Question

A $1000 par value bond with 3 years to maturity has a coupon rate of 6%...

A $1000 par value bond with 3 years to maturity has a coupon rate of 6% pa paid annually. compute the bond price if the interest rate (compounded semi annually) are 7%, 8% and 9% respectively for year 1, 2 and 3.

Homework Answers

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
A bond has a face value $1000, maturity of 10 years, and a coupon rate of...
A bond has a face value $1000, maturity of 10 years, and a coupon rate of 8%, paid semi-annually. Assuming the yield-to-maturity is 10%, the current price of the bond is:
consider a bond with $1000 par value, 10% coupon rate and three years to maturity. assume...
consider a bond with $1000 par value, 10% coupon rate and three years to maturity. assume 12% required rate of return. 1-compute the appropriate price for this bond if coupons are paid annually at 10%. 2-compute the appropriate price for this bond if coupons are paid semiannually at 10%. 3- comment on the difference in results between 1 and 2.?
A bond with 9 years to maturity and a coupon rate of 7.5% has a par,...
A bond with 9 years to maturity and a coupon rate of 7.5% has a par, or face, value of $1,000. Interest is paid semi-annually. If you required a return of 6% on this bond, what is the value of this bond to you? (3 points) Compare the basic characteristics of Eurobonds and Local bonds. (2 Points) If the required return on a bond differs from its coupon interest rate, describe the behavior of the bond value over time as...
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually....
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually. What is the value of the bond if your required rate of return is 5%? 2. A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid semi-annually. What is the value of the bond if your required rate of return is 5%? 3.  A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid semi-annually. What...
4. A bond has a face value of $1000, a coupon rate of 6%, paid semi-annually,...
4. A bond has a face value of $1000, a coupon rate of 6%, paid semi-annually, has 23 years to maturity, and the market rate of interest is 7%. What is the value of the bond today?
A bond has a par value of $1000, a time to maturity of 12 years and...
A bond has a par value of $1000, a time to maturity of 12 years and a coupon rate of 6% with interest paid annually. If the current market price is $925, what will be the approximate capital gain yield of this bond over the next year if its yield to maturity remains unchanged? Answer in percentages with two decimal places
1)What is the price of a bond if the par value is $1000, the coupon rate...
1)What is the price of a bond if the par value is $1000, the coupon rate is 5%(paid semi-annually), has 20 years to maturity and the market rate (yield to maturity per annum) is 8%? A. $683.11 B. $703.11 C. $813.11 D. $923.11 E. 1063.11 2) What is the coupon rate of a bond with a par value of $1000, it is currently selling for $800, has 15 years to maturity and the market rate (yield to maturity) is 10%...
A bond that matures in 14 years has a ​$1000 par value. The annual coupon interest...
A bond that matures in 14 years has a ​$1000 par value. The annual coupon interest rate is 9 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually? a.  The value of this bond if it paid interest annually would be ​$?
What is the present value of a $1000 par value bond that pays 7% coupon rate,...
What is the present value of a $1000 par value bond that pays 7% coupon rate, payable semi-annually and it matures in 15 years? The yield to maturity for this bond is 6%. $1,224.20 $1,102.18 $1,098.00 $1,097.12
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and...
Bond A has 2 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond B has 10 years to maturity, 5% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Bond C has 10 years to maturity, 4% coupon rate, 5% YTM, $1000 par value, and semiannual coupons. Which comparison is TRUE? A. Bond A has higher price sensitivity than Bond B B. Bond C has higher price sensitivity than Bond A C. Bond...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT