price of coupon = Coupon payment per period * [1-(1+i)^-n]/i + par value/(1+i)^n
i = interest rate per period
n = number of periods
=>
price = 52.5/2 * [1-(1+7.5%/2)^-30]/(7.5%/2) + 1000/(1+7.5%/2)^30
= 799.42
0/2.5 pts Question 29 Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% coupon rate with...
Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% coupon rate with interest paid semiannually, and a par value of $1,000. The nominal required rate of return on these bonds is 7.75%. What is the bond’s intrinsic value? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
Big Manufacturer Corporation's bonds have a 10-year maturity, a 5.25% coupon rate with interest paid semiannually, and a par value of $1,000. The nominal required rate of return on these bonds is 7.50%. What is the bond’s intrinsic value? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
ABC Corporation's bonds have a 10-year maturity, a 8.25% coupon rate with interest paid semiannually, and a par value of $1,000. If your nominal required rate of return on these bonds is 7.75%, what is the maximum price you should be willing to pay for the bond? Note: Enter your answer rounded to the nearest cent. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer...
Question 13 5 pts Colton Corporation's semiannual bonds have a 12-year maturity, an 7.50% nominal coupon paid semiannually and sell at their $1.000 par value. The firm's annual bonds have the same risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is callable. To provide the same effective annual yield (EFF%), at what price should the annual payment bonds sell? Hint: Calculate the EFF% for the semiannual bond's coupon rate, and then use...
Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.30%, based on semiannual compounding. What is the bond’s price? a. $1,200.05 b. $1,164.05 c. $948.04 d. $1,224.05 e. $1,500.06
Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a par value of $1,000. The bonds are currently selling at a premium price of $1,250 in the bond market. What is their yield to maturity (YTM)? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
Question 12 5 pts Moody Corporation's bonds have a 15-year maturity, a 7.25% coupon paid semiannually, and a par value of $1,000. If the going market interest rate for bonds of similar risk and maturity is 5.10% (based on semiannual compounding), what is the bond's price? Your answer should be between 1075.00 and 1275.00, rounded to 2 decimal places, with no special characters. Question 13 5 pts MacBook Air
Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.30%, based on semiannual compounding. What is the bond’s price? a. $1,200.05 b. $1,164.05 c. $948.04 d. $1,224.05 e. $1,500.06 A. a B. b C. c D. d E. e
Colton Corporation's semiannual bonds have a 12-year maturity, an 9.90% nominal coupon paid semiannually. and sell at their $1,000 par value. The firm's annual bonds have the same risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is callable. To provide the same effective annual yield (EFF%), at what price should the annual payment bonds sell? Hint: Calculate the EFF% for the semiannual bond's coupon rate, and then use it as the YTM...
U.S. Treasury 30 year maturity, zero coupon bonds are currently selling in the marketplace with a yield to maturity of 7.00%. Even though the bonds have a coupon rate of 0.00%, please assume semi–annual compounding, which is the bond market convention? If inflation increased unexpectedly, forcing the nominal required rate of return on these Treasury bonds to increase by 1.00% to 8.00%, by what dollar amount would the current market price of these bonds decrease? Enter your answer rounded to...