Question

Suppose you purchase a 20​-year U.S. savings bond with an APR of 9.0%. The face value...

Suppose you purchase a 20​-year U.S. savings bond with an APR of 9.0%. The face value of the bond is $5500.Find the purchase price of the bond.

The purchase price of the bond is $

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hope this answer was helpful to you. If you satisfied with this answer give a thumps up.

Happy Learning :)

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
Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 20...
Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 20 years, for $214.55. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond's life? The implicit interest in the first year of the bond's life is _________. (Round to the nearest cent.)
Suppose the U.S. government issues a two-year bond with a face value of $1,500 and a...
Suppose the U.S. government issues a two-year bond with a face value of $1,500 and a zero coupon. (a)If yearly interest rates on bank deposits are 5 percent, would we expect the yield of the bond to be greater than, less than, or equal to 5 percent? Explain intuitively why this is the case. (b)What will the market price of the bond be, given the yield? (Round to the nearest dollar) (c)Suppose the bond is sold for the price you...
Suppose you purchase a zero coupon bond with a face value of ​$1,000​, maturing in 18years,...
Suppose you purchase a zero coupon bond with a face value of ​$1,000​, maturing in 18years, for ​$214.10. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the​ bond's life?
Suppose you purchase a zero-coupon bond (coupon = 0%) with a face value of $1,000 and...
Suppose you purchase a zero-coupon bond (coupon = 0%) with a face value of $1,000 and a maturity of 25 years, for $200. If the yield to maturity on the bond remains unchanged, what will the price of the bond be 5 years from now? $800.00 $253.64 $297.58 $275.95 $267.52
Suppose you purchase a zero coupon bond with a face value of ​$1,000​, maturing in 21...
Suppose you purchase a zero coupon bond with a face value of ​$1,000​, maturing in 21 ​years, for ​$215.00. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the​ bond's life? The implicit interest in the first year of the​ bond's life is ?  ​(Round to the nearest​ cent.)
Suppose you purchase a zero-coupon bond with a face value $1,000, maturing in 16 years, for...
Suppose you purchase a zero-coupon bond with a face value $1,000, maturing in 16 years, for $670. If the yield to maturity on the bond remains unchanged, what will be the price of the bond 5 years from now? Question 15 options: $759 $778 $797 $816 $835
Suppose a 5-year bond with a 5% coupon rate, semiannual coupons and a face value of...
Suppose a 5-year bond with a 5% coupon rate, semiannual coupons and a face value of $1000 has a yield to maturity of 8% APR. What is the bond’s yield to maturity expressed as an effective semi-annual rate? What is the bond’s yield to maturity expressed as an effective annual rate (EAR)? What is the price of the bond? If the bond’s yield to maturity changes to 5% APR, what will the bond’s price be?
3) Smith purchases a 20 year, 8%, $1000 face value bond with a yield rate of...
3) Smith purchases a 20 year, 8%, $1000 face value bond with a yield rate of 10%. After the 10th coupon he sells the bond. If the new buyer keeps the bond until maturity (at which time she will receive the face value redemption and her last coupon) and her actual semiannual yield rate is also 10% then find her purchase price. Note: All bonds give semiannual coupons and the face value back at maturity. All rates are nominal semiannual...
You intend to purchase a 1-year, $1,000 face value bond. Coupon rate of this bond is...
You intend to purchase a 1-year, $1,000 face value bond. Coupon rate of this bond is 6 %. Market interest rate is 12 percent. Coupon payments are semiannual, what is the duration of the bond? (Answer is rounded)
Suppose that you buy a 1-year maturity bond with a coupon of 9.0% paid annually. If...
Suppose that you buy a 1-year maturity bond with a coupon of 9.0% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 2%? 4%? 11.00%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Real Rate of Return 2% 4% 11.00%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT