Question

Assume semi-annual payments. What is the price for A bond? (Note: N is given, do not...

Assume semi-annual payments. What is the price for A bond? (Note: N is given, do not double it)

Bond   

Coupon Rate   

Yield

Price   

N   

A

4.7%

4.66%

4.338
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Face Value of Bond = $1000

Semi-annual coupon payment = $1000*4.7%*1/2 = $23.50

Semi-annual Yield rate = 4.66%/2 = 2.33%

Calculating the Current Price of Bond using Excel "PV" function:-

So, the price for A bond is $1000.82

If you need any clarification, you can ask in comments.    

If you like my answer, then please up-vote as it will be motivating       

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
What is the price of a bond paying a 6% semi-annual coupon bond if the yield...
What is the price of a bond paying a 6% semi-annual coupon bond if the yield on the bond is 7.5% and the bond has 3 years to maturity? Assume the face value of the bond is $1000.
PART 2 - BOND CALCULATIONS a) What is the price of a $1,000 par value, semi-annual...
PART 2 - BOND CALCULATIONS a) What is the price of a $1,000 par value, semi-annual coupon bond with 16 years to maturity, a coupon rate of 5.40% and a yield-to-maturity of 5.90%? b) What is the price of a $1,000 par value, 10 year, annual coupon bond with a 5.80% coupon rate and a yield to maturity of 5.50% c) A 10-year, 6.30% semi-annual coupon bond today and the current market rate of return is 5.60%. The bond is...
Casey corporation has a bond outstanding with a coupon rate of 5.56% and semi annual payments....
Casey corporation has a bond outstanding with a coupon rate of 5.56% and semi annual payments. the bond has a yield to maturity of 6.7% a par value of 2000 and matures and 11 years. what is the quoted price of the bond
What is the Coupon Rate of a bond that makes semi-annual coupon payments and has a...
What is the Coupon Rate of a bond that makes semi-annual coupon payments and has a current price of $967.70, a par value of $1000, a YTM of 8.2%, and has 13.5 years until maturity?
17. Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000,...
17. Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000, a current market price of $989, and a 5 percent coupon. Which one of the following statements is correct concerning this bond? A. The current coupon rate is greater than 5 percent. B. The bond is a money market instrument. C. The bond will pay less annual interest now than when it was originally issued. D. The current yield exceeds the coupon rate. E....
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
Consider a coupon bond with semi-annual coupon rate 6%, M = 100, and n = 20....
Consider a coupon bond with semi-annual coupon rate 6%, M = 100, and n = 20. Assume the semi-annual yield to maturity y = 6%. Let ? ′ denote the reinvestment rate of the coupon payments. Let ? ′ denote the interest rate at the time of sale. Also, assume your holding period to equal the Macaulay duration of the bond rounded to the closest integer. Calculate the total future dollars at the end of the holding period under the...
A 3.375%, 10-year bond with semi-annual coupon payments and a face value of $10,000 has just...
A 3.375%, 10-year bond with semi-annual coupon payments and a face value of $10,000 has just been sold at par. What are the cash flows to the bond? What is the (annual) required return on the bond? If a 10-year zero-coupon bond were marketed at the same required return as in part b), what would be the price of a $10,000 face value bond? Immediately after issuance, if the required return increases by 0.50% per year, compounded semi-annually, what will...
For the? following, assume the normal case that bond coupons are? semi-annual: ? a) What is...
For the? following, assume the normal case that bond coupons are? semi-annual: ? a) What is the yield to maturity? (YTM) on a 9?-year, 6.8?% coupon bond if the bond is currently selling for? $1,000? ? (Assume semi-annual? coupons) % ?b) What is the YTM on the above bond if the value today is ?$961.08?? % ?c) For the bond in ?a) above?, what is your realized? (actual) EAR if immediately after you purchase the bond market? rates, and the...
1. A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the...
1. A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current value of the bond in the marketplace is $400, then what is the Yield-to-Maturity (YTM)? 2. How much do you pay for a zero coupon government bond that has a term of 30 years, an interest rate of 9%, and a par value of $1000. 3. A taxable bond has a yield of 9% and a municipal bond has a yield of 4.6%....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT