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Apache Bond Pricing: Assume you are the financial Manager of Apache Oil company. you have decided...

Apache Bond Pricing: Assume you are the financial Manager of Apache Oil company. you have decided to sell new bonds to find a new petroleum project. you would like to make an interest payment of $ 65.00 per year per bond on a face value of $ 1,000. The Bonds will mature 25 years from now From the following Finra or any website identify a comparable bond issued by Devon Energy that has maturity closest to 25 years use Y,T,M  

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Expert Solution

Issuer Name Symbol Maturity YTM

DEVON ENERGY CORP NEW

DVN4258361

 6/15/2045 5.133%
value of Bond-Apache =Using present value function in MS excel pv(rate,nper,pmt,fv,type) rate =5.133% nper =25 pmt =-65 fv =-1000 type =0 PV(5.133%,25,-65,-1000,0) $1,190.12
Issue price of Apache Bond $1,190.12

jeff jeffy answered 2 years ago
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