Question

Rex Healthcare recently issued a bond with a 30-year maturity, an annual coupon rate of 10 percent, a face value of $1,000, and semiannual interest payments. If the current rate of interest is a 9 percent yield to maturity on this investment, what is the current price of the bond?

Answer #1

for formulas and calculations, refer to the image below -

1.A 12-year bond has a 9 percent annual coupon, a yield to
maturity of
11.4 percent, and a face value of $1,000. What is the price of the
bond?
2.You just purchased a $1,000 par value, 9-year, 7 percent
annual coupon bond that pays interest on a semiannual basis. The
bond sells for $920. What is the bond’s nominal yield to
maturity?
a. 7.28%
b. 8.28%
c. 9.60%
d. 8.67%
e. 4.13%
f. None of
the above
3.A bond with...

1. A 9-year zero coupon bond has a yield to maturity of
11.8 percent, and a par value of $1,000. What is the
price of the bond?
2. A 7-year bond has a 8 percent coupon rate with the interest
paid in semi annual payments. The yield to maturity of
the bond is 2.3 percent, and a face value of
$1,000. What is the price of the bond?
3. A 12-year bond has a 9 percent annual coupon, a yield to
maturity of...

Assume that you are considering the purchase of a 10-year,
noncallable bond with an annual coupon rate of 5%. The bond has a
face value of $1,000, and it makes semiannual interest payments. If
you require an 6% yield to maturity on this investment, what is the
maximum price you should be willing to pay for the bond?
Provide the correct excel function along with
inputs

Assume that you are considering the purchase of a 7-year bond
with an annual coupon rate of 4.5%. The bond has face value of
$1,000 and makes semiannual interest payments. If you require an
12.0% nominal yield to maturity on this investment, what is the
maximum price you should be willing to pay for the bond?

Company B had issued 10-year bonds a year ago at the coupon rate
10%. The bond makes annual payments. The yield to maturity (YTM) of
these bonds is 5%. The face value of the bond is €1000.
Calculate the current bond price.

b.Suppose a ten-year, $1,000 bond with an 8.8% coupon rate and
semiannual coupons is trading for $1,035.87.
a. What is the bond's yield to maturity (expressed as an APR
with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.6% APR, what
will be the bond's price?
C. Suppose that General Motors Acceptance Corporation issued a
bond with 10 years until maturity, a face value of $1,000, and a
coupon rate of 7.6% (annual payments). The yield to...

Company B had issued 10-year bonds a year ago at the coupon rate
4%. The bond makes annual payments. The yield to maturity (YTM) of
these bonds is 5%. The face value of the bond is $1000.
Calculate the current bond price.
Company B has a second debt issue on the market, a zero coupon
bond with 9.6 years left to maturity. The yield to maturity (YTM)
of these bonds is 8 %. The face value of the bond is...

c) CleanUp Industries Inc. is issuing a zero-coupon
bond that will have a maturity of thirty years. The bond's par
value is $1,000, and the current yield on similar bonds is 5.5%.
What is the expected price of this bond, using the semiannual
convention?
d) Free-Up Inc. has issued 30-year semiannual coupon
bonds with a face value of $1,000. If the annual coupon rate is 8%
and the current yield to maturity is 5%, what is the firm's current
price...

Assume that you are considering the purchase of a 15-year bond
with an annual coupon rate of 9.5%. The bond has face value of
$1,000 and makes semiannual interest payments. If you require a 8%
nominal yield to maturity on this investment, what is the maximum
price you should be willing to pay for the bond?
Group of answer choices
925.28
961.57
1083.90
1,129.69
1040.72

16. A 10-year bond, $100 face value bond with a 8% coupon rate
and semi-annual coupons has a yield maturity of 5%. The bond should
be trading at a price of $.___ Round to the nearest cent.
17. XYZ company has just issued a 30-year bond with a coupon
rate of %7.5 (annual coupon payments) and a face value of $1,00. If
the yield to maturity is 11%, what is the price of the bond. Round
to the nearest cent....

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