Question

A bond was created at 13.5% nominal paid semiannually. The face value of the bond is...

A bond was created at 13.5% nominal paid semiannually. The face value of the bond is $9000. The bond is a 10 year bond. As the bond was issued, the current nominal interest rate in the market is 6.0% compounded monthly. What price should be paid for the bond?

Homework Answers

Answer #1

Kindly Upvote!

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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?
A company releases a​ five-year bond with a face value of​ $1,000 and coupons paid semiannually....
A company releases a​ five-year bond with a face value of​ $1,000 and coupons paid semiannually. If market interest rates imply a YTM of 10​%, what should be the coupon rate offered if the bond is to trade at​ par?
A company releases a? five-year bond with a face value of? $1000 and coupons paid semiannually....
A company releases a? five-year bond with a face value of? $1000 and coupons paid semiannually. If market interest rates imply a YTM of 8%, which of the following coupon rates will cause the bond to be issued at a? premium? A. 6% B.10% C. 8% D. 5%
A bond with $1000 face value, 6% of coupon rate, coupons are paid semiannually, 20 years...
A bond with $1000 face value, 6% of coupon rate, coupons are paid semiannually, 20 years of maturity, the YTM is 5%. What is the price of the bond If the risk free rate goes up by 0.5%, what will be the price of the bond. If you know that the firm will call the bond at the end of year 10, for a value of $1200, what will be the current price?
A 10-year, 7 percent coupon bond pays interest semiannually. The bond has a face value of...
A 10-year, 7 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 6 percent from the current rate of 5.5 percent?
Your company issued a 10 percent coupon rate bond with the face value of $1,000. The...
Your company issued a 10 percent coupon rate bond with the face value of $1,000. The bond pays interest rate semiannually, and the bond has 20-year to maturity, the market required interest rate on the bond is 8 percent. (2 points) What is the current price of this bond?
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent?
A 16-year, 4.5% coupon bond pays interest semiannually. The bond has a face value of $1,000....
A 16-year, 4.5% coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7% from the current rate of 5.5%? PLEASE TRY TO BE A SIMPLE AS POSSIBLE, preferably using excel!
A 5% coupon rate bond issues by Google has a face value of $1000, pays interest...
A 5% coupon rate bond issues by Google has a face value of $1000, pays interest semiannually, and will mature in 20 years. If the current market rate is 2% interest compounded semiannually, what is the bond’s price?
You intend to purchase a 5-year, $3,000 face value bond. The coupon rate of this bond...
You intend to purchase a 5-year, $3,000 face value bond. The coupon rate of this bond is 12%. If your nominal annual required rate of return (nominal market interest) is 10 percent and the bond pays coupon semiannually, how much should you be willing to pay for this bond at the end of the second year? (Answer is rounded)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT