Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Question

Question

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have an

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Period	Discounting Factor [1/(1.047^period)]	Discounting Factor Annuity (Sum of discounting factor & all previous discounting factors)
1	0.955109838
2	0.912234802
3	0.871284434
4	0.832172334
5	0.794815983
6	0.759136564
7	0.725058801
8	0.692510793
9	0.661423871
10	0.631732446
11	0.603373874
12	0.576288323
13	0.550418647
14	0.525710264
15	0.502111045
16	0.479571199
17	0.45804317
18	0.437481538
19	0.41784292
20	0.399085884
21	0.381170854
22	0.364060032
23	0.347717318	13.87835493

Current Price of the Bond = PV of ALL Coupon Payments + PV of Maturity Value

= [(1000*0.038)*PV Annuity Factor for 23 years]+[1000*PV factor of 23rd year]

= [38*13.87835]+[1000*0.34772]

= 527.3773+347.72

= $875.0973

Add a comment

Answer 2

Similar Homework Help Questions

Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupn payments. suppose a german company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 3.8 percent paid annually. if the yield maturity 4.7%, what is the current price of the bond?
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 6.3 percent paid annually. If the yield to maturity is 7.4 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bond price...
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1000, 15 years to maturity, and a coupon rate of 77 percent paid annually If the yield to maturity is 8.8 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) Bond price

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 20 years to maturity, and a coupon rate of 6.6 percent paid annually. If the yield to maturity is 7.7 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 6.3 percent pald annually. If the yield to maturity is 7.4 percent, what is the current price of the bond? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 20 years to maturity, and a coupon rate of 7.8 percent paid annually. If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 10 years to maturity, and a coupon rate of 6.4 percent paid annually. If the yield to maturity is 7.5 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 6.3 percent paid annually. If the yield to maturity is 7.4 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon rate of 6.1 percent paid annually. If the yield to maturity is 7.2 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 6.3 percent paid annually. If the yield to maturity is 7.4 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

Homework Answers