PMT is the semi annual coupon payment
PMT = (coupon rate * face value) / 2
PMT = (0.09 * 1000) / 2
PMT = $45
How do you find the PMT? Problem 2 (Bond Valuation) You consider purchasing a $1,000 face value 5-year semiannual coupon...
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...
2. You own a $1,000 face value 10-year bond with semiannual coupons that will mature in 6 years. Immediately after receiving the 8th coupon of $46, you sell the bond and purchase another newly issued $1,000 face value 10-year bond with semiannual coupons of $47.5 each. Given that the prevailing market interest rate is r(2) = 9% and the bond you originally owned is redeemable at 104% of the face value, find the redemption value of the new bond that...
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.) 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 b. What would be the price of the bond if market interest rates change to: 12% 6% 10% Nominal market rate, r: Value of bond:
What is the price of a 3 -year, 8.1% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.9 % What is the yield to maturity of at 9.9% semiannual coupon bond with a face value of $1,000 selling for $894.71 that matures in 11 years? The annual yield to maturity of the bond is: (Select the best choice below.) A.11.62% B.11.039% C.12.201% D.13.131% E.9.528%
2. You are considering purchasing a 10 year bond with a face value of $1000 with an annual coupon of $55.00. The current interest rate is 6%, what would you expect to pay for the bond? 3. What is the current yield on a 1 year bond $100 coupon bond which you pay $98.00 for with an annual coupon payment of $6.00. 4. Assuming the same coupon payment as listed in question 3 but now the price you pay for...
Consider a 15-year bond with a face value of $ 1,000 that has a coupon rate of 5.4 %, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline
(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...
Bond valuation-Semiannual interest Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon interest rate of 13% (6.5% paid semiannually) if the required return on similar-risk bonds is 13% annual interest (6.5% paid semiannually). The present value of the bond is SU(Round to the nearest cent.)
Bond Valuation Assume that you are considering the purchase of a 20-year, non- callable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 8.4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Yield to Maturity Radoski Corporation's bonds make an annual coupon interest payment of 7.35%. The bonds have a...
Bond valuation—Semiannual interest Find the value of a bond maturing in 11 years, with a $1,000 par value and a coupon interest rate of 14% (7% paid semiannually) if the required return on similar-risk bonds is 13% annual interest left (6.5% paid semiannually). The present value of the bond is nothing. (Round to the nearest cent.)