A bond matures in 8 years, Par value = $1,000, and coupon annual interest payment =...

A bond matures in 8 years, Par value = $1,000, and coupon annual interest payment = $65. Yield to maturity of this bond is 8.2% (yield, or annual return). What is the bond's price?

a. $903.04

b. $925.26

c. $948.67

d. $972.84

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

A bond that matures in 8 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 8 years has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 17 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

A bond that matures in 13 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on a comparable-risk bond is 17 percent. a. What would be the value of this bond if it paid interest annually? b. What would be the value of this bond if it paid interest semiannually?

A bond that matures in 14 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 14 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on a comparable-risk bond is 14 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? The value of this bond if it paid interest annually would be$ _____ The value of this bond if it...

A bond that matures in 18 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 18 years has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

A bond that matures in 19 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 19 years has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 17 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

A bond that matures in 12 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 12 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on a comparable-risk bond is 18 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years...

A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $749.05. The company's federal-plus-state tax rate is 40%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places. what is the answer? %

(Bond valuation) A bond that matures in 8 years has a $1,000 par value. The annual...

(Bond valuation) A bond that matures in 8 years 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 18 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? *Someone previously answered this with annually = $604.56 and semiannually = $596.89 and the annual number is incorrect*

A $1,000 par value bond has a 9% annual coupon and matures in 5.50 years. If...

A $1,000 par value bond has a 9% annual coupon and matures in 5.50 years. If the current market interest rate on bonds of this type is 7% p.a., calculate this bond’s invoice price, accrued interest, and clean price.

A $1,000 par value bond matures in 8 years. It has a 7% coupon rate, with...

A $1,000 par value bond matures in 8 years. It has a 7% coupon rate, with semi-annual interest payments. The yield (the rate at which investors are using to calculate the price of the bond) is 8%. What is the fair market value of the bond?

Subjects