Question

M. Poirot wishes to sell a bond that has a face value of $1,000. The bond...

M. Poirot wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate of 10.47% with bond interest payable semiannually. Six years ago, $856 was paid for the bond. At least a 12% return (yield) on the investment is desired. The minimum selling price must be:

Enter your answer as follow: 1234.56

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You wish to sell a bond that has a face value of $5,000. The bond bears...
You wish to sell a bond that has a face value of $5,000. The bond bears an interest rate of 7.5%, which is payable quarterly. Six years ago, the bond was purchased at $4,800. At least a 9% annual return on the investment is desired. What must be the minimum selling price of the bond now in order to make the desired return on the investment?
You bought at $1,000 bond at par (face value) that paid nominal interest at the rate...
You bought at $1,000 bond at par (face value) that paid nominal interest at the rate of 10%, payable semiannually, and held it for 10 years. You then sold it at a price that resulted in a yield of 8% nominal interest compounded semiannually on your capital. What was the selling price?
An investor wishes to sell a 30 year $40,000 (face value) bond that matures in seven...
An investor wishes to sell a 30 year $40,000 (face value) bond that matures in seven years. the bond pays semiannual dividends at interest rate of 4% per year ( coupon rate) A. what should be the selling price of the bond if the buyer plans to hold the bond to maturity and wishes to make 6% per year (nominal) rate of return on the investment? B. if the bond sells for that price ( value from A) what effective...
A bond with a face value of $1,000 has 14 years until maturity, has a coupon...
A bond with a face value of $1,000 has 14 years until maturity, has a coupon rate of 7.6% and sells for $1,089 What is the current yield on the bond? What is the yield to maturity if interest is paid once a year? What is the yield to maturity if interest is paid semiannually?
A bond has a face value of $1,000. The fair price of the bond is 7,1%...
A bond has a face value of $1,000. The fair price of the bond is 7,1% higher than its face value. Coupon rate of the bond is 8%, payable semiannually. If maturiy of the bond is 10 years from today, what is the yield to maturity?
A bond with a face value of $1,000 has 14 years until maturity, carries a coupon...
A bond with a face value of $1,000 has 14 years until maturity, carries a coupon rate of 8.6%, and sells for $1,104. a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) c. What is the yield to maturity...
A 10​-year bond pays interest of $27.10 ​semiannually, has a face value of $1,000​, and is...
A 10​-year bond pays interest of $27.10 ​semiannually, has a face value of $1,000​, and is selling for $786.13.What are its annual coupon rate and yield to​maturity?
A 9.3 percent coupon (paid semiannually) bond, with a $1,000 face value and 18 years remaining...
A 9.3 percent coupon (paid semiannually) bond, with a $1,000 face value and 18 years remaining to maturity. The bond is selling at $970. An 8.3 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $900. An 11.3 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,050. Round your answers to 3 decimal places!!!!. (e.g.,...
A five-year bond has a face value of $1,000. Its coupon rate is 5% p.a. and...
A five-year bond has a face value of $1,000. Its coupon rate is 5% p.a. and coupons are paid semi-annually. a. If the market yield at issuance is 5%, without calculation identify the price of the bond would be? b. If we hold the bond for 1.5 years and then sell it at a yield of 4% p.a. What would the selling price be? c. What would the holding period yield p.a. on this investment be?
Assume that an investor wishes to purchase a 20-year bond with a maturity value of $1,000...
Assume that an investor wishes to purchase a 20-year bond with a maturity value of $1,000 and the coupon payments is 7% of maturity value. The interest is paid semiannually. If the investor requires a 10 percent simple yield to maturity on this investment, what is the maximum price she should be willing to pay for the bond? (Round the answer to the nearest whole number.)​ Group of answer choices $619 $674 $743 $828 $902
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT