Bond Par Value = $1,000
Time to Maturity = 15 years
Interest Rate = 14% semi-annual compounding
Present Value of Zero Coupon Bond = 1000/(1.07)30
Present Value of Zero Coupon Bond = $131.37
Assuming semiannual compounding, a 15-year zero coupon bond with return of 14.0% would be priced at...
25. Assuming semiannual compounding, a 15-year zero coupon bond with a par value of $1,000 and a required return of 12.8% would be priced at _________. $164.20 $939.85 $155.51 $886.52
What is the price of a 15-year, zero coupon bond paying $1,000 at maturity, assuming semiannual compounding, if the YTM is 6 percent?
1. What is the price of a 15-year, zero coupon bond paying $1,000 at maturity, assuming semiannual compounding, if the YTM is 6 percent?
A 20-year, zero-coupon bond was recently being quoted at 29.853% of par. Find the current yield and the promised yield of this issue, given that the bond has a par value of $1,000. Then, using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 8.230%. The current yield on this bond is %. (Round to the nearest whole percent.) The promised yield of this issue is %. (Round to...
Assume semiannual compounding, what is the price of a 6-year, zero coupon bond paying $1,000 at maturity if the YTM is (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Price of the Bond a. 4 percent $ b. 9 percent $ c. 14 percent $
What is the expected return on a 1.97% semiannual coupon bond with a par value of $1,000 that is currently priced in the market at $894.21 but is expected to rise (or fall) to $1,091.36 within a 6-year holding period?
What would be the current price of a zero-coupon bond with a par value of $1,000, a maturity of 15 years and a yield-to-maturity of 8%? Assume semiannual compounding.
Using semiannual compounding, find the prices of the following bonds: a. A 10.9%, 15-year bond priced to yield 9.39%. b. A 5.5 %, 10-year bond priced to yield 7.1 %. c. An 11.8 %, 20-year bond priced at 10.2 %. Repeat the problem using annual compounding. Then comment on the differences you found in the prices of the bonds.
What is the expected return on a 7.14% semiannual coupon bond with a par value of $1,000 that is currently priced in the market at $786.41 but is expected to rise (or fall) to $1,084.65 within a 5-year holding period?
What is the dollar price of a zero coupon bond with 12 years to maturity, semiannual compounding, and a par value of $1,000, if the YTM is: 3%, 7%, 11%