Question

How much would you pay for a $30,000, 5 yr, 5% bond if you want a...

How much would you pay for a $30,000, 5 yr, 5% bond if you want a return of 7%? Assume that bond pays interest every 6 months)

Homework Answers

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
How much would you be willing to pay for a $1,000 par value bond paying $40...
How much would you be willing to pay for a $1,000 par value bond paying $40 interest every six months and maturing in 20 years, assuming you wanted to earn a 9% rate of return?
1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and...
1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and 16 years to maturity if the interested rate is 6%? 2) how much should you pay for a $1000 zero coupon bond with 5 years to maturity if the interest rate is 5%? 3) what is the rate of return for an investor who pays $1061 for a 3 year bond with an annual coupon payment of 6% and sells the bond 1 year...
How much would an investor expect to pay for a $1,000 par value bond with a...
How much would an investor expect to pay for a $1,000 par value bond with a 5% p.a. coupon rate (paid semianually) that matures in 5 years and 4 months if the current market interest rate on bonds of this type is 7% p.a. compounded semianually? Calculate the invoice price, the accrued interest and the clean price.
How much would you pay for a perpetual bond that pays an annual coupon of $50...
How much would you pay for a perpetual bond that pays an annual coupon of $50 per year and yields on competing instruments are 5 %? You would pay $1000. If competing yields are expected to change to 15 %, what is your expected capital gain (or loss)?
How much would you pay for a 8.6% Corp Bond that has a remaining maturity of...
How much would you pay for a 8.6% Corp Bond that has a remaining maturity of 10 years if the investors' required rate of return is 6%?
How much would you pay for a perpetual bond that pays an annual coupon of $200...
How much would you pay for a perpetual bond that pays an annual coupon of $200 per year and yields on competing instruments are 10%. If the interest rate is expected to fall to 8% next year, what is your expected capital gain?
How much would you pay for a bond that has a 4% coupon rate, matures in...
How much would you pay for a bond that has a 4% coupon rate, matures in 15 years and market interest rates have risen to 6%? (use semiannual payments) Please Explain
PLEASE TRY TO ANSWER ALL OF THE NUMBERED QUESTIONS 1. How much would an investor earn...
PLEASE TRY TO ANSWER ALL OF THE NUMBERED QUESTIONS 1. How much would an investor earn on a stock purchased one year ago for $70 if it paid an annual cash dividend of $4.35 and had just been sold for $78.50? Would the investor have experienced a capital gain? Explain. 2. An investor buys a bond for $1,000. The bond pays $40 in interest every six months. After two years, the investor sells the bond for $980. Describe the types...
How much would you have to deposit in a savings account each month at 5% interest/yr....
How much would you have to deposit in a savings account each month at 5% interest/yr. compounded monthly, to have $1,000,000.00 in the account at the end of 40 years? Note: your deposits will be made at the end of each month.
Match the yield to maturity to the terms of the bond. All of these bonds pay...
Match the yield to maturity to the terms of the bond. All of these bonds pay interest twice a year.                                                 -A.B.C.D.E. "A $1,000 par value bond that matures in 6 years is currently selling for $1,029.03. The bond pays $40.00 of interest every six months."                                                 -A.B.C.D.E. "A $1,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT