Question 7 10 pts A bond has a $10K face value and matures after 8 years....
What is the face value of a simple bond that matures in one year if the price of the bond is $1,900 and the interest rate of the bond is 8 percent? There are no intermittent interest payments. Express your answer in dollars. (Do not include the dollar sign or any commas in your answer.)
A convertible bond is selling for $967, matures in 15 years, has a $1,000 face value, pays interest semiannually, and has a coupon rate of 8 percent. Similar non-convertible bonds are priced to yield 4.25 percent per six months. The conversion ratio is 20. The stock currently sells for $47.50 a share. Calculate the convertible bond's option value.
6. Consider two bonds. Each has a face value of $100 and matures in 10 years. One has no coupon payments, and the other pays $10 per year. a. Calculate the price of each bond if the interest rate is 3 percent and if the inter- est rate is 6 percent. b. When the interest rate rises from 3 per- cent to 6 percent, which bond price falls by a larger percentage? Explain why.
Question 7 2 pts A coupon bond pays annual interest, has a par value of $1,000, matures in 5 (five) years, has a coupon rate of 7.45%, and has a yield to maturity of 8.82%. The current yield on this bond is % Do not put the % sign in your answer and round to 2 decimal points. Previous Next
A zero coupon bond has a face value of $1,000 and matures in 6 years. Investors require a(n) 7.2 % annual return on these bonds. What should be the selling price of the bond? If the nominal rate of interest is 12.21 % and the real rate of interest is 8.76 % what is the expected rate of inflation? A Ford Motor Co. coupon bond has a coupon rate of 6.75%, and pays annual coupons. The next coupon is due...
A corporate bond with a face value of $1,000 matures in 4 years and has a coupon rate of 6.25 percent. The current price of the bond is $932 and interest is paid semiannually. If inflation averaged 3.26 percent, what was the real rate of return?
A 7% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 7.5026%. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answers to two decimal places. %
1) A company has an 8.8 percent coupon bond outstanding that matures in 12 years. The bond pays interest quarterly. What is the market price per bond if the face value is $1,000 and the yield to maturity is 5.4 percent? 2) If we require a 13% real return and we expect inflation to be 7%, what is the nominal rate using the accurate Fisher Effect? 3) A company is expected to increase dividends by 20% in one year and...
Question 2 (1 point) Bond B matures in 23 years, has a face (par) value of $1.000, and has a yield to maturity of 9.50%. Bond B is a zero coupon bond. What is the value of the bond? (Express your answer to the nearest cent. i.e one thousand dollors would be entered as 1000.00) Your Answer
A company has an 8% bond that has a face value of $1000 and matures in 30 years. Assume that coupon payments are made semi-annually. The bonds are callable after 20 years at 108% of par value. What is the value of the bond if rates drop immediately to 6%?