Question

  Consider a coupon bond that pays $350 every year and repays its principal amount of $5,000...


  Consider a coupon bond that pays $350 every year and repays its principal amount of $5,000 at the end of four years. If the annual rate of discount is 6 percent, what is the present value of the bond?
      
$5,173.26
      
$4,542.33
      
$6,548,15
      
$5,534,18

Business   Finance   
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
HW9 #6) Bond A pays annual coupons, pays its next coupon in 1 year, matures in...
HW9 #6) Bond A pays annual coupons, pays its next coupon in 1 year, matures in 12 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 13 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 8.46 percent and is priced at 836.24 dollars. Bond B has a coupon rate of 7.72...
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 17 years,...
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 17 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 15 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 9.28 percent and is priced at 998.32 dollars. Bond B has a coupon rate of 9.62 percent. What...
A revenue bond matures in 15 year, pays a 5.5 percent coupon rate every 6 months,...
A revenue bond matures in 15 year, pays a 5.5 percent coupon rate every 6 months, and has a face value of $5,000. The market interest rate for similar risk and maturity municipal bonds is 4 percent. What is the current price of the bond? What would the price be if the market was 6 percent?
Consider a 3-year bond that pays a coupon of $500 at the end of each year....
Consider a 3-year bond that pays a coupon of $500 at the end of each year. The principal of the bond is $10,000. (a) What is the coupon rate for this bond? (b) If the market interest rate that prevails when the bond is initially issued is 2 percent per annum, what will be the price (presentvalue) of the bond? (c) Suppose that the maturity date on the bond was 300 years. If the market interest rate is 2 percent...
Calculate the price of a 5% coupon, $1000 face value, 20-year bond that pays annual coupons...
Calculate the price of a 5% coupon, $1000 face value, 20-year bond that pays annual coupons if the appropriate annual discount rate is 3%. Suppose the annual discount rate on this bond rises to 7% after three years (at the beginning of year 4) and you sell the bond at the end of that year (at the end of year 4). What return did you earn for the four years that you held this bond? Do not use excel or...
Adam borrows an amount at an annual interest rate of 7%. He repays all interest and...
Adam borrows an amount at an annual interest rate of 7%. He repays all interest and principal in a lump sum at the end of ten years from now. Adam uses the amount borrowed to purchase a 5-year bond with a par value of 1, 000 with coupons at a nominal rate of 10% payable semiannually, with the first coupon paid at the end of 6-month period from now. The bond is redeemed at par and Adam’s yield rate for...
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years...
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years and has a face value of one thousand. Bond B pays semi annual coupons pays its next coupon in six months, matures in three years and has a face value of one thousand. The two bonds have the same yield to maturity. Bond A has a coupon rate of 7.70 percent and is priced at $736.19. Bond B has a coupon rate of 6.40...
Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to maturity is 7%...
Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to maturity is 7% and is selling for $1,095.452? Find the coupon rate of this bond.
(8 marks) Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to maturity...
Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to maturity is 7% and is selling for $1,095.452? Find the coupon rate of this bond.
3. (8 marks) Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to...
3. Consider a 6-year, $1,000 par bond that pays semi-annual coupon. Its yield to maturity is 7% and is selling for $1,095.452? Find the coupon rate of this bond.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT