Question

In: Finance

Find the value of a bond maturing in 11 ​years, with a ​$1,000 par value and...

Find the value of a bond maturing in 11 ​years, with a ​$1,000 par value and a coupon interest rate of 12​% (6​% paid​ semiannually) if the required return on​ similar-risk bonds is 17​% annual interest (8.5% paid​ semiannually).

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with formula, let me know, will do that also. Thank you.


Related Solutions

What is the current price of a $1,000 par value bond maturing in 20 years with...
What is the current price of a $1,000 par value bond maturing in 20 years with a coupon rate of 8%, paid annually, that has a required return of 12%? Please include 2 decimal places
Find the value of a bond maturing in 4 years, with a $1 comma 000 par value and a coupon interest rate of 11% ?
Find the value of a bond maturing in 4 years, with a $1 comma 000 par value and a coupon interest rate of 11% ?(5.5% paid semiannually) if the required return on similar-risk bonds is 16% annual interest left parenthesis 8 % paid semiannually).
BONDS VALUATIONS PRACTICE 1. A bond maturing in 20 years at a par value of $1,000...
BONDS VALUATIONS PRACTICE 1. A bond maturing in 20 years at a par value of $1,000 has a coupon rate of 6% and current yield of 8%. Is this a discount bond or a premium bond? What is the price of the bond? 2. A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 4% and current yield of 3%. Is this a discount bond or a premium bond? What is the price...
 Find the value of a bond maturing in 7 ​years, with a ​$1 comma 000 par...
 Find the value of a bond maturing in 7 ​years, with a ​$1 comma 000 par value and a coupon interest rate of 9 ​% ​(4.5 ​% paid​ semiannually) if the required return on​ similar-risk bonds is 16 ​% annual interest left parenthesis 8 % paid​ semiannually). The present value of the bond is:
  ​(Bond valuation) A bond that matures in 11 years has a ​$1,000 par value. The annual...
  ​(Bond valuation) A bond that matures in 11 years has a ​$1,000 par value. The annual coupon interest rate is 8 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually? a.The value of this bond if it paid interest annually would be ​$
A bond with 5 years left to maturity, $1,000 par value and a YTM of 11%...
A bond with 5 years left to maturity, $1,000 par value and a YTM of 11% (APR, semi-annual compounding) pays an 8% coupon semi-annually. • What is the bond’s price? • What are the bond’s Macaulay and modified duration? Interpret them. • What is the the new bond price if the yield decreases by 25bp? • Recalculate the bond’s price on the basis of 10.75% YTM, and verify that the result is in agreement with your answer to the previous...
a. Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if...
a. Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to maturity is 10 percent and interest is paid semiannually. b. Calculate the modified duration for a 10-year, 12 percent bond with a yield to maturity of 10 percent and a Macaulay duration of 7.2 years.
"Consider the following bond: Coupon rate = 11% Maturity = 18 years Par value = $1,000...
"Consider the following bond: Coupon rate = 11% Maturity = 18 years Par value = $1,000 First par call in 13 years Only put date in five years and putable at par value Suppose that the market price for this bond is $1,169. Show that the yield to maturity for this bond is 9.077%. Show that the yield to first par call is 8.793%. Show that the yield to put is 6.942%. Suppose that the call schedule for this bond...
4. A bond maturing in 15 years has a coupon of 7.5% and a par value...
4. A bond maturing in 15 years has a coupon of 7.5% and a par value of $1,000. If you purchase the bond for $1,145.68: a. What is your current yield? b. What is your yield to maturity?
Consider a zero-coupon bond maturing in 2 years with a face value of $1,000 and a...
Consider a zero-coupon bond maturing in 2 years with a face value of $1,000 and a yield to maturity of 2%. Assume the recovery rate is 40%, and that default can only happen exactly at the end of the 2-year period. There is a credit default swap (CDS) available for this bond, and the premium is 0.8%. For both a bondholder and a CDS buyer (with notional value $1,000), compute the cash flows two years from today in the case...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT