Question
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
|
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 20 years to maturity, and a coupon rate of 6.2 percent paid annually. |
|
If the yield to maturity is 7.3 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Homework Answers
Answer #1
We have the bond price formula:
Where,
C = Periodic coupon payment,
P = Par value of bond,
r = Yield to maturity
n = No. of periods till maturity
C = 1000 * 6.2% = € 62.00
Substituting the values, we get:
Therefore, current price of the bond is € 886.13
Not the answer you're looking for?
Similar Questions
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 15 years to maturity, and a coupon rate of
7.3 percent paid annually. If the yield to maturity is 8.4 percent,
what is the current price of the bond?
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 20 years to maturity, and a coupon rate of
7.8 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current
price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Bond price...
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 10 years to maturity, and a coupon rate of
6.4 percent paid annually.
If the yield to maturity is 7.5 percent, what is the current
price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Price
€
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 25 years to maturity, and a coupon rate of
7.1 percent paid annually. If the yield to maturity is 8.2 percent,
what is the current price of the bond? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 25 years to maturity, and a coupon rate of
6.3 percent paid annually. If the yield to maturity is 7.4 percent,
what is the current price of the bond? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 25 years to maturity, and a coupon rate of
7.1 percent paid annually.
If the yield to maturity is 8.2 percent, what is the current
price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 25 years to maturity, and a coupon rate of
7.1 percent paid annually.
If the yield to maturity is 8.2 percent, what is the current
price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 15 years to maturity, and a coupon rate of
6.5 percent paid annually.
If the yield to maturity is 7.6 percent, what is the current
price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 10 years to maturity, and a coupon rate of
6.12 percent paid annually.
If the yield to maturity is 2.73 percent, what is the current
price of the bond?
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...
Even though most corporate bonds in the United States make
coupon payments semiannually, bonds issued elsewhere often have
annual coupon payments. Suppose a German company issues a bond with
a par value of €1,000, 25 years to maturity, and a coupon rate of
7.1 percent paid annually. If the yield to maturity is 8.2 percent,
what is the current price of the bond?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 14 minutes ago
asked 17 minutes ago
asked 19 minutes ago
asked 31 minutes ago
asked 31 minutes ago
asked 31 minutes ago
asked 31 minutes ago
asked 31 minutes ago
asked 31 minutes ago
asked 32 minutes ago
asked 36 minutes ago
asked 54 minutes ago