Question

Assume a par value of $1,000. Caspian Sea plans to issue a 21.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 21.00 year, semi-annual pay bond that has a coupon rate of 4.00%. If the yield to maturity for the bond is 4.0%, what will the price of the bond be?

Answer format: Currency: Round to: 2 decimal places.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If coupon rate is same as YTM, the price of the bond = par value = 1000

no calculations required but still i am attaching the answer for the same with BA II PLUS calculator. Thumbs up please. Thank you

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
Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, semi-annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, semi-annual pay bond that has a coupon rate of 8.00%. If the yield to maturity for the bond is 8.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #4 A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded monthly? Submit Answer format: Percentage Round...
Assume a par value of $1,000. Caspian Sea plans to issue a 15.00 year, semi-annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 15.00 year, semi-annual pay bond that has a coupon rate of 7.85%. If the yield to maturity for the bond is 8.45%, what will the price of the bond be?
Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 8.17%. If the yield to maturity for the bond is 7.73%, what will the price of the bond be? Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, annual pay bond that has a coupon rate of 7.85%. If the yield to maturity for the bond is 8.19%, what will the price...
1. Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual...
1. Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.15%. If the yield to maturity for the bond is 7.61%, what will the price of the bond be? 2. A zero-coupon discount bond trades today at $600.00. The bond will mature in 5.00 years from today at a redemption value of $1,000.00. What yield to maturity will an investor receive if they purchase today?
The market price of a semi-annual pay bond is $963.53. It has 12.00 years to maturity...
The market price of a semi-annual pay bond is $963.53. It has 12.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond...
1 The market price of a semi-annual pay bond is $990.59. It has 20.00 years to...
1 The market price of a semi-annual pay bond is $990.59. It has 20.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 20.00 year, semi-annual pay...
The market price of a semi-annual pay bond is $991.30. It has 10.00 years to maturity...
The market price of a semi-annual pay bond is $991.30. It has 10.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 14.00 year, semi-annual pay bond...
Caspian Sea Drinks needs to raise $21.00 million by issuing bonds. It plans to issue a...
Caspian Sea Drinks needs to raise $21.00 million by issuing bonds. It plans to issue a 18.00 year semi-annual bond that has a coupon rate oof 5.20%. The yield to maturity on the bond is expected to be 4.83%. How many bonds must Caspian Sea issue? (Note: answer may not be a whole number, in reality a company would not issue part of a bond) ROUND TO 0 DECIMAL PLACES
Caspian Sea Drinks needs to raise $21.00 million by issuing bonds. It plans to issue a...
Caspian Sea Drinks needs to raise $21.00 million by issuing bonds. It plans to issue a 18.00 year semi-annual pay bond that has a coupon rate of 5.02%. The yield to maturity on the bond is expected to be 4.76%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.)
Caspian Sea Drinks needs to raise $21.00 million by issuing bonds. It plans to issue a...
Caspian Sea Drinks needs to raise $21.00 million by issuing bonds. It plans to issue a 18.00 year semi-annual pay bond that has a coupon rate of 5.10%. The yield to maturity on the bond is expected to be 4.90%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT