Calculate for each of the following bonds the price per $1,000 of par value assuming semiannual coupon payments.
Bond | Coupon Rate (%) | Years to Maturity | Yield (%) |
A | 8 | 9 | 7 |
B | 9 | 20 | 9 |
C | 6 | 15 | 10 |
D | 0 | 14 | 8 |
Calculate for each of the following bonds the price per $1,000 of par value assuming semiannual...
A bond has the following terms: January 1, 2000, settlement date January 1, 2020, maturity date 10 percent semiannual coupon 12 percent yield $100 redemption value Frequency is semiannual 30/360 basis =PRICE("1/1/2000","1/1/2020",10%,12%,100,2,0)=84.954 Bond Problems 1. Calculate the price of a 20-year 10% coupon bond with a par value of $1,000. The bond should be price to provide a yield to maturity of 11%. Interest payments are paid semiannually. 2. Calculate the price of a 20-year 10% coupon bond with a...
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)...
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...
Bond prices. Price the bonds from the following table with semiannual coupon payments: a. Find the price for the bond in the following table: (Round to the nearest cent.) Coupon Rate Par Value $1,000.00 Years to Maturity 15 Yield to Maturity 10% Price $ 5% Bond prices. Price the bonds from the following table with semiannual coupon payments: a. Find the price for the bond in the following table: (Round to the nearest cent.) Years to Yield to Coupon Nuri...
Bond prices. Price the bonds from the following table with semiannual coupon payments: E. a. Find the price for the bond in the following table: (Round to the nearest cent.) Years to Yield to Coupon Par Value $1,000.00 129 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Years to Matu Price 25 ? Par Value $1,000.00 $5,000.00 $5,000.00 $1,000.00 Coupon Rate 12% 6% 9% Yield to Maturity 5% 9% 10% 11% ?...
1.A 30-year, $1,000 par value bond has a 9.5% annual payment coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what willthe price be 9 years from now?2.Knapp Bros, LLC is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callableafter 7 years at a 7% call premium, how would this affect their required rate of...
1. For each of the following annuities calculate the annual cash flow Present Value Years Interest Rate $24,500 6 11% $19,700 8 7% 2. You deposit $5,000 at the end of each year for 20 years into an accouninterest, how much money will you have in the account in 20 years? 3. Lycan Inc. has 7% coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments and have a par value of $1,000. If...
A bond has a par value of $1,000, a current yield of 7.13 percent, and semiannual coupon payments. The bond is quoted at 96.88. What is the coupon rate of the bond? Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.31 percent and semiannual payments. The bond matures in 19 years, with a yield to maturity of 3.93 percent, and a par value of $5,000. What is the market price of the bond?
8. Coupon Rates [LO2] McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $1,045. The bonds make semiannual payments. What must the coupon rate be on these bonds?10. Valuing Bonds [LO2] Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.4 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond...
Which of the following $1,000 face value bonds has a 10% yield, assuming semiannual coupon payments of 8%? 1) a 5 year maturity bond selling for $964.54 2) a 10 year maturity bond selling for $875.39 3) a 20 year maturity bond selling for $828.36