A bond offers a coupon rate of 3%, paid annually, and has a maturity of 19...

A bond offers a coupon rate of 3%, paid annually, and has a maturity of 19 years. Face value is $1,000. If the current market yield is 11% (discount rate), what should be the price of this bond?

Enter your answer in dollars, without the dollar sign ('$'), and rounded to the nearest cent (2 decimals).

Expert Solution

Solution :

The Price of the bond is = $ 372.86

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 1 year ago

A) A bond offers a coupon rate of 12%, paid annually, and has a maturity of...

A) A bond offers a coupon rate of 12%, paid annually, and has a maturity of 16 years. The current market yield is 14%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond? B) You own a bond with the following features: face value of $1000, coupon rate of 5% (semiannual compounding), and 15 years to maturity. The bond has a current price of $1,115. The bond is callable after...

A) A bond offers a coupon rate of 9%, paid annually, and has a maturity of...

A) A bond offers a coupon rate of 9%, paid annually, and has a maturity of 14 years. The current market yield is 10%. Face value is $1,000. If market conditions remain unchanged, what should the price of the bond be in 1 year? Assume the market yield remains unchanged. B) A bond currently trades at a price of $852.72 in the market. The bond offers a coupon rate of 7%, paid annually, and has a maturity of 15 years....

5. A bond offers a coupon rate of 7%, paid annually, and has a maturity of...

5. A bond offers a coupon rate of 7%, paid annually, and has a maturity of 18 years. If the current market yield is 9% (discount rate), what should be the price of this bond? 6. A bond offers a coupon rate of 10%, paid semiannually, and has a maturity of 6 years. If the current market yield is 6%, what should be the price of this bond?

A bond offers a coupon rate of 6%, paid annually, and has a maturity of 9...

A bond offers a coupon rate of 6%, paid annually, and has a maturity of 9 years. The current market yield is 14%. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?

A bond offers a coupon rate of 6%, paid annually, and has a maturity of 6...

A bond offers a coupon rate of 6%, paid annually, and has a maturity of 6 years. If the current market yield is 7% (discount rate), what should be the price of this bond? Enter your answer in dollars, without the dollar sign ('$'), and rounded to the nearest cent (2 decimals).

A bond offers a coupon rate of 4%, paid annually, and has a maturity of 5...

A bond offers a coupon rate of 4%, paid annually, and has a maturity of 5 years. The current market yield is 9%. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?

4. A bond offers a coupon rate of 6%, paid annually, and has a maturity of...

4. A bond offers a coupon rate of 6%, paid annually, and has a maturity of 11 years. The current market yield is 3%. If market conditions remain unchanged, what should the price of the bond be in 1 year?

A bond offers a coupon rate of 7%, paid annually, and has a maturity of 10...

A bond offers a coupon rate of 7%, paid annually, and has a maturity of 10 years. The current market yield is 9%. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond? Enter your answer as a percentage, without the percentage sign ('%'), and rounded to 2 decimals. Use the minus sign ('-') if the yield is negative.

A bond that offers an annual coupon rate of 9%, with interest paid annually, has a...

A bond that offers an annual coupon rate of 9%, with interest paid annually, has a face value of $1,000. The difference between its yield to maturity and coupon rate is 4%. The bond matures in 8 years. What is the bond’s price?

Bond A has a 7% coupon rate, paid annually. Maturity is in three years. The bond...

Bond A has a 7% coupon rate, paid annually. Maturity is in three years. The bond sells at par value &1000. The actual price of the bond if the interest rate immediately decreases from 7% to 6% is ____. A. 1027.25 B. 1026.68 C. 1026.73 D. 1026.73

Question