The current market price is influenced by its time to maturity, its yield to maturity and expectations by the investors of the amount to be received.
Thus the answer is d) all of the above
The current market price of the bond is a function of: the dollar amounts to be...
Calculate the market price of a $1,000 face value bond under the following conditions. Assume interest is paid semiannually. Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answers to the nearest cent. Current Market Time Until Maturity Coupon Rate Market Price Rate 12% 15 years 10 % $ 8 5 12 9 25 6 30 14 6
The Lo Sun Corporation offers a 5.7 percent bond with a current market price of $830.50. The yield to maturity is 8.15 percent. The face value is $1,000. Interest is paid semiannually. How many years until this bond matures? 20.77 years 10.39 years 5.19 years 29.14 years 19.96 years
16. $_____________(rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 bears interest at the rate of 6.9%. The current market rate of interest is 7.0%. Determine the issue price of this annual bond.
what happens to the current price of a bond if the bond has a larger par value no change cannot be determined without knowing the market interest rate increase decrease
Problem 7-4 Calculate the market price of a $1,000 face value bond under the following conditions. Assume interest is paid semiannually. Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answers to the nearest cent. Current Market Coupon Rater Time Until Maturity Market Price Rate 10 % S 1,230.60 X 12 % 15 years 12 10 25 6 15 30 6 Feedac TOw My rk Incomect Longly Trucking is issuing...
12- You are interested in purchasing a 30-year, semi-annual bond with a current market price of $1015.75. If the yield to maturity is 6.85% and the face value is $1,000, what must the coupon rate be on the bond? (6.97%) 13- Suppose a 7.75% coupon bond with 15 years to maturity and a face value of $1,000 presently has a yield to maturity of 7.25%. Assuming annual interest payments, what is the price of the bond? ($1,044.83)
22) The market price of a bond with 12 years until maturity and an annual coupon rate of 8% increased yesterday. Which one of these may havecaused this price increase? 22) AJ The issuing firm announced that its annual earnings met investor expectations. B) The bond's rating was downgraded. C) The issuing firm announced the next interest payment. D) Market interest rates decreased. 23) Which one of the following is fixed for the life of a given bond? B) Coupon...
Other things being equal, what happens to the current price of a bond if the bond has a larger par value? Decrease. Increase. No change. Cannot be determined without knowing the market interest rate.
Means of change y ou 1) What is the real will the band wa esta bond that 15 per year? s s) b) -8% 17) According to Say's Law, total output is a function of a) Labor; Utility b) Utility: Capital e) Technology: Capital d) Labor: Capital 18) When hond investors take Interest Rate Risk into consideration before purchasing bonds, they generally find that this risk tends to _when market interest rates are higher, Whe bond investors take Duration Risk...
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Price / Cash Flow b. Market/Book Value Prie/aming pee Share d. CAC Labs 6) Which is not a potential limitation of ratio analysis? (point) a. Comparison with industry averages b. Seasonal factors c. Same account practices d. None of above 7) Which of the following statements is FALSE? (1 point) a. The process of moving a value or cash flow forward in time is known as compounding b. The effect of earning interest...