Question

In: Finance

You find a zero coupon bond which is a poor value of $10,000 and 12 years...

You find a zero coupon bond which is a poor value of $10,000 and 12 years to maturity on this bond is 4.9% assuming that is the semi annual compound what is the price worth of this bond how do I go

Solutions

Expert Solution


Related Solutions

You find a zero coupon bond with a par value of $10,000 and 23 years to...
You find a zero coupon bond with a par value of $10,000 and 23 years to maturity. The yield to maturity on this bond is 4.5 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
1. You find a zero coupon bond with a par value of $10,000 and 17 years...
1. You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 2. Union Local School District has a bond outstanding with a coupon rate of 2.8 percent paid semiannually and 16 years to maturity. The yield...
You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The yield to maturity on this bond is...
You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The yield to maturity on this bond is 4.2 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You find a zero coupon bond with a par value of $25,000 and 18 years to...
You find a zero coupon bond with a par value of $25,000 and 18 years to maturity. If the yield to maturity on this bond is 3.9 percent, what is the dollar price of the bond? Assume semiannual compounding periods. What is the bond price?
A zero coupon bond has a par value of $10,000 and a current price of $5,000....
A zero coupon bond has a par value of $10,000 and a current price of $5,000. If the bond has 8 years to maturity, what is its after- tax yield to maturity for an investor paying 25% taxes? A. 4.4% B. 4.9%C. 5.2% D. 6.6% E. 6.8%
Suppose you purchase a 30-year, SEK 10,000 par value, zero-coupon bond with a yield to maturity...
Suppose you purchase a 30-year, SEK 10,000 par value, zero-coupon bond with a yield to maturity (YTM) of 4.2%. You hold the bond for 5 years before selling it. (a) What is the price of the bond when you buy it? Answer: The price of the bond is SEK . (round to full SEK) (b) If the bond’s yield to maturity drops by 1% when you sell it, what is the internal rate of return of your investment? Answer: If...
Suppose you purchase a zero coupon bond with face value $1,000, maturing in 27 years, for...
Suppose you purchase a zero coupon bond with face value $1,000, maturing in 27 years, for $693.33. What is the implicit interest, in dollars, in the first year of the bond's life?
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10,000 face value that matures...
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm’s assets is $11,900. The standard deviation of the return on the firm’s assets is 28 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously.     Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $44,000 that matures in one year. The current market...
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10,000 face value that matures...
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm's assets is $11,900. The standard deviation of the return on the firm's assets is 28 percent per year. Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $44,000 that matures in one year. The current market value of the firm's assets is $47,600. The standard deviation of the return...
A zero coupon bond with a face value of $1,000 that matures in 8 years sells...
A zero coupon bond with a face value of $1,000 that matures in 8 years sells today for $556. What is the yield to maturity? (Use annual compounding.)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT