Question

Compute Bond Price Compute the price of a 4.75 percent coupon bond
with 15 years left to maturity and a market interest rate of 6.25
percent. (Assume interest payments are semi-annual and par value is
$1,000.) Is this a discount or premium bond?

Answer #1

Price can be calculated using the PV function of excel. Inputs are:

Rate = interest rate per period = semin annual interest rate = 6.25% / 2 = 3.1250%

Nper = Number of periods = number of half years = 2 x 15 = 30

PMT = payment per period = semin annual coupon = 4.75%/2 x Par value = 4.75%/2 x 1,000 = 23.75

FV = future value = par value = 1000

Hence, price = - PV (Rate, Nper, PMT, FV) = - PV (3.125%, 30, 23.75, 1000) = $ 855.34

Since price < par value, this is a discount bond.

Compute the price of a 5 percent coupon bond with 20 years left
to maturity and a market interest rate of 6.25 percent. (Assume
interest payments are semi-annual.) Which statement is correct?
The bond is a premium bond selling at $858.41
The bond is a discount bond selling at $1213.65
The bond is a premium bond selling at $1213.65
The bond is a discount bond selling at $858.41

Calculate the price of a 5.5 percent coupon bond with 15 years
left to maturity and a market interest rate of 10.0 percent.
(Assume interest payments are semiannual.) Is this a discount or
premium bond?

A) Compute the price of a 6.4 percent coupon bond with 10 years
left to maturity and a market interest rate of 8.0 percent. (Assume
interest payments are semiannual.) (Do not round
intermediate calculations. Round your final answer to 2 decimal
places.)
B) Is this a discount or premium bond?
discount bond
premium bond

Calculate the price of a 6.5 percent coupon bond with 17 years
left to maturity and a market interest rate of 10.5 percent.
(Assume interest rates are semiannual and par value is $1,000.) Is
this a discount or premium bond?

compute the price of a 4.6% coupon bond with 10 years
left to maturity and a market interest rate of 7% assume interest
payments are semi annual

compute the price if a 5.7% coupon bond with 15 years left to
maturity and a market interest rate of 9.2% (assume interest
payments are semiannual)
please show work

A 5 percent coupon bond has 20 years left to maturity and has a
price quote of 95 (quoted bond price is $950). The bond can be
called in five years and if called would generate a yield to call
of 8 percent. Compute the bond's current yield, yield to maturity
and call price. (Assume interest payments are paid semi-annually
and a par value of $1,000.)

A 5 percent coupon bond has 20 years left to maturity and has a
price quote of 95 (quoted bond price is $950). The bond can be
called in five years and if called would generate a yield to call
of 8 percent. Compute the bond's current yield, yield to maturity
and call price. (Assume interest payments are paid semi-annually
and a par value of $1,000.)

A 5 percent coupon bond has 20 years left to maturity and has a
price quote of 95 (quoted bond price is $950). The bond can be
called in five years and if called would generate a yield to call
of 8 percent. Compute the bond's current yield, yield to maturity
and call price. (Assume interest payments are paid semi-annually
and a par value of $1,000.)

Compute the price of a bond with 8 years to maturity, a coupon
rate of 4.8%, and a market interest rate of 6.5% if the bond pays
interest payments semi-annually on the $1,000 par value
. $1,100.00
$940.96
$895.24
$599.52

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