Question

In: Finance

A bond has annual coupon rate of 7%, with interest paid semiannually. The bond matures in...

A bond has annual coupon rate of 7%, with interest paid semiannually. The bond matures in seven years. At a market discount rate of 5%, the price of this bond per 100 of par value is closest to:

Round your answer to 2 decimal places.

Solutions

Expert Solution

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

As nothing was mentioned excel is used.

jeff jeffy answered 8 months ago
Next > < Previous

Related Solutions

A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures...
A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures in seven years. The price of this bond per 100 of par value is 112.54, what is its yield-to-maturity?
1. A issued an unsecured bond with a 10% coupon rate paid semiannually. The bond matures...
1. A issued an unsecured bond with a 10% coupon rate paid semiannually. The bond matures in 8 years, has a par value of $1,000, and a yield to maturity of 8.5%. Based on this information, what is the price of this bond? 2. B issued a bond that will mature in 10 years. The bond has a face value of $1,000 and a coupon rate of 8%, paid semiannually. The bond is currently trading at $1,100, and is callable...
A bond that matures in 15 years has a ​$1,000par value. The annual coupon interest rate...
A bond that matures in 15 years has a ​$1,000par value. The annual coupon interest rate is 12 percent and the​ market's required yield to maturity on a​comparable-risk bond is 14 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?
The $1,000 face value Orient bond has a coupon rate of 9%, with interest paid semiannually,...
The $1,000 face value Orient bond has a coupon rate of 9%, with interest paid semiannually, and matures in 9 years. The bond current price is $856. The bond can be called in 3 years. The call premium on the bond is 7% of par. a) What is the bond's yield to maturity (YTM)? b) What is the bond’s yield to call (YTC)? c) Would an investor be more likely to earn the YTM or the YTC? Explain
A bond that offers an annual coupon rate of 9%, with interest paid annually, has a...
A bond that offers an annual coupon rate of 9%, with interest paid annually, has a face value of $1,000. The difference between its yield to maturity and coupon rate is 4%. The bond matures in 8 years. What is the bond’s price?
A 14% bond matures in 14 years. Assuming the coupon is paid semiannually and the par...
A 14% bond matures in 14 years. Assuming the coupon is paid semiannually and the par value is $1,000, what is the value of this bond to an investor requiring a 15% rate of return? A) $828.27 B) $972.66 C) $942.13 D) $826.40
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The...
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The bond currently sells for $875. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The...
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The bond currently sells for $800. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The...
A 20-year, $1,000 par value bond has a 7.50% coupon rate with interest paid semiannually. The bond currently sells for $800. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
A 10-year, $1,000 par value bond has a 6.75% coupon rate with interest paid semiannually. The...
A 10-year, $1,000 par value bond has a 6.75% coupon rate with interest paid semiannually. The bond currently sells for $850. What is the capital gains yield on these bonds? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT