Question

In: Finance

Calculate the value of a bond that is expected to mature in 13 years with a...

Calculate the value of a bond that is expected to mature in 13 years with a 1,000 face value. The interest coupon rate is 8%, and the required rate of return is 10%. Interest is paid anually. State whether the bond is selling at a premium or at a discount.

Solutions

Expert Solution

As nothing was mentioned excel is used.


Related Solutions

 Calculate the value of a bond that matures in 13 years and has a $ 1,000...
 Calculate the value of a bond that matures in 13 years and has a $ 1,000 par value. The annual coupon interest rate is 15 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 12 percent. The value of the bond is? (round to the nearest cent)
Calculate the value of a bond that matures in 13 years and has a $1,000 par...
Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 9 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 11 percent. The value of the bond is
Calculate YTM – Assume a bond will mature in 20 years.   A. Calculate the YTM for...
Calculate YTM – Assume a bond will mature in 20 years.   A. Calculate the YTM for a bond with a price of $874 and annual payment of $70.   B. Calculate the price at the end of year 10. Calculate the price at the end of year 19. Explain the results. No excel! Must use formulas.
Midland oil has$1000par value(maturity value)bonds outstanding at 13 percent interest..The bond will mature in 20 years...
Midland oil has$1000par value(maturity value)bonds outstanding at 13 percent interest..The bond will mature in 20 years with annual payments. Compute the current price of the bond if the present yield to maturity is.(Round the final answers 2 decimal places. a. 14 Percent            $ b. 12 percent             $ c.   13percent             $
​XiaoKe, Corp. issued a​ bond, which will mature in 13 years. with a coupon rate of...
​XiaoKe, Corp. issued a​ bond, which will mature in 13 years. with a coupon rate of 14 ​percent, paying interest semiannually. The​ bond's par value is ​$1,000. ​And, according to this​ company's risk, investors require a rate of return of 13 percent. Answer the following questions. a. If the interest is paid​ semiannually, the value of the bond is ​$ b. If the interest is paid​ annually, the value of the bond is ​$
Thatcher Corporation's bonds will mature in 13 years. The bonds have a face value of $1,000...
Thatcher Corporation's bonds will mature in 13 years. The bonds have a face value of $1,000 and a 9% coupon rate, paid semiannually. The price of the bonds is $1,150. The bonds are callable in 5 years at a call price of $1,050. What is their yield to maturity? What is their yield to call? Do not round intermediate calculations. Round your answers to two decimal places.
A zero coupon bond has a par value of $1,000 and will mature in eight years....
A zero coupon bond has a par value of $1,000 and will mature in eight years. a Calculate the current price of this bond if the market yield is: 1) 7.75 percent; ii) 5.25 percent. b. In each case, calculate the percentage change in the price of the bond if the market yield rises by 1 percent.
A $1,000 par value bond with an annual 8% coupon rate will mature in 10 years....
A $1,000 par value bond with an annual 8% coupon rate will mature in 10 years. Coupon payments are made semi-annually. What is the market price of the bond if the required market rate is 6%? (See Appendix G.)
SXS Companys bond mature in 8 years, have a par value of $1,000 and make an...
SXS Companys bond mature in 8 years, have a par value of $1,000 and make an annual coupon interest payment of $95. The market requires an interest rate of 4.2% on these bonds. What is the bonds price ?
ABC has just issued a $1,000 par value bond that will mature in 10 years. This...
ABC has just issued a $1,000 par value bond that will mature in 10 years. This bond pays interest of $45 every six months. If the annual yield to maturity of this bond is 7%, what is the price of the ABC bond if the market is in equilibrium? $992 $1,062 $1,112 none of above
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT