Coupon payment = 5.5% / 4 * 10000 = 137.50
I = 11% / 4 = 2.75% per quarter
t = 12 quarters
Let price be P
P = 137.50 * (P/A, 2.75%,12) + 9800 * (P/F, 2.75%,12)
= 137.50 * 10.104204 + 9800 * 0.722134
= 8466.25 ~ 8466 (Nearest Dollar)
Question 6 Leann just sold a $10,000 par value bond for $9,800. The bond interest rate...
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann’s yield on the bond was 10.5% per year compounded quarterly. Determine the price she paid when she purchased the bond.
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 7% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann’s yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond.
Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 15% per year compounded quarterly. Determine the price she paid when she purchased the bond. $
John just sold a $10,000 par value bond for $9,000. The bond interest rate was 8% per year. John owned the bond for 15 years. The 1st interest payment she received was 1 year after he bought the bond. He sold it immediately after receiving his 15th interest payment. John's yield on the bond was 16.5% per year. Determine the price he paid when he purchased the bond.
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 5 years, selling the bond immediately after you receive the interest payment If your desired nominal yield is 2% per year compounded semiannually, what will be your minimum selling price for the bond? $ Carry all interim...
You have just purchased a municipal bond with a $10.000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6,6% per year payable semiannually. You plan to hold the bond for 5 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 11% per year componded semiannually, what will be your minimum selling price for the bond? $ Carry all interim...
Question 1 You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 6 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 6.5% per year compounded semiannually, what will be your minimum selling price for the bond? Carry all...
Question 3 x Your answer is incorrect. Try again. You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 6% per year compounded semiannually, what will سل* be your...
4. You h ave purchased a 10,000-dollar bond par value for 9400 dollars. You purchased interest payment. The it immediately after the previous owner received a quarterly bond rate is 8 % per year payable quarterly. You will hold the bond 5 years and sell ayment at that time. You desire a yield of 16 % per immediately after receiving thep -compounded quarterly. What will be the minimum selling price of the bond to achieve this goal?
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 6 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 2% per year compounded semiannually, what will be your minimum selling price for the bond?