If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...

Question

Question

If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...

If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and the yield to maturity of 4% sells for $1,067.89, what is its annual coupon rate? A. 4% B. 5% C. 2% D. 3% E. 2.5%

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Face Value = 1000 Time = 8x2= 16 periods gton = 4/= 2% Present value = 1067.89 Using financial calculator, fu=1000 N=16 yy=2

Add a comment

Answer 2

Similar Homework Help Questions

25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual...

25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and...

The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to maturity is 8.9% APR, compounded semiannually. What is its price? The price of the bond is $ . (Round to the nearest cent.) Suppose a five-year, $1,000 bond with annual coupons has a price of $901.23 and a yield to maturity of 5.9%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and...

A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 4%, what is its Macaulay Duration? Answer in years, rounded to three decimal places

1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and...

1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and eight years to maturity. The bond makes coupon payments every six months, and is currently priced at $1,055.85. What is the yield to maturity on this bond? Select one: a. 3.54% b. 6.95% c. 7.07% d. 7.49% e. 14.99% 2. What is the duration of a five-year bond with coupon rate of 8%, yield to maturity of 6%, semi-annual coupon payment, and face value...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.40%, (Do not round intermediat e calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $1,020? Yield to maturity : 8234: % b. What is the yield to maturity if the bond is selling for $1,000? Yield to maturity 8.4001 % c. What is the...
Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for...

Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,135.41. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 8% APR, what will the bond's price be? Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $1,135.41. a. What is the bond's yield to maturity...

Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for...

Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for $1,100. (Assume that the bond has just been issued.) 20 Basic Input Data: Years to maturity: Periods per year: Periods to maturity: Coupon rate: Par value: Periodic payment: Current price 8% $1,000 $1,100 c. What would be the price of a zero coupon bond if the face value of the bond is $1,000 in 3 years and if the yield to maturity of similary...
A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 6%. a. What is the bond’s yield to maturity if the bond is selling for $1,110? Enter annual yield to maturity as your answer. (Do not round intermediate calculations. Round your answer to 3 decimal places.) Annual yield to maturity % b. What is the bond’s yield to maturity if the bond is selling for $1,000? Enter annual yield to maturity...
Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price =...

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price = $1,100 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,030.00 What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date? A. 0.62% B. 0.63% C. 2.75% D. -0.31% E. 2.73%

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.20%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $940? b. What is the yield to maturity if the bond is selling for $1,000? c. What is the yield to maturity if the bond is selling for $1,145?

If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...

Homework Answers

Add Answer to:
If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...

Post as a guest

Earn Coins

25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual...

The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and...

A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and...

1. A firm has a bond issue with face value of $1,000, 8% coupon rate, and...

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

Suppose a 10-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for...

Bond Valuation A 20-year, 8% semiannual coupon bond with a par value of $1,000 sells for...

A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price =...

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...

Homework Answers

Add Answer to: If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...

Post as a guest

Earn Coins

Add Answer to:
If a bond with a face value of $1,000, 8 years to maturity, semiannual coupons, and...