Period = 3 months => Coupons are paid quarterly
Number of years = 60/4 = 15 years
Coupon Payment = $21.5
Annual Coupon payment = 21.5*4 = $86
Par Value = $2000
Hence, coupon rate = 86/2000 = 0.043 or 4.3%
Hence, option (c)
Period 59 60 $21.5 $21.5 $21.5 $21.5 $21.5 +$2,000 A corporation issues a bond that generates...
Year 0 1 14 15 $960 $960 $960 $96 0 96 0$2000 dar A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid quarterly O B. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid semiannually OC. a 15-year...
$11.8 $118 8 $11. $118 $1 corporation issues a bond that generates the above cash flows. If the periods shown are 3 months, which of the following best describes that bond O A. a 40-year bond with a notional value of $1,000 and a coupon rate of 4.7% paid monthly O B. a 13-year bond with a notional value of $1,000 and a coupon rate of 2.350% paid annually OC. a 10-year bond with a notional value of $1,000 and...
Period 0 3 29 30 N + + $135.0 $135.0 $135.0 $135.0 $135.0 + $5,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 6 months, which of the following best describes that bond? O A. a 10-year bond with a notional value of $5,000 and a coupon rate of 2.700% paid annually. OB. a 15-year bond with a notional value of $5,000 and a coupon rate of 1.350% paid monthly O C....
A corporation issues a bond that generates the above cash flows. If the periods represent 6-month intervals, which of the following best describes this bond? 0 1 2 3 59 60 $87.50 $87.50 $87.50 $87.50 $5,087.50 A corporation issues a bond that generates the above cash flows. If the periods represent 6-month intervals, which of the following best describes this bond? A 30-year bond with a face value of $5,000 and a coupon rate of 1.75% paid semiannually а. A...
A company issues a ten-year bond at par with a coupon rate of 6.2% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.5%. What is the new price of the bond? O A. $868 OB. $1,042 O c. $1,216 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9%. What is the new price of the bond? O A. $1,065 O B. $888 OC. $1,243 OD. $1,000
A company issues a ten-year bond at par with a coupon rate of 6.1% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left maturity) is 8.6%. What is the new price of the bond? O A. $1,201 O B. $858 OC. $1,029 OD. $1,000
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Lion Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 23 years to maturity. The yield to maturity on this bond is 4.3 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
e Left:2:27:59 Rishabh Setty: Attempt 1 Question 4 (1 point) A 12-year, $100 par value bond with 10% annual coupons (with respect to the par value), payable semiannually, is redeemable for $120. The annual effective yield on the bond is 6% Calculate the amount of premium amortized in the 5th coupon payment. O a) 1.55 Ob) 0.69 Oc) 0.87 Od) 1.38 O e) 0.81