond Y. Bond X has a face value of $1,000 and 10 years to maturity and has just been issued at par. It bears the current market interest rate of 7% (i.e. this is the yield to maturity for this bond). Bond Y was issued 5 years ago when interest rates were much higher. Bond Y has face value of $1,000 and pays a 13% coupon rate. When issued, this bond had a 15-year, so today its...
bond you bought a bond 6 years ago for $3,500. It has a $4,000 face value and a nominal annual 10% bond rate, paid quarterly. You'd like to sell it now and get a nominal annual yield of 8%. How much should you sell it for You bought a bond 6 years ago for $3,500. It has a $4,000 face value and a nominal annual 10 % bond rate, paid quarterly (so iR pays 2.5% of the face value each...
A government bond with a face value of $1,000 was issued eight years ago there are seven years remaining unit maturity. The bond pays semi-annual coupon payments of $45, the coupon rate is 9% p.a. paid twice yearly and rate in the marketplace are 9.6% p.a. compounded semi annually. What is the value of the bond today?
A corporate bond with a face value of $100,000 was issued six years ago and there are nine years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 8% p.a. compounded semi-annually. What is the value of the bond today?
A 1o year bond was issued three years ago. It has a Face Value of $1000 and makes coupon payments every six ite arrentyield to maturity is 66% pa cor p this bond sell at a premium discount or at par today? months urang sem-anuary wil o a par b. discount O c not enough information provided to determine