Question

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 percent. What is the price of bond B?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

price of bond B is $888.35

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
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...
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...
1. Castor owns one bond A and one bond B. The total value of these two...
1. Castor owns one bond A and one bond B. The total value of these two bonds is 2,593.9 dollars. Bond A pays semi-annual coupons, matures in 14 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 15 years, has a face value of 1,000 dollars, has a yield-to-maturity of 4.98 percent, and pays its next coupon in one year. Both bonds have a coupon rate...
HW9 #7) Castor owns one bond A and one bond B. The total value of these...
HW9 #7) Castor owns one bond A and one bond B. The total value of these two bonds is 2,473.41 dollars. Bond A pays semi-annual coupons, matures in 15 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 17 years, has a face value of 1,000 dollars, has a yield-to-maturity of 7.08 percent, and pays its next coupon in one year. Both bonds have a coupon...
Bond A and B both pay annual coupons, mature in nine years, have a face value...
Bond A and B both pay annual coupons, mature in nine years, have a face value of thousand dollar, pay their next couponin 12 months, and have the same yield to maturity. Bond a has a coupon rate of 6.5 percent and is priced at $1055.13. bond B has a coupon rate of 7.4 percent. what is the price of bond B?
A bond has a coupon rate of 4.6% and pays coupons semi-annually. The bond matures in...
A bond has a coupon rate of 4.6% and pays coupons semi-annually. The bond matures in 5 years and the yield to maturity on similar bonds is 2%. Is this a par, premium or discount bond? What is the price of the bond?   What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond Coupon Rate Yield Price Quote t Apple B ? 3.7% 99.09 21
A bond has a coupon rate of 3.6% and pays coupons semi-annually. The bond matures in...
A bond has a coupon rate of 3.6% and pays coupons semi-annually. The bond matures in 3 years and the yield to maturity on similar bonds is 4.3%. What is the price of the bond?
A bond has a coupon rate of 2.1% and pays coupons semi-annually. The bond matures in...
A bond has a coupon rate of 2.1% and pays coupons semi-annually. The bond matures in 4 years and the yield to maturity on similar bonds is 3.7%. What is the price of the bond?
A Ford Motor Co. coupon bond has a coupon rate of 6.55​%, and pays annual coupons....
A Ford Motor Co. coupon bond has a coupon rate of 6.55​%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 28 years from tomorrow. The yield on the bond issue is 6.4​%. At what price should this bond trade​ today, assuming a face value of ​$1,000​?
A Ford Motor Co. coupon bond has a coupon rate of 6.7​%, and pays annual coupons....
A Ford Motor Co. coupon bond has a coupon rate of 6.7​%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 24 years from tomorrow. The yield on the bond issue is 6.35​%. At what price should this bond trade​ today, assuming a face value of ​$1,000​?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT