Question

The bond of XYZ corp. has left 7 years to maturity. This bond makes monthly payments...

The bond of XYZ corp. has left 7 years to maturity. This bond makes monthly payments with 6% coupon rate and the YTM is 12%. What is the current value of this bond?

Homework Answers

Answer #1

So, Current Value of Bond = $716.7577362

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
A bond pays a 4% coupon and makes semi-annual payments. The bond has 15 years to...
A bond pays a 4% coupon and makes semi-annual payments. The bond has 15 years to maturity and a YTM of 7%. What is the current bond price?
A bond pays a 5% coupon and makes semi-annual payments. The bond has 10 years to...
A bond pays a 5% coupon and makes semi-annual payments. The bond has 10 years to maturity and a YTM of 6%. What is the current bond price?
Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is...
Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 8.3 percent and the maturity date is 7 years. What is the market price of a $1,000 face value bond? A $1000 face value bond has two years left to maturity, 5.6% coupon rate with annual coupons, and is currently trading at $915. What is the YTM on this bond?
XYZ Corp has bonds on the market with 7.5 years to maturity, a YTM of 6...
XYZ Corp has bonds on the market with 7.5 years to maturity, a YTM of 6 percent, and a current price of $1,040. The face value is $1,000. The bonds make semiannual payments. What must be the dollar coupons (dollar amount, not percentage) paid every six-months on XYZ’s bonds? Hint: A YTM of 6% for a semiannual bond is a reporting convenience. It implies the actual 6 month return is 3%. You need to use the annuity formula to solve...
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?
Bond James Bond Corporation has 7 percent coupon bonds that have 14 years left to maturity....
Bond James Bond Corporation has 7 percent coupon bonds that have 14 years left to maturity. The bonds make annual payments to their holders. The YTM on these bonds is 10 percent. Calculate the current price for each of the Bond James Bond Corporation's bonds. A. $1,030.00 B. $1,266.36 C. $740.05 D. $779.00 E. $817.95
A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for...
A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for the bond is 3.2 percent, the YTM (yield to maturity) is 4.5 percent, the par value is $1,000 and the bond has 12 years to maturity. If interest rates remain unchanged, what will the price of the bond be in 3 years?
A bond currently has a stated price of 140. It has 11 years left to maturity...
A bond currently has a stated price of 140. It has 11 years left to maturity and a stated coupon rate of 8%. Coupon payments are made semiannually. If you purchase the bond today, what YTM will you earn?
Sun Tans Co. has 7 percent coupon bonds on the market that has 4 years left...
Sun Tans Co. has 7 percent coupon bonds on the market that has 4 years left to maturity. Face value of the bond is $1,000. The bonds make annual coupon payments. If the YTM on these bonds is 11%, what is the current bond price?
8) Assume that a bond has a coupon rate of 10 percent, makes annual coupon payments,...
8) Assume that a bond has a coupon rate of 10 percent, makes annual coupon payments, and has a par value of $1,000. Calculate the bond’s value under the following conditions. The bond matures in 5 years and the YTM is 5%: The bond matures in 5 years and the YTM is 10%: The bond matures in 5 years and the YTM is 15%: The bond matures in 15 years and the YTM is 5%: The bond matures in 15...