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How much would an investor expect to pay for a $1,000 par value bond with a...
How much would you pay for a Canada Savings Bond with a face value of $1,000...
How much would you pay for a Canada Savings Bond with a face value of $1,000 that offers a 6% coupon (paid in two semi-annual payments starting in six months) and matures in 13 years? Prevailing interest rates are 5% compounded semi-annually. The bond is worth $ . (Round the final answer to the nearest cent as needed. Keep all decimal places as you work through the problem.)
5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon...
5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively. Hint, you can only calculate current yield after you have determined the intrinsic value (price) of the bonds. iii)...
set 1 1.The market price of a semi-annual pay bond is $963.48. It has 14.00 years...
set 1 1.The market price of a semi-annual pay bond is $963.48. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the yield to maturity? 2.A tax-exempt municipal bond with a coupon rate of 9.00% has a market price of 98.64% of par. The bond matures in 14.00 years and pays semi-annually. Assume an investor has a 28.00% marginal tax rate. The investor would prefer otherwise identical taxable bond if it's...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
5. Your broker promises that if you give her $15,000 today she will return $30,000 to...
5. Your broker promises that if you give her $15,000 today she will return $30,000 to you in five years. To the nearest percent, what annual interest rate is being offered? 6. How much money would you have to put away at the end of each year to have $1,250,000 when you retire 42 years from now if you can earn 5% on your money? 7. How much can be accumulated if $500 per month is deposited for the next...
Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon...
Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00 and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. What price will Evin pay for the bond? A. The bid price plus $10 B. The bid price...
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest...
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 7 percent and the markets required yield to maturity on a comparable risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
Question 7 2 pts A coupon bond pays annual interest, has a par value of $1,000,...
Question 7 2 pts A coupon bond pays annual interest, has a par value of $1,000, matures in 5 (five) years, has a coupon rate of 7.45%, and has a yield to maturity of 8.82%. The current yield on this bond is % Do not put the % sign in your answer and round to 2 decimal points. Previous Next
2. Martha is considering a $1,000 par value bond for all the following scenarios. A. What price s...
2. Martha is considering a $1,000 par value bond for all the following scenarios. A. What price should Martha pay for this bond if it has an 8% coupon rate paid semiannually, the bond is priced to yield 7% and it has 13 years to maturity? Is this bond a premium or discount bond? B. What is the YTM if the bond was priced at $926, with a semiannual coupon rate of 10%, and 18 years to maturity? C. How...
Gibson Industries is issuing a $1,000 par value bond with an 8% annual interest coupon rate...
Gibson Industries is issuing a $1,000 par value bond with an 8% annual interest coupon rate that matures in 11 years. Investors are willing to pay $972, and flotation costs will be 9%. Gibson is in the 34% tax bracket. What will be the after-tax cost of new debt for the bond?
How much would you pay for a Canada Savings Bond with a face value of $1,000 that offers a 6% coupon (paid in two semi-annual payments starting in six months) and matures in 13 years? Prevailing interest rates are 5% compounded semi-annually. The bond is worth $ . (Round the final answer to the nearest cent as needed. Keep all decimal places as you work through the problem.)
5a FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively. Hint, you can only calculate current yield after you have determined the intrinsic value (price) of the bonds. iii)...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
Evin is considering buying a bond with a $1,000 par value that has 16 semi-annual coupon payments remaining until the bond matures. The semi-annual interest payments are $15.00 and the annual discount rate is 6 percent. Assume that there are 180 days in the coupon period and that there are 120 days between the settlement date and the next coupon payment date. What price will Evin pay for the bond? A. The bid price plus $10 B. The bid price...
Question 7 2 pts A coupon bond pays annual interest, has a par value of $1,000, matures in 5 (five) years, has a coupon rate of 7.45%, and has a yield to maturity of 8.82%. The current yield on this bond is % Do not put the % sign in your answer and round to 2 decimal points. Previous Next
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