A coupon bond that pays interest semi-annually has a par value
of $1,000, matures in seven...
A coupon bond that pays interest semi-annually has a par value
of $1,000, matures in seven years, and has a yield to maturity of
9.3%. The price of the bond today will be ________ if the coupon
rate is 9.5%.
A coupon bond which pays interest semi-annually has a par value
of $1,000, matures in 8 years, and has a yield to maturity of 7%.
If the coupon rate is 6%, the intrinsic value of the bond today
will be __________ (to the nearest dollar).
A
coupon bond which pays interest semi-annually, has a par value of
$1,000, matures in 15 years, and has a yield to maturity of 4.2%.
If the coupon rate is 3.7%, the market price of the bond today will
be
29. A coupon bond that pays interest annually has a par value of
$1,000, matures in 5 years, and has a yield to maturity of 10%. The
intrinsic value of the bond today will be ______ if the coupon rate
is 7%.
A) $712.99
B) $620.92
C) $1,123.01
D) $886.28
E) $1,000.00
30. A coupon bond that pays interest annually, has a par value
of $1,000, matures in 5 years, and has a yield to maturity of 10%.
The intrinsic...
A coupon bond that pays interest of $60 annually has a par value
of $1,000, matures in 5 years, and is selling today at a $75.25
premium from par value. The current yield on this bond is
_________.
A coupon bond which pays interest of $50 annually, has a par
value of $1,000, matures in 10 years, and the interest rate is 12%,
what will be the bond price?
A company issued a 15-year bond with $1,000 face value and 8
percent coupon rate. If the required rate of return on
this bond is 10 percent, what will be the bond price?
Without using a financial calculator
A coupon bond that pays interest annually has a par value of
$1,000, matures in 10 years, and has a yield to maturity of 8%.
Calculate the intrinsic value (price) of the bond today if the
coupon rate is 9%.
A $1,000 par value bond is currently valued at $1,050. The bond
pays interest semi-annually, has 9 years to maturity, and has a
yield to maturity of 7.72 percent. The coupon rate is _____ percent
and the current yield is _____ percent.
Multiple Choice
a. 7.80; 6.21
b. 8.00; 7.31
c. 8.00; 7.51
d. 8.08; 7.66
e. 8.50; 8.10
Consider a $1,000 par value bond with a 7% annual coupon. The
bond pays interest annually. There are 20 years remaining until
maturity. You have expectations that in 5 years the YTM on a
15-year bond with similar risk will be 7.5%. You plan to purchase
the bond now and hold it for 5 years. Your required return on this
bond is 10%. How much would you be willing to pay for this bond
today? Select one:
a. $820
b....
AFRICANA’s 30- year bond pays 12 percent coupon interest
semi-annually and has a par value of sh1, 000. If the bond
currently selling at par, what is the bond’s yield to maturity
(YTM) using the approximate method? [3 Marks] [c] What is the value
of a preferred stock where the dividend rate is 16% percent on
aSh100 par value? The appropriate discount rate for a stock of this
risk level is 12 percent. [1 Mark] [d] Investors require a 15%...
Problem 5: Bond A pays 12% coupon annually, has a par value of
$1,000 and will mature in 3 years. Using a 10% discount rate
(Yield-to-Maturity), what is the value of the bond?
Problem 6: Using your information on Bond A above, calculate the
(Macaulay) duration of the bond.
Problem 7: What is the (Macaulay) duration of a bond with the
following characteristics: N = 5, PMT = 90, FV = 1000, I/Y =
12%?
Problem 8: What is the...