1) A 20-year bond pays interest at 4% and was issued 12 years ago with a...
1) A 20-year bond pays interest at 4% and was issued 12 years ago with a face value of $2,000. Semi-annual interest. What is the bond's price today if the interest rate on comparable new bond issues is 6%?
2) A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has a face value of $1,000 and carries a coupon rate of 5%. Semi-annual interest. Approximately what is the bond market yield today if the current price is $ 1,130?
Will rate fast. Thank you.
Homework Answers
Add Answer to:
1) A 20-year bond pays interest at 4% and was issued 12 years ago with a...
A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has...
A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has a face value of $1,000 and carries a coupon rate of 5%. Semi-annual interest. Approximately what is the bond market yield today if the current price is $ 1,130?
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate...
A 30-year bond was issued 21 years ago. The bond's face value is $1000 and it pays semi-annual coupons. The coupon rate is 7.6% and the yield to maturity is 6.4%. What is the bond's price assuming no default? [Provide your answer rounded to two digits.]
The DJ Company issued a 12-year semi-annual pay bond 2 years ago. The face value of...
The DJ Company issued a 12-year semi-annual pay bond 2 years ago. The face value of the bond is $1,100 and the coupon rate is 4%. The current market rate (annual APR) on comparable bonds is 5%. Calculate the bond's current price.
The DJ Company issued a 12-year semi-annual pay bond 2 years ago. The face value of...
The DJ Company issued a 12-year semi-annual pay bond 2 years ago. The face value of the bond is $1,100 and the coupon rate is 4%. The current market rate (annual APR) on comparable bonds is 5%. Calculate the bond's current price.
A government bond with a face value of $1,000 was issued eight years ago there are...
A government bond with a face value of $1,000 was issued eight years ago there are seven years remaining unit maturity. The bond pays semi-annual coupon payments of $45, the coupon rate is 9% p.a. paid twice yearly and rate in the marketplace are 9.6% p.a. compounded semi annually. What is the value of the bond today?
A corporate bond with a face value of $100,000 was issued six years ago and there...
A corporate bond with a face value of $100,000 was issued six years ago and there are nine years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 8% p.a. compounded semi-annually. What is the value of the bond today?
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000....
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 9.4% annual rate. a. What is the bond's price today if the interest rate on comparable new issues is 12%? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent. $ b. What is the price today if the interest rate is 8%?...
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000....
The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 10% annual rate. What is the bond's price today if the interest rate on comparable new issues is 12%? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent. $ What is the price today if the interest rate is 8%? Do...
A bond was issued three years ago at a price of $946 with a maturity of...
A bond was issued three years ago at a price of $946 with a maturity of six years, a yield-to-maturity (YTM) of 6.25% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has fallen to 5.00% compounded semi-annually?
FMA Inc has issued a $1000 par value bond that matures in 14 years. The bond...
FMA Inc has issued a $1000 par value bond that matures in 14 years. The bond pays semi-annual coupons at a rate of 7.5% APR compounded semi-annually, with first coupon payment due 6-months from today. What is the bond's price if the market requires a 9.5% yield to maturity on this bond?
Most questions answered within 3 hours.
-
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 31 minutes ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 33 minutes ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 1 hour ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 1 hour ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 1 hour ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 1 hour ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 1 hour ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 1 hour ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 1 hour ago -
A marketing executive who knowingly authorizes a shoddy
defective product to be brought to market is...
asked 1 hour ago -
Write a psudocode:
1. Define a function called authorize that takes in 2 strings,
uName, and...
asked 1 hour ago -
What Hall voltage (in mV) is produced by a 0.180 T field applied
across a 2.60...
asked 1 hour ago