Amazon bonds have a 9% coupon rate. Interest is paid semiannually and the bonds have a...

Amazon bonds have a 9% coupon rate. Interest is paid semiannually and the bonds have a maturity of 10 years. If the appropriate discount rate is 10% on similar bonds, what is the price of Amazon's bonds?

Expert Solution

Calculations-

Note-

As the discount rate on similar bonds is 10%, the YTM for amazon bond is taken the same.

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago

Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and...

Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 11 years. Their par value is $1,000. If your required rate of return is 9 percent, what is the value of the bond? What is the value if the interest is paid annually?

Hamilton, Inc. bonds have a coupon rate of 13 percent. The interest is paid semiannually, and...

Hamilton, Inc. bonds have a coupon rate of 13 percent. The interest is paid semiannually, and the bonds mature in 13 years. Their par value is $1,000. If your required rate of return is 8 percent, what is the value of the bond? What is the value if the interest is paid annually?

Enterprise, Inc. bonds have an annual coupon rate of 13percent. The interest is paid semiannually and...

Enterprise, Inc. bonds have an annual coupon rate of 13percent. The interest is paid semiannually and the bonds mature in11 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 11percent, what is the value of the bond? What is its value if the interest is paid annually? a. The value of the Enterprise bonds if the interest is paid semiannually is (Round to the nearest cent.)

Hamilton, Inc. bonds have a coupon rate of 1414 percent. The interest is paid semiannually, and...

Hamilton, Inc. bonds have a coupon rate of 1414 percent. The interest is paid semiannually, and the bonds mature in 77 years. Their par value is $1 comma 0001,000. If your required rate of return is 1212 percent, what is the value of the bond? What is the value if the interest is paid annually?a. If the interest is paid semiannually, the value of the bond is $nothing. (Round to the nearest cent.)b. If the interest is paid annually, the...

Enterprise, Inc. bonds have an annual coupon rate of 14 percent. The interest is paid semiannually...

Enterprise, Inc. bonds have an annual coupon rate of 14 percent. The interest is paid semiannually and the bonds mature in 14 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 9 percent, what is the value of the bond? What is its value if the interest is paid annually? A. The value of the Enterprise bonds if the interest is paid semiannually is..

Enterprise,Inc. bonds have an annual coupon rate of13 percent. The interest is paid semiannually and the...

Enterprise,Inc. bonds have an annual coupon rate of13 percent. The interest is paid semiannually and the bonds mature in7years. Their par value is$1000If the market's required yield to maturity on a comparable-risk bond is 15percent, what is the value of the bond? What is its value if the interest is paid annually?a. The value of the Enterprise bonds if the interest is paid semiannually is $? (Round to the nearest cent.)

Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% coupon rate with interest paid semiannually, and...

Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% coupon rate with interest paid semiannually, and a par value of $1,000. The nominal required rate of return on these bonds is 7.25%. What is the bond’s intrinsic value? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Hamilton, Inc. bonds have a coupon rate of 15 percent. The interest is paid semiannually, and the bonds mature in 14 years.

Hamilton, Inc. bonds have a coupon rate of 15 percent. The interest is paid semiannually, and the bonds mature in 14 years. Their par value is $1,000. If your required rate of return is 14 percent, what is the value of the bond? What is the value if the interest is paid annually?

Q1. Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% coupon rate with interest paid semiannually,...

Q1. Moerdyk Corporation's bonds have a 15-year maturity, a 5.25% coupon rate with interest paid semiannually, and a par value of $1,000. The nominal required rate of return on these bonds is 7.50%. What is the bond’s intrinsic value? Q2.Niendorf Corporation's 25-year maturity bonds have an 8.75% coupon rate with interest paid semiannually, and a par value of $1,000. The bonds are currently selling at a premium price of $1,150 in the bond market. What is their yield to maturity...

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

Question