Question 24 (1 point) A company's bonds have a face value of $1,000. The bonds carry...

Question

Question

Question 24 (1 point) A companys bonds have a face value of $1,000. The bonds carry a 7% coupon, pay interest semiannually,

Answer 1

Answer #1

Bond Par Value = $1,000

Coupon Rate = 7% semi-annually

Time to Maturity = 9 years

YTM = 7.26%

Calculating Present Value of Bond,

Using TVM Calculation,

PV = [FV = 1,000, T = 18, PMT = 35, I = 0.0726/2]

PV = $983.04

So,

Bond value = $983.04

Answer 2

Similar Homework Help Questions

1) New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 20...

1) New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 20 years, and have a 5.8 percent coupon. The current price is quoted at 103.25. What is the yield to maturity? 2) American Hat has $1,000 face value bonds outstanding with a market price of $1,150. The bonds pay interest semiannually, mature in 8 years, and have a yield to maturity of 5.98 percent. What is the current yield? Please explain with simple formula
Question 19 4 pt Barton LLC. bonds have a face value of $1,000. The bonds carrya 6 percent coupon, pay interest sem...

Question 19 4 pt Barton LLC. bonds have a face value of $1,000. The bonds carrya 6 percent coupon, pay interest semiannually, and mature in 16 years. What is the current price of these bonds if the yield to maturity is 5.82 percent? $845.87 $994.56 $1,017.85 $1,018.58 $1,020.00 Question 20 4 pt
The $1,000 face value bonds of Universe International have coupon of 5 percent and pay interest...

The $1,000 face value bonds of Universe International have coupon of 5 percent and pay interest semiannually. Currently, the bonds are quoted at 108 and mature in 12 years. What is the yield to maturity?

1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The...

1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...
Ten years ago, Simply Splendid Corp. issued 40 year bonds with a $1,000 face value and...

Ten years ago, Simply Splendid Corp. issued 40 year bonds with a $1,000 face value and a 7 percent coupon rate, paid semiannually. Bond of this risk currently have a yield to maturity of 9 percent. How much would you expect to pay for one of these bonds today? Harley Group has outstanding $1,000 face value bonds that have a 6.5 percent coupon rate, paid semiannually, and mature in 18 years. They are currently selling for $935.15. What is their...
New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 14.5 years,...

New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 14.5 years, and have a 4.5 percent coupon. The current price is quoted at 97.6% of par. What is the yield to maturity?

The $1,000 face value bonds of Galaxies International have coupon of 6.45 percent and pay interest...

The $1,000 face value bonds of Galaxies International have coupon of 6.45 percent and pay interest semiannually. Currently, the bonds are quoted at 103.4 and mature in 4 years. What is the yield to maturity? 4.88 percent 6.02 percent 7.18 percent 6.79 percent 5.49 percent
Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000...

Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semiannually. The price of the bonds is $1,050. The bonds are callable in 5 years at a call price of $1,050. Round your answers to two decimal places. What is their yield to maturity? % What is their yield to call? %
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)...

2. Country Sun Foods' bonds have 7 years remaining to maturity. The bonds have a face...

2. Country Sun Foods' bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8 percent. They pay interest annually and have a 9% coupon rate. What is their current yield? 8.20012 ATTON a. 8.55% b. 8.95% of the 92118121 eSPI12 c. 9.41% d. 9.95% e. $1,052.06 e (9wans uoy oloi Tecunltd Corporation has issued bonds that have a 9 percent coupon rate, payable semiannually. The bonds mature in...