Question

Calculate the fair present values of the following bonds, all of which pay interest semiannually, have...

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.)

Homework Answers

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

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
Calculate the fair present values of the following bonds, all of which pay interest semiannually, have...
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...
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...
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...
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)...
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)...
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)...
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)...
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...
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...
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
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT