The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
To find the current bond price, we need to put the following values in the financial calculator:
INPUT | 17x2=34 | 4.5/2=2.25 | (8%/2)x1,000=40 | 1,000 | |
TVM | N | I/Y | PV | PMT | FV |
OUTPUT | -$1,412.77 |
Hence, Current Bond Price = $1,412.77
The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value...
The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
The Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
Grossnickle Corporation issued 20-year, noncallable, 9.4% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity? a. $1,714.18 b. $1,496.28 c. $1,452.70 d. $1,583.44 e. $1,539.86
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 9.5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $1,386.61 b. $1,392.65 c. $1,383.59 d. $1,389.63 e. $1,395.67
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $1,047.95 b. $1,055.29 c. $1,062.63 d. $1,051.62 e. $1,058.96
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 5% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. a. $947.41 b. $952.05 c. $945.09 d. $954.37 e. $949.73
ABC Corporation issued 20-year, noncallable, 8% coupon bonds that pays coupon payment semi-annually. Par value is $1,000. Assume market interest rate on these bonds is 5.5%. What is the current price of the bonds? A. 1300.98 B. 1267.10 C. 1377.27 D. 1271.55
One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.2% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? $__________ If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 10.6%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus...
Corp-X issued corporate bonds one year ago at par with a face value of $1000, an annual coupon rate of 6%(paid semi annually), and a 20 years to maturity. At the moment, bonds of equivalent risk and maturity to these Corp-X bonds are being issued at par with a coupon rate of 5.5% per year(paid semi annually) 1. At the time that Corp-X bonds were issued, what was the Yield to Maturity of the bonds? And What is the current...
Seven years ago Emery Industries issued $1,000 par bonds with a 3.5% semi-annual coupon and 15 years to maturity at a price of 5975. Today the bonds trade at a yield of 5.4%. What is the current price of the bonds? O A. $877.89 O B. $757.11 OC. $615.45 O D. $890.46