Question
In: Finance
Grohl Co. issued 16-year bonds a year ago at a coupon rate of 11 percent. The...
Grohl Co. issued 16-year bonds a year ago at a coupon rate of 11
percent. The bonds make semiannual payments. If the YTM on these
bonds is 7 percent, what is the current bond price? _18_2012 ?
$1,367.84 ? $1,246.88 ? $1,377.84 ? $1,647.72 ? $596.15
Solutions
Expert Solution
Pricd of a bond is present value of all cashflows associated with the bond, namely coupons and maturity value, discounted at required rate of return (or yield to maturity). Mathematically it can be represented as:
Now, our bond is a semi-annual coupon paying bond.
M =$1000, n = 15 * 2 = 30 semi annual periods, i =7%/2 = 3.5% semi annually, C = 11%/2 = $55 per semi annual period. Substituting these values:
P = 1367.84 --> Answer
jeff jeffy answered 2 years agoRelated Solutions
Grohl Co. issued 16-year bonds a year ago at a coupon rate of 6 percent. The...
Grohl Co. issued 16-year bonds a year ago at a coupon rate of 6
percent. The bonds make semiannual payments. If the YTM on these
bonds is 8 percent, what is the current bond price?
Weismann Co. issued 17-year bonds a year ago at a coupon rate of 11 percent. The...
Weismann Co. issued 17-year bonds a year ago at a coupon rate of
11 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 8 percent, what is the
current bond price? Multiple Choice • $586.82 • $1,278.10 •
$1,718.94 • $1,268.10 • $1,187.49
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The...
Weismann Co. issued 11-year bonds a year ago at a coupon rate of
7 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 12 percent, what is the
current bond price?
Multiple Choice
$807.83
$739.55
$1,692.20
$713.25
$723.25
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The...
Weismann Co. issued 11-year bonds a year ago at a coupon rate of
7 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 6 percent, what is the
current bond price?
Weismann Co. issued 7-year bonds a year ago at a coupon rate of 11 percent. The...
Weismann Co. issued 7-year bonds a year ago at a coupon rate of
11 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 8 percent, what is the
current bond price?
Mullineaux Co. issued 11-year bonds one year ago at a coupon rate of 8.6 percent. The...
Mullineaux Co. issued 11-year bonds one year ago at a coupon
rate of 8.6 percent. The bonds make semiannual payments. If the YTM
on these bonds is 7.5 percent, what is the current bond price?
1. Grohl Co. issued 13-year bonds a year ago at a coupon rate of 11 percent....
1. Grohl Co. issued 13-year bonds a year ago at a coupon rate of
11 percent. The bonds make semiannual payments. If the YTM on these
bonds is 11 percent, what is the current bond price?
$630.76
$1,727.34
$1,010.00
$1,000.00
$1,005.00
2.
Ngata Corp. issued 16-year bonds 2 years ago at a coupon rate of
9.7 percent. The bonds make semiannual payments. If these bonds
currently sell for 96 percent of par value, what is the YTM?
11.27%
5.12%
9.22%...
Weismann Co. issued 9-year bonds a year ago at a coupon rate of 10 percent. The...
Weismann Co. issued 9-year bonds a year ago at a coupon rate of
10 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 7 percent, what is the
current bond price?
Multiple Choice
$714.05
$1,427.29
$1,181.41
$1,119.12
$1,191.41
One year ago, XYZ Co. issued 11-year bonds at par. The bonds have a coupon rate...
One year ago, XYZ Co. issued 11-year bonds at par. The bonds
have a coupon rate of 6.29 percent, paid semiannually, and a face
value of $1,000. Today, the market yield on these bonds is 7.31
percent. What is the percentage change in the bond price over the
past year? Answer to two decimals
Dufner Co. Issued 15-year bonds one year ago at a coupon rate of 4.8 percent.
Dufner Co. Issued 15-year bonds one year ago at a coupon rate of 4.8 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.3 percent, what is the current dollar price assuming a $1,000 par value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price = _______
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
ADVERTISEMENT