Question

Consolidated Cardboard, Inc. issued a 15-year, $1,000 par value bond with a coupon rate of 9%. The current yield to maturity on similar bonds is 11%. Calculate the price of Cardboard’s bond.

Answer #1

ABC Corp. has issued a $1,000 par value, 30-year bond at a
coupon rate of 4.22%, to be paid semiannually. The yield to
maturities on similar bonds are 8.34%, compounded
semi-annually.
What is the current bond price?

a
15 year bond with a 9% annual coupon rate is issued at 1,000. what
is the yield to maturity of bond?

GAR, Inc. has issued a $1,000 par 9% annual coupon bond that is
to mature in 14 years. If your required rate of return is 11%, what
price would you be willing to pay for the bond?
Calculate the value of a bond that is expected to mature in 18
years with a $1,000 face value. The coupon rate is 4%, and the
required rate of return is 8%. Interest is paid annually.
3. Wommack preferred stock sells for $75...

3. Harry’s Diamond Emporium issued a bond with a 20-year
maturity, a $1,000 par value, and a 10% coupon rate with
semi-annual payments. Three years after the bond was issued, the
going rate on similar risk bonds fell to 7 percent. It is expected
to stay at this level for the remainder of the bond’s life.
a. Calculate the current yield and the capital gains yield that
the bond will generate in the fourth year (Year 4) of its life....

c) CleanUp Industries Inc. is issuing a zero-coupon
bond that will have a maturity of thirty years. The bond's par
value is $1,000, and the current yield on similar bonds is 5.5%.
What is the expected price of this bond, using the semiannual
convention?
d) Free-Up Inc. has issued 30-year semiannual coupon
bonds with a face value of $1,000. If the annual coupon rate is 8%
and the current yield to maturity is 5%, what is the firm's current
price...

Calculate the current price of a $1,000 par value bond that has
a coupon rate of 7 percent, pays coupon interest annually, has 18
years remaining to maturity, and has a current yield to maturity
(discount rate) of 15 percent.

Calculate the current price of a $1,000 par value bond that has
a coupon rate of 9 percent, pays coupon interest annually, has 14
years remaining to maturity, and has a current yield to maturity
(discount rate) of 15 percent. (Round your answer to 2 decimal
places and record without dollar sign or commas).

A 10-year corporate bond has an annual coupon of 9% and a par
value of $1,000. The bond is currently selling at a premium of 20%
to par ($1,200). Which of the following statements is more likely
to be CORRECT?
a. The bond’s yield
to maturity is 9%.
b. The bond’s current
yield is 9%.
c. IF the bond’s
yield to maturity remains constant over the next year, an investor
owning the bond will earn a capital GAIN of 11%...

Company A issued 15-year, noncallable, 8% annual coupon bonds at
their par value of $1,000 one year ago. Today, the market interest
rate on these bonds is 8%. What is the current price of the bonds,
given that they now have 14 years to maturity?

The Chef Co. issued 15-year bonds one year ago today. The coupon
rate of the bonds was 4.8% and the bonds make semi-annual coupon
payments. The Yield-To-Maturity of these bonds is currently
5.3%.
Required: Calculate the current dollar price assuming a $1,000
par value.

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