The Delta Statemen bond matures in 10 years, have a par value of $1,000 and an annual coupon payment of $80. The market interest rate is 9%. What is the bond's price?
Information provided:
Par value= future value= $1,000
Time= 10 years
Coupon payment= $80
Interest rate= 9%
The price of the bond is calculating the present value.
Enter the below in a financial calculator to compute the present value:
FV= 1,000
N= 10
PMT= 80
I/Y= 9
Press the CPT key and PV to compute the present value.
The value obtained is 935.82.
Therefore, the price of the bond is $935.82.
In case of any query, kindly comment on the solution.
The Delta Statemen bond matures in 10 years, have a par value of $1,000 and an annual coupon payment of $80. The market...
Question 21 1 pts A $1,000 par value 9% annual coupon bond matures in 10 years but is callable in 3 years. The bond is currently selling for $1,026. If the bond carries a call premium equal to one interest payment, what is its yield to call? 8.2% 7.7% 9.5% 10.6%
A 1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 5 years and currently sells for $ 992.46 What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 8 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 7 percent and the markets required yield to maturity on a comparable risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
A $1,000 par value bond with a 9.00% coupon rate (semianual interest) matures in 8 years and currently sells for $988.09. What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is % (Round to two decimal places.)
What is the price of a zero-coupon ($1,000 par value) bond that matures in 17 years has a promised yield of 9.5%? The bond's price is $ . (Round to the nearest cent.)
You are considering the purchase of a $1,000 par value bond with a coupon rate of 6.8% (with interest paid semiannually) that matures in 12 years. If the bond is priced to yield 9%, what is the bond's current price? The bond's current price is $ . (Round to the nearest cent.)
A bond has a par value of $1,000 and coupon rate of 9.0%. The bond matures in five years and is selling at a $50 premium relative to par value. What is the bond's current yield?
You own a bond that has a 6% annual coupon rate and matures 5
years from now. You purchased this 10-year bond at par value when
it was originally issued. Which one of the following statements
applies to this bond if the relevant market interest rate is now
5.8% (yield to maturity)?
You purchase a bond with a coupon rate of 6.25% and a par value
of $1,000. There are 53 days to the next semiannual coupon payment
date and...
A $1,000 par value bond has a current price of $884.94 and a maturity value of $1,000 and matures in 6 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate? The bond's annual coupon rate is (blank) % ? *round to 2 decimal places*