"Calculate the price of a 2.80% coupon bond that matures in 18 years if the market...

"Calculate the price of a 2.80% coupon bond that matures in 18 years if the market interest rate is 4.05% (Assume semiannual compounding and $1,000 par value)."

Expert Solution

Semiannual interest = $1,000 * 0.0280 * 6/12 = $14

Current bond price = $14(PVIFA 2.025%,36) + $1,000(PVIF 2.025%,36)

Current bond price = ($14 * 25.3868047176) + ($1,000 * 0.48591720426)

Current bond price = $841.33

jeff jeffy answered 2 years ago

Calculate the price of a zero-coupon bond that matures in 13 years if the market interest...

Calculate the price of a zero-coupon bond that matures in 13 years if the market interest rate is 6.15 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Treasury note Corporate bond Municipal bond

Calculate the price of a zero-coupon bond that matures in 23 years if the market interest...

Calculate the price of a zero-coupon bond that matures in 23 years if the market interest rate is 4.2 percent. Assume semiannual compounding

Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9...

Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9 years if the market interest rate is 8 percent. Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.) Multiple Choice $920.00 $500.25 $493.63 $1,000.00

Determine the price of a 6% coupon bond that matures in 20 years, given the market...

Determine the price of a 6% coupon bond that matures in 20 years, given the market rate for a similar quality bond is 8%. (Use time value tables or a financial calculator.)

A zero-coupon bond has a principal of $100 and matures in four years. The market price...

A zero-coupon bond has a principal of $100 and matures in four years. The market price for the bond is $72. Calculate the yield to maturity, duration and convexity of the bond. (Please provide a well detailed answer with the equations that are being used. Thank you!)

Calculate the value of a bond that matures in 18 years and has a $1,000 par...

Calculate the value of a bond that matures in 18 years and has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent.

A bond with a 10% annual coupon matures in 6 years. The bond has a price...

A bond with a 10% annual coupon matures in 6 years. The bond has a price of $1,200. What is the yield to maturity for this bond? Question 3 options: 2.99% 5.94% 5.98% 7.42%

A bond with a 10% semiannual coupon matures in 6 years. The bond has a price...

A bond with a 10% semiannual coupon matures in 6 years. The bond has a price of $1,200. What is the effective yield to maturity for this bond? Question 5 options: 5.94% 6.07% 7.56% 12.32%

What is the market value of a bond that matures in 20 years, has a coupon...

What is the market value of a bond that matures in 20 years, has a coupon rate of 10% paid semiannually, has a face value of $1,000, and has a yield to maturity of 8%? $1,197.93 $1,196.36 $1,135.90 $1,133.86

Price and yield A 6% semiannual coupon bond matures in 4 years. The bond has a...

Price and yield A 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.6223%. What is the bond's price? Round your answer to the nearest cent. $ What is the bond's YTM? Round your answers to two decimal places. %

Question