Question
In: Finance
3. Calculate the fair present value of the following bonds, all of which have a 10...
3. Calculate the fair present value of the following bonds, all of which have a 10 percent coupon rate (paid semiannually), face value of $1,000, and a required rate of return of 8 percent.
a. The bond has 10 years remaining to maturity. _________
b. The bond has 15 years remaining to maturity. _________
c. The bond has 20 years remaining to maturity. _________
d. What do your answers to parts (a) through (c) say about the relation between time to maturity and present values? State the relationship and draw and label a graph.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Calculate the fair present value of the following bonds, all of which have a 5 percent...
Calculate the fair present value of the following bonds, all of
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a. The bond has a 6 percent coupon rate. (Do not round
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return of 8 percent.
a. The bond has a 6 percent coupon rate.
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d. What do your answers to part (a) through (c) say about the
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11. Calculate the fair present values of the following bonds, all of which pay interest semiannually,...
11.
Calculate the fair present values of the following bonds, all of
which pay interest semiannually, have a face value of $1,000, have
5 years remaining to maturity, and have a required rate of return
of 10 percent. (LG 3-5)
a. The bond has a 6 percent coupon rate.
b. The bond has a 8 percent coupon rate.
c. The bond has a 10 percent coupon rate.
d. What do your answers to parts (a) through (c) say about the...
Calculate the fair present values of the following bonds, all ofwhich pay interest semiannually, have...
Calculate the fair present values of the following bonds, all of
which pay interest semiannually, have a face value of $1,000, have
10 years remaining to maturity, and have a required rate of return
of 12 percent.The bond has a 8 percent coupon rate. (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))The bond has a 10 percent coupon rate. (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))The bond...
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually.
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$500
8%
9
11%
B
1,000
13
20
11
C
500
15
5
16
The value of bond A, B, C is $?? (Round to the nearest
cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$1,000
8
%
10
11
%
B
500
14
15
10
C
500
14
6
12
The value of bond A is
$nothing. ?
(Round to the nearest cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually. (
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
Copy to Clipboard
+
Open in Excel
+
A
$1 comma 0001,000
88
%
1111
99
%
B
500500
1212
2020
1111
C
100100
1414
44
1414
The value of bond A is
$nothing .
(Round to the nearest cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually. (Click on the icon
located on the top-right corner of the data table below in order
to copy its contents into a spreadsheet.)
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
Copy to Clipboard
+
Open in Excel
+
A
$1 comma 0001,000
88
%
1111
99
%
B
500500
1212
2020
1111
C
100100
1414...
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the
following table, all of which pay interest semiannually.
Bond Par Value Coupon interest
rate Year to maturity Required stated
annual return
A 500 7% 8 9%
B 1,000 12 20
14
C 500 16 5 13
The value of bond A is
The value of bond B is
The value of bond C is
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