Question

A bond with face value of $1,000 mature in 12 years. The bond has 8 percent...

A bond with face value of $1,000 mature in 12 years. The bond has 8 percent annual coupon. If YTM remains at 6.0 percent, what will be the price of the bond two years from today?

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
A bond with face value of $1,000 mature in 12 years. The bond has 8 percent...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon...

    A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. What is its yield to maturity (YTM)? Round your answer to two d Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

  • A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon...

    A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity (YTM)? Round your answer to two decimal places.     % Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  

  • A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon...

    A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity (YTM)? Round your answer to two decimal places.     % Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  

  • 7.02 A bond has a $1,000 par value, 12 years to maturity, and a 9% annual...

    7.02 A bond has a $1,000 par value, 12 years to maturity, and a 9% annual coupon and sells for $1,110. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. b. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

  • 7.2 A bond has a $1,000 par value, 8 years to maturity, and a 6% annual...

    7.2 A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930. What is its yield to maturity (YTM)? Round your answer to two decimal places.     % Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  

  • A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon...

    A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon and sells for $980. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. % b. Assume that the yield to maturity remains constant for the next five years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

  • 1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The...

    1) A $1,000 face value bond currently has a yield to maturity of 6.03 percent. The bond matures in thirteen years and pays interest semiannually. The coupon rate is 6.25 percent. What is the current price of this bond? 2) The $1,000 face value bonds of Galaxies International have coupon of 5.5 percent and pay interest semiannually. Currently, the bonds are quoted at 98.02 and mature in 12 years. What is the yield to maturity? 3) Variance Logistics wants to...

  • (Bond valuation) Calculate the value of a bond that will mature in 17 years and has...

    (Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 11 percent, and the investor's required rate of return is 14 percent The value of the bond is S828.27 (Round to the nearest cent. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1.000 face value. The annual coupon interest rate is 5 percent, and the...

  • 7.6)A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon...

    7.6)A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What is its yield to maturity (YTM)? Round your answer to two decimal places.    % Assume that the yield to maturity remains constant for the next five years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  

  • 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value,...

    19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is 6.97 percent? A. $799.32 B. $848 16 C. $917.92 D. $1,005.46 E. None of the above.l 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT