Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, annual pay bond that has a coupon rate of 7.82%. If the yield to maturity for the bond is 8.33%, what will the price of the bond be?

Answer format: Currency: Round to: 2 decimal places.

Solutions

Expert Solution

Interest = $1,000 * 0.0782 = $78.2

Current bond price = $78.2(PVIFA 8.33%,19) + $1,000(PVIF 8.33%,19)

Current bond price = ($78.2 * 9.37980451271) + ($1,000 * 0.21866228399)

Current bond price = $952.16

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, semi-annual pay bond that has a coupon rate of 7.96%. If the yield to maturity for the bond is 8.12%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 14.00 year, annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 14.00 year, annual pay bond that has a coupon rate of 8.06%. If the yield to maturity for the bond is 7.72%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 7.81%. If the yield to maturity for the bond is 8.38%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, annual pay bond that has a coupon rate of 8.12%. If the yield to maturity for the bond is 7.58%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #3 Assume a par value of $1,000. Caspian Sea plans to issue a 12.00 year, annual pay bond that has a coupon rate of...

Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, annual pay bond that has a coupon rate of 7.95%. If the yield to maturity for the bond is 8.49%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 13.00%. If the yield to maturity for the bond is 13.0%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places.

Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of 7.82%. If the yield to maturity for the bond is 8.13%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places.

Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.02%. If the yield to maturity for the bond is 7.60%, what will the price of the bond be? Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, semi-annual pay bond that has a coupon rate of 7.91%. If the yield to maturity for the bond is 8.43%, what will the price...

Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of 8.18%. If the yield to maturity for the bond is 7.62%, what will the price of the bond be? Assume a par value of $1,000. Caspian Sea plans to issue a 7.00 year, annual pay bond that has a coupon rate of 8.20%. If the yield to maturity for the bond is 7.84%, what will the price...

Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has a coupon rate of 7.86%

Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has a coupon rate of 7.86%. If the yield to maturity for the bond is 8.11%, what will the price of the bond be?

Subjects