A $1,000 par value bond has a coupon interest rate of 6 percent. The interest payment...

A $1,000 par value bond has a coupon interest rate of 6 percent.

The interest payment is ?

a. $160

b. $6

c. need to know the maturity date

d. $60

Expert Solution

jeff jeffy answered 2 years ago

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield...

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield to maturity of 7.5 percent, and 10 years until maturity. Assuming semi-annual coupon payments: d. If the bond were selling for $929, what would the effective yield-to-maturity if you reinvest coupon payments at 9 percent? ***please show the work or what is entered in calculator***

A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...

A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a yield to maturity of 5.25 percent. The bond matures in 9 years. What is the price of the bond, What will happen to the price if market interest rates rise to 6.45 percent, what can you say about the relationship between the price of a bond and the market interest rate?

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised YTM, and 10 years to maturity. Find the bond's duration.

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised YTM, and 10 years to maturity. Find the bond's duration. please show in excel

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest? The buyer will pay the seller $20 of accrued interest The seller will pay the buyer $20 of accrued interest The buyer will pay the seller $10 of accrued interest The seller will pay the buyer $10...

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised...

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised YTM , and 6 years to maturity. What is the bond's duration and modified duration?

1) A 25-year, $1,000 par value bond has an 8.5 percent annual payment coupon. The bond...

1) A 25-year, $1,000 par value bond has an 8.5 percent annual payment coupon. The bond currently sells at a discount (for $925 exactly). If the YTM doesn't change from its current level, what will the price be five years from now? a) $930.11 b) $884.19 c) $977.20 d) $953.36 2) GE's balance sheet as of today is as follows: Long-term debt (bonds, at par) $23,500,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000 Retained earnings 4,000,000 Total debt and...

Bond A has a $1,000 par value and a 6% coupon rate, three years remaining to...

Bond A has a $1,000 par value and a 6% coupon rate, three years remaining to maturity, and an 8% yield to maturity. The duration of Bond A is _____ years.

Pedrollo Pumps has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate.

Pedrollo Pumps has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate. The bond will mature in twenty years and currently sells for $1,250.Required:a) Using the approximation formula, calculate the yield to maturity (YTM)b) Calculate the current yield of Pedrollo bonds.

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

Question

A $1,000 par value bond has a coupon interest rate of 6 percent. The interest payment...

Solutions

Expert Solution

Related Solutions

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield...

A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...

A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised...

1) A 25-year, $1,000 par value bond has an 8.5 percent annual payment coupon. The bond...

Bond A has a $1,000 par value and a 6% coupon rate, three years remaining to...

Pedrollo Pumps has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate.

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