A bond that matures in 14 years has a $1,000 par value. The annual coupon interest...

A bond that matures in 14 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on a comparable-risk bond is 14 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

The value of this bond if it paid interest annually would be$ _____ The value of this bond if it paid interest semiannually would be$______

------> (Bond valuation)Pybus, Inc. is considering issuing bonds that will mature in 21 years with an annual coupon rate of 11 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 11.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 12.5 percent. What will be the price of these bonds if they receive either an A or a AA rating

The price of the Pybus bonds if they receive a AA rating will be $___

The price of the Pybus bonds if they receive an A rating will be $___

Expert Solution

jeff jeffy answered 1 year ago

A bond that matures in 13 years has a $1,000 par value. The annual coupon interest...

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A bond that matures in 18 years has a $1,000 par value. The annual coupon interest...

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(Bond valuation) A bond that matures in 8 years has a $1,000 par value. The annual coupon interest rate is 9 percent and the market's required yield to maturity on a comparable-risk bond is 18 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? *Someone previously answered this with annually = $604.56 and semiannually = $596.89 and the annual number is incorrect*

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