Please type out the work for me folks, I need to understand this stuff :) Thanks!!
Homework Answers
A zero coupon bond does not pay any coupon interest. Its price is the present value of the bond payable at maturity.The formula for present value of bond at maturity is:
Zero coupon bond price = F / (1 + r)t
where, F is the face or par value of the bond = $1000, r is the yield to maturity = 13.03% compounded semi annually. So semi annual yield = 13.03% / 2 = 6.515%, t is the time period = 16 * 2 = 32 semi annual years
Now, putting the values in the above formula, we get,
Bond price = $1000 / (1 + 6.515%)32
Bond price = $1000 / (1 + 0.06515)32
Bond price = $1000 / (1.06515)32
Bond price = $1000 / 7.5360660215
Bond price = $132.70
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Please type out the work for me folks, I need to understand this
stuff :) Thanks!!...
Please type out the work for me folks, as I need to learn this stuff :)...
Please type out the work for me folks, as I need to learn this
stuff :) Thanks so much!
Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $911. It has an annual coupon rate of 11.70 percent, paid semiannually, and has 28-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity? Round the answer to two decimal places...
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Thanks for helping me out folks! Please show me all of the work, I need to...
Thanks for helping me out folks! Please show me all of the work,
I need to learn all this!
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Please type out the work for me folks, I need to see it to undertsand it-...
Please type out the work for me folks, I need to see it to
undertsand it- thank you!!
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Please show me the work folks, I really need to get this down- thanks so much!...
Please show me the work folks, I really need to get this down-
thanks so much!
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please be as clear and as simple as possible. I am trying to understand it. show...
please be as clear and as
simple as possible. I am trying to understand it. show me the
steps, not only the answers. thank you in advance.
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please show how to compute with a financial calculator. thank you! Bond Valuation Exercises: OM Question...
please show how to compute with a financial calculator. thank
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Bond Valuation Exercises: OM Question 1. GTF Corporation has 5 percent coupon bonds on the market with a par of $1,000 and 10 years left to maturity. The bonds make annual interest payments. If the market interest rate on these bonds is 7 percent, what is the current bond price? Question 2. MTV Corporation has 7 percent coupon bonds on the market with a par of $1,000 and 8...
Please type out the work for me folks, as I need to learn this
stuff :) Thanks so much!
Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $911. It has an annual coupon rate of 11.70 percent, paid semiannually, and has 28-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity? Round the answer to two decimal places...
Thanks for helping me out folks! Please show me all of the work,
I need to learn all this!
Fresh Water, Inc. sold an issue of 23-year $1,000 par value bonds to the public. The bonds have a 9.90 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 9.17 percent. What is the current market price of the bonds? Round the answer to two decimal places.
Please type out the work for me folks, I need to see it to
undertsand it- thank you!!
Pet Food Company bonds pay an annual coupon rate of 8.10 percent. Coupon payments are paid semiannually. Bonds have 5 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 11.85 percent. Round the answer to two decimal places.
Please show me the work folks, I really need to get this down-
thanks so much!
Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 30-year to maturity, carry a 11.14 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that these bonds would sell for $952 each. What is the yield to maturity for these bonds? Round the answers...
please be as clear and as
simple as possible. I am trying to understand it. show me the
steps, not only the answers. thank you in advance.
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please show how to calculate with financial calculator.
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please show how to compute with a financial calculator. thank
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