Question
In: Finance
A bond issued on February 1, 2004 with face value of $47400 has semiannual coupons of...
A bond issued on February 1, 2004 with face value of $47400 has semiannual coupons of 4.5%, and can be redeemed for par (face value) on February 1, 2021. What is the accrued interest and the market price (the “clean” price) of the bond on November 15, 2006, if the bond’s yield on that date is to be 6.5%? (use actual/actual for accrued interest).
please show steps and formula, Im really lost. I have tried multiple times, and dont understand where i went wrong.
Solutions
jeff jeffy answered 6 months agoRelated Solutions
Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of...
Suppose a bond with a 10% coupon rate and semiannual coupons,
has a face value of $1000, 20 years to maturity and is selling for
$1197.93.
◦Is the YTM more or less than 10%?
1197.93 = 50[1 – 1/(1+r)40] / r + 1000 / (1+r)40
i know the answer is 4% but how can i calculated the r by
hand?
What is the quoted price of a 15-year 7.0% bond with semiannual coupons, a face value...
What is the quoted price of a 15-year 7.0% bond with semiannual
coupons, a face value of $1,000, and a yield to maturity of 8.0%?
A. $493.40 b. $614.82 c. $913.54 d. $914.41 e. $944.41
On 4 February 2010 a company issued a bond with a face value of $500,000 that...
On 4 February 2010 a company issued a bond with a face value of
$500,000 that matures exactly 25 years later. The coupon rate is 5%
p.a. compounded half-yearly. What is the bond's value on 4 February
2018 assuming the market yield is 8% p.a. compounded
half-yearly.
a. $230,139.97
b. $670,428.40
c. $408,757.48
d. $361,916.02
e. $363,175.43
On January 1, Landan, Inc. issued a 20-year semiannual bond with a face value of $915,000...
On January 1, Landan, Inc. issued a 20-year semiannual bond with
a face value of $915,000 paying 8%. On the date of issue, the
market rate for similar bonds was 8%. Landan would like
to know how much this issuance would raise.
The following table is a SCRATCH table and will NOT be graded.
You may use it, if you wish, to assist you. Provided you answer the
other questions correctly, you could leave it blank and still
receive full...
A $1,000 par value bond has 7.5% semiannual coupons and matures on July 1, 2017 at...
A $1,000 par value bond has 7.5% semiannual coupons and matures
on July 1, 2017 at $1050. Find the actual feeling price of this
bond on November 15, 2013 and the price that would be quoted in a
financial newspaper on the same date, based on a nominal annual
yield rate of 5.8% compounded semiannually. Use the actual number
of days to compare the accrued interest.
A $1,000 par value bond has 7.5% semiannual coupons and matures on July 1, 2017 at...
A $1,000 par value bond has 7.5% semiannual coupons and matures
on July 1, 2017 at $1050. Find the actual feeling price of this
bond on November 15, 2013 and the price that would be quoted in a
financial newspaper on the same date, based on a nominal annual
yield rate of 5.8% compounded semiannually. Use the actual number
of days to compare the accrued interest.
On February 5, 2018, Breanna purchased a newly issued three-year bond that has a face value...
On February 5, 2018, Breanna purchased a newly issued three-year
bond that has a face value for $1,000 and a coupon rate of 6.5%. On
February 6, 2018, the market rate on similar bonds rose to 7.2%. If
Breanna sold her bond, what price would she have received? Show
your work using the present value/future value formula.
1. A 9% semiannual coupon bond matures in 4 years. The bond has a face value...
1. A 9% semiannual coupon bond matures in 4 years. The bond has
a face value of $1,000 and a current yield of 8.9704%.
a) What is the bond's price? Do not round intermediate
calculations. Round your answer to the nearest cent.
2. What is the bond's YTM? Do not round intermediate
calculations. Round your answers to two decimal
places.
Suppose a 15-year bond with $100 face value, 8.00% coupon rate and semiannual coupons is currently...
Suppose a 15-year bond with $100 face value, 8.00% coupon rate
and semiannual coupons is currently trading at par. All else
constant, if the yield to maturity of the bond suddenly changes to
7.00% APR, what will happen to this bond’s price?
Group of answer choices
it will decrease by $9.108
it will decrease by $8.745
it will increase by $9.196
it will stay the same
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?
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