Homework Answers
If interest is paid annually:
Face Value = $1,000
Annual Coupon = $40
Time to Maturity = 6 years
Annual Interest Rate = 6.00%
Value of Bond = $40 * PVIFA(6.00%, 6) + $1,000 * PVIF(6.00%,
6)
Value of Bond = $40 * (1 - (1/1.06)^6) / 0.06 + $1,000 /
1.06^6
Value of Bond = $901.65
If interest is paid semiannually:
Face Value = $1,000
Annual Coupon = $40
Semiannual Coupon = $40 / 2
Semiannual Coupon = $20
Time to Maturity = 6 years
Semiannual Period = 12
Annual Interest Rate = 6.00%
Semiannual Interest Rate = 3.00%
Value of Bond = $20 * PVIFA(3.00%, 12) + $1,000 * PVIF(3.00%,
12)
Value of Bond = $20 * (1 - (1/1.03)^12) / 0.03 + $1,000 /
1.03^12
Value of Bond = $900.46
Add Answer to:
Problem 7-15 (similar to) Question Help (Bond valuation) Xerox issued bonds that pay $40.00 in interest...
(Bond valuation) Xerox issued bonds that pay $ 80.00 in interest each year and will mature...
(Bond valuation) Xerox issued bonds that pay $ 80.00 in interest each year and will mature in 9 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a return of 5 percent on your investment. What is the value of the bond to you, first assuming that the interest is paid annually and then semiannually? Answer in excel in possible
(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...
(Bond valuation) Flora Co.'s bonds, maturing in 9 years, pay 7 percent interest on a $1,000...
(Bond valuation) Flora Co.'s bonds, maturing in 9 years, pay 7 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 9 percent, what is the value of the bond? How would your answer change if the interest were paid annually? a. If the interest is paid semiannually, the value of the bond is $ . (Round to the nearest cent.)
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 7 years. Their par value is $1,000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually?
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid semiannually, and the b...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid semiannually, and the bonds mature in 14 years. Their par value is $1,000 If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually? a. If the interest is paid semiannually, the value of the bond is $ 594.93 (Round to the nearest cont.) b. If the interest is...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid somiannually, and the bonds mature in 14 years. Their par value is $1,000 If your required rate of return is 15 percent, what is the value of the bond? What is the value of the interest is paid annually? a. If the interest is paid semiannually, the value of the bond is $ . (Round to the nearest cont.)
please show work. Thank you! (Bond valuation) Flora Co.'s bonds, maturing in 15 years, pay 12...
please show work. Thank you!
(Bond valuation) Flora Co.'s bonds, maturing in 15 years, pay 12 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 15 percent, what is the value of the bond? How would your answer change if the interest were paid annually? a. If the interest is paid semiannually, the value of the bond is $ (Round to the nearest cent.)
9-6 (similar to) Question Help * Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering...
9-6 (similar to) Question Help * Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 16 years with an annual coupon rate of 11 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 10.5 percent. However, Pybus is not sure whether the new bonds...
(Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000...
(Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of retum is 14 percent, what is the value of the bond? How would your answer change the interest wore and annually? a. If the interest is paid semiannually, the value of the bond is S. (Round to the nearest cent) b. If the interest is paid annually, the value of the bond...
(Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 15 percent
(Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 15 percent. The interest is paid semiannually and the bonds mature in 12 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 12 percent, what is the value of the bond? What is its value if the interest is paid annually? a. The value of the Enterprise bonds if the interest is paid semiannually is $ _______ . (Round to the...
(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) Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 7 years. Their par value is $1,000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually?
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid semiannually, and the bonds mature in 14 years. Their par value is $1,000 If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually? a. If the interest is paid semiannually, the value of the bond is $ 594.93 (Round to the nearest cont.) b. If the interest is...
(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 8 percent. The interest is paid somiannually, and the bonds mature in 14 years. Their par value is $1,000 If your required rate of return is 15 percent, what is the value of the bond? What is the value of the interest is paid annually? a. If the interest is paid semiannually, the value of the bond is $ . (Round to the nearest cont.)
please show work. Thank you!
(Bond valuation) Flora Co.'s bonds, maturing in 15 years, pay 12 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of return is 15 percent, what is the value of the bond? How would your answer change if the interest were paid annually? a. If the interest is paid semiannually, the value of the bond is $ (Round to the nearest cent.)
9-6 (similar to) Question Help * Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 16 years with an annual coupon rate of 11 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 10.5 percent. However, Pybus is not sure whether the new bonds...
(Bond valuation) Flora Co.'s bonds, maturing in 6 years, pay 9 percent interest on a $1,000 face value. However, interest is paid semiannually. If your required rate of retum is 14 percent, what is the value of the bond? How would your answer change the interest wore and annually? a. If the interest is paid semiannually, the value of the bond is S. (Round to the nearest cent) b. If the interest is paid annually, the value of the bond...
Most questions answered within 3 hours.
-
Adams Camps, Inc. leases the land on which it builds camp sites.
Adams is considering opening...
asked 7 minutes ago -
An Olympic archer misses the bull's-eye 11% of the time.
Assume each shot is independent of...
asked 14 minutes ago -
a gas cylinder in the lab contains 12.0 ft3 of some gas at 70ºF
and 100psia....
asked 13 minutes ago -
Consider the data in the following table regarding the age of a
particular model of car...
asked 18 minutes ago -
She estimates the following model as Rent = β0 + β1 Bedroom + β2
Bath +...
asked 39 minutes ago -
Prove that the following is a valid cumulative distribution
function
F(x) = x/(1+x) for a>=0
0...
asked 1 hour ago -
Sal's satellite company broadcasts TV to subscribers in Los
Angeles and New York. The demand functions...
asked 30 minutes ago -
1. Sketch the expected Mass Spectrum of Pentane (C5H12)
2. Draw the most stable Newman projection...
asked 1 hour ago -
Russel Wisselink “Have a plan ready for me by 9:00 a.m. tomorrow
morning” was the instruction...
asked 34 minutes ago -
Write the balanced chemical equation for the reaction between
iodate and bisulfite. Does the order with...
asked 56 minutes ago -
how can you efficiently determine the number of atoms
in a sample of an element?
asked 41 minutes ago -
Calcium dihydrogen phosphate, Ca(H2PO4)2, and sodium hydrogen
carbonate, NaHCO3, are ingredients of baking powder that react...
asked 47 minutes ago