Question

In: Finance

A 5-year bond with a face value of $1000 has a coupon rate of 6%, with...

A 5-year bond with a face value of $1000 has a coupon rate of 6%, with semiannual payments. What is the coupon payment for this bond per 6-month period?

A.

not enough information

B.

$60

C.

$30

Solutions

Expert Solution

C.$30.

Working;

coupon payment per 6 month period = face value * coupon rate * 6 months /12 months

=>$1000*6%*6/12

=>$30.


Related Solutions

A 5-year bond with a face value of $1000 has a coupon rate of 6%, with...
A 5-year bond with a face value of $1000 has a coupon rate of 6%, with semiannual payments. What is the coupon payment for this bond per 6-month period? A. $60 B. not enough information C. $30
A bond has a face value of $1000 and the coupon rate is 6%. Coupons are...
A bond has a face value of $1000 and the coupon rate is 6%. Coupons are paid semiannually. The bond matures in six years. The market interest rate is 7%. What is the present value of this bond? And Suppose the price of the bond equals to the present value of the bond. What is the current yield of this bond?
If a 30 year bond with a face value of 1000 anda 5% coupon rate is...
If a 30 year bond with a face value of 1000 anda 5% coupon rate is selling for $947.51, which of the following could be the yield to maturity? Assume a one year bond with a par value of $1000 and a coupon rate of 5%. What is the price if the current interest rate is 5%?
A five-year $1000 face value bond has a 5% coupon rate and a 10% yield to...
A five-year $1000 face value bond has a 5% coupon rate and a 10% yield to maturity. It makes annual coupon payments selling for $810.46. Please calculate this bond’s (20 points) Macaulay duration Modified duration Convexity If the interest rate rises by 100 bps, what would be the dollar amount change in price?
A bond face value is $1000, with a 6-year maturity. Its annual coupon rate is 7%...
A bond face value is $1000, with a 6-year maturity. Its annual coupon rate is 7% and issuer makes semi-annual coupon payments. The annual yield of maturity for the bond is 6%. The bond was issued on 7/1/2017. An investor bought it on 8/1/2019. Calculate its dirty price, accrued interests, and clean price.
You own a bond with the following features: Face value of $1000, Coupon rate of 6%...
You own a bond with the following features: Face value of $1000, Coupon rate of 6% (annual) 12 years to maturity. The bond is callable after 6 years with the call price of $1,070. If the market interest rate is 4.32% in 6 years when the bond can be called, if the firm calls the bond, how much will it save or lose by calling the bond? State your answer to the nearest penny (e.g., 84.25) If there would be...
What is the quote of a 5 year, zero coupon bond with $1000 face value if...
What is the quote of a 5 year, zero coupon bond with $1000 face value if the yield to maturity is 2.6% (semiannual compounding)? Round to 3 decimal places
A 30-year corporate bond has a face value of $1,000 and a coupon rate of 6%...
A 30-year corporate bond has a face value of $1,000 and a coupon rate of 6% paid annually. At the end of year 12 the Yield to Maturity is 8%. a. How much money will the holder of the bond receive at the end of year 30? b. What is the bond’s price at the end of year 12? c. What will the bond’s interest payment be at the end of year 12? d. If the Yield to Maturity later...
Assume we have a bond that has a face value of $1000 and a coupon rate...
Assume we have a bond that has a face value of $1000 and a coupon rate of 5%, paid annually. a) If the bond price today is 91.45% and the duration (years to maturity) is 3, what must be investors' required rate of return? b) Assume the bond was a callable bond. Would an investor expect a higher or lower price on the bond? Justify your answer. c) Assume the bond was a convertible bond. Would an investor expect a...
Calculate the price if a 5% coupon, $1000 face value 5-year bond if the appropriate annual...
Calculate the price if a 5% coupon, $1000 face value 5-year bond if the appropriate annual discount rates are 3% for the first 2 years and 8% for the final three years. Calculate this bond’s yield to maturity or average annual yield. Calculate your return if you hold this bond for one year. If we assume the change in annual rates is due to expectations of inflation, what does the bond market thing inflation is going to do in the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT