Question

An Australian Government bond with a face value of $1,000 and an annual coupon rate of...

An Australian Government bond with a face value of $1,000 and an annual coupon rate of 5.5% matures in seven years, pays interest semi-annually, and has a yield to maturity of 6.2%. What is the price of the bond right after it makes its first coupon payment?

a. $947.21

b. $960.73

c. $945.08

d. $963.01

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A semi-annual bond has a face value of $1,000, a coupon rate of 7.2%, a yield...
A semi-annual bond has a face value of $1,000, a coupon rate of 7.2%, a yield to maturity of 5.5% and has 5 years remaining to maturity. What is the price of the bond?
1. Calculate the price of a bond with Face value of bond is $1,000 and: a....
1. Calculate the price of a bond with Face value of bond is $1,000 and: a. Bond yield of 8.4%, coupon rate of 7% and time to maturity is 5 years. Coupon is paid semi-annually (Bond 1) b. Bond yield of 7%, coupon rate of 8% and time to maturity is 4 years. Coupon is paid semi-annually c. Calculate the price of Bond 1 right after the 5th coupon payment.
An 8%, semi-annual coupon bond has a $1,000 face value and matures in 8 years. What...
An 8%, semi-annual coupon bond has a $1,000 face value and matures in 8 years. What is the current yield on this bond if the yield to maturity is 7.8%?
Johnston, Inc. is selling bonds for $775.37. Each bond has an 8% coupon rate and makes...
Johnston, Inc. is selling bonds for $775.37. Each bond has an 8% coupon rate and makes payments semi-annually. The bond matures in 25 years. What is the bond’s yield-to-maturity? Shieldsly, Inc. has a 9 percent coupon bond that matures in 5 years. The bond pays interest annually. What is the market price of a $1,000 face value bond if the yield to maturity is 7.56 percent? $1,126.64 $1,000.00 $1,146.13 $1,058.17 $363.55
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years.  The bond makes semi-annual coupon payments.  The bond’s yield to maturity is 9%.  In Excel, the =PV formula can be used to find the price of the bond.  Fill in the table with the appropriate values: RATE NPER PMT FV TYPE
A corporate bond has 17 years to maturity, a face value of $1,000, a coupon rate...
A corporate bond has 17 years to maturity, a face value of $1,000, a coupon rate of 5.3% and pays interest semiannually. The annual market interest rate for similar bonds is 3.2% and is quoted as a semi-annually compounded simple interest rate, i.e 1.6% per 6-month period. What is the price of the bond?
A bond pays annual interest. Its coupon rate is 9.6%. Its value at maturity is $1,000....
A bond pays annual interest. Its coupon rate is 9.6%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 6.6%. The modified duration of this bond is ______ years.
What is the value of a bond that pays a 6% semi-annual coupon, has a face...
What is the value of a bond that pays a 6% semi-annual coupon, has a face value of $1,000, matures in 20 years, and has a yield to maturity of 8%? Question 45 options: $803.64 $808.43 $805.12 $802.07
A 10-year bond has a face value of $1,000 with a 5% per annum coupon rate....
A 10-year bond has a face value of $1,000 with a 5% per annum coupon rate. The bond pays coupons semi-annually. The current yield to maturity of the bond is 4% per annum. After 5 years, the yield to maturity of the bond is predicted to increase to 6% per annum, what would be the value of the bond in Year 5?
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years.  The bond makes semi-annual coupon payments.  The bond’s yield to maturity is 9%.  In Excel, the =PV formula can be used to find the price of the bond.  Fill in the table with the appropriate values: RATE NPER PMT FV TYPE Repeat problem , but with annual coupon payments. RATE NPER PMT FV TYPE
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT