Question
In: Finance
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?
Solutions
Expert Solution
To find the price of this bond, we need to realize that the maturity of the bond is 6 years. The bond was issued 1 year ago, with 7 years to maturity, so there are 6 years left on the bond.
Semiannual interest = $1,000 * 0.11 * 6/12 = $55
The price of the bond is:
Current bond price = $55(PVIFA 4%,14) + $1,000(PVIF 4%,14)
Current bond price = ($55 * 10.5631229289) + ($1,000 * 0.57747508275)
Current bond price = $1,158.45
jeff jeffy answered 2 years agoRelated Solutions
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 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 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
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
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%...
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?
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
- Laelia Ltd sells airplanes for $20,000 each. These airplanes are designed for individual use and can...
- A skier starts from rest at the top of a hill that is inclined at 10.9°...
- In which ways do accommodation and enhancement programs benefit employers? In which ways do they benefit...
- Finco Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This...
- Considering the Philips Curve as ? = 0.02 − 0.6 (?−0.05), and the government announces that...
- Using Java, write the the following code. Only the bold needs to be answered Here is...
- The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's...
ADVERTISEMENT