Question

Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 10 years remaining to maturity, and have a required rate of return of 10 percent. The bond has a 5 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) The bond has a 7 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) The bond has a 10 percent coupon rate. (Do not round intermediate calculations.)

Answer #1

a). To find the current bond price, we need to put the following values in the financial calculator:

INPUT | 10x2=20 | 10/2=5 | (5%/2)x1,000=25 | 1,000 | |

TVM | N | I/Y | PV | PMT | FV |

OUTPUT | -688.44 |

Hence, Current Bond Price = $688.44

b). To find the current bond price, we need to put the following values in the financial calculator:

INPUT | 10x2=20 | 10/2=5 | (7%/2)x1,000=35 | 1,000 | |

TVM | N | I/Y | PV | PMT | FV |

OUTPUT | -813.07 |

Hence, Current Bond Price = $813.07

c). To find the current bond price, we need to put the following values in the financial calculator:

INPUT | 10x2=20 | 10/2=5 | (10%/2)x1,000=50 | 1,000 | |

TVM | N | I/Y | PV | PMT | FV |

OUTPUT | -1,000 |

Hence, Current Bond Price = $1,000

Calculate the fair present values of the following bonds, all of
which pay interest semiannually, have a face value of $1,000, have
10 years remaining to maturity, and have a required rate of return
of 12 percent.
The bond has a 5.8 percent coupon rate. (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))
The bond has a 7.8 percent coupon rate. (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g.,...

Calculate the fair present values of the following bonds, all of
which pay interest semiannually, have a face value of $1,000, have
10 years remaining to maturity, and have a required rate of return
of 11 percent.
The bond has a 5.4 percent coupon rate. (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g., 32.16))
The bond has a 7.4 percent coupon rate. (Do not round
intermediate calculations. Round your answer to 2 decimal places.
(e.g.,...

Calculate the fair present values of the following bonds, all of
which pay interest semiannually, have a face value of $1,000, have
8 years remaining to maturity, and have a required rate of return
of 14 percent.
A). The bound has a 6.6 percent coupon rate. (Don’t round
intermediate calculations, round answer to decimal places) B). The
bond has a 8.6 percent coupon rate. (Don’t round intermediate
calculations, round answer to 2 decimal places) C). The bond has a
14...

Calculate the fair present values of the following bonds, all of
which pay interest semiannually, have a face value of,$1000, have 5
years remaining to maturity, and have a required rate of return of
10 percent
the bond has a 6 percent coupon rate.
the bond has a 8 percent coupon rate.
the bond has a 10 percent coupon rate.
what do your answers to parts (a) through (c) say about the
relation between coupon rates and present values

Calculate the yield to maturity on the following bonds. a. A 9.5
percent coupon (paid semiannually) bond, with a $1,000 face value
and 20 years remaining to maturity. The bond is selling at $960.
(Do not round intermediate calculations. Round your answer to 3
decimal places. (e.g., 32.161)) Yield to maturity % per year b. An
10 percent coupon (paid quarterly) bond, with a $1,000 face value
and 10 years remaining to maturity. The bond is selling at $902.
(Do...

Calculate the yield to maturity
on the following bonds.
a.
A 8.7 percent coupon (paid semiannually) bond, with a $1,000
face value and 11 years remaining to maturity. The bond is selling
at $920. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
year
b.
An 5.8 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$910. (Do...

Calculate the yield to maturity
on the following bonds.
a.
A 8.2 percent coupon (paid semiannually) bond, with a $1,000
face value and 22 years remaining to maturity. The bond is selling
at $895. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to
maturity
% per
year
b.
An 5.3 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$915. (Do...

Calculate the yield to maturity on the following bonds.
a.
A 8.6 percent coupon (paid semiannually) bond, with a $1,000
face value and 10 years remaining to maturity. The bond is selling
at $915. (Do not round intermediate calculations. Round
your answer to 3 decimal places. (e.g., 32.161))
Yield to maturity
% per year
b.
An 5.7 percent coupon (paid quarterly) bond, with a $1,000 face
value and 10 years remaining to maturity. The bond is selling at
$911. (Do...

Calculate the fair present value of the following bonds, all of
which have a 2 percent coupon rate (paid semiannually), face value
of $1000, and a required rate of return (yield to maturity) of 6
percent.
a. The bond has 10 years remaining to maturity.
b. The bond has 15 years remaining to maturity.
c. The bond has 20 years remaining to maturity.
d. Wha do your answers say about the relationship between time
to maturity and present value?

Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 10 years to maturity, and a coupon rate of
6.4 percent paid annually.
If the yield to maturity is 7.5 percent, what is the current
price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Price
€

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 16 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago