Question

A firm has outstanding bond that mature in 15 years. The bonds have a face value...

A firm has outstanding bond that mature in 15 years. The bonds have a face value of $1000, and a coupon rate of 5.2 percent The bonds make semiannual coupon payments. If the market yield on these bonds is 4.2 percent, what is the current bond price? (Round your answer to 2 decimal places. (e.g., 1032.16))
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
Bonita Limited has bonds outstanding that will mature in 6 years. The bonds have a face...
Bonita Limited has bonds outstanding that will mature in 6 years. The bonds have a face value of $1,000. The bonds pay interest semi-annually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $899.68. What is the yield to maturity that an investor who buys them today can expect to earn? (Round answer to 1 decimal place, e.g. 5.2%.) Yield to maturity% __________________ What is the effective annual yield? (Round answer to 2 decimal...
your firm has outstanding bonds with semi annual coupon payments and a face value of $1000....
your firm has outstanding bonds with semi annual coupon payments and a face value of $1000. the price today is $1075, the yield yo maturity is 8% and the bonds mature in 15 years. A) compute the annual coupon rate B) compute the capital gains yield C) is the bond a premium or discount? why? D) if the bond price goes up, what will happen to the coupon rate?
worldwide enterprises has outstanding bonds with a face value of 1000 expiring in 17years at a...
worldwide enterprises has outstanding bonds with a face value of 1000 expiring in 17years at a coupon rate of 9.8 percent. The bonds make semiannual payments. The yield to maturity on the bonds is 9.2 percent. What is the current bond price? 1098 1051.08 951.27 1042.16 1089.02
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity if the required return on these bonds is 3%? Consider a bond with par value of $1000, 25 years left to maturity, and a coupon rate of 6.4% paid annually. If the yield to maturity on these bonds is 7.5%, what is the current bond price? One year ago, your firm issued 14-year bonds with a coupon rate of 6.9%. The bonds make semiannual...
Mouse, Inc.’s outstanding bonds have a $1,000 par value, and they mature in 5 years. Their...
Mouse, Inc.’s outstanding bonds have a $1,000 par value, and they mature in 5 years. Their yield to maturity in 9%, based on semiannual payments, and the current market price is $853.61. What is the bond’s annual coupon rate?
The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of...
The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of $33.50 each on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is ________ percent, the current yield is ________ percent, and the yield to maturity is ________ percent. 6.70; 6.64; 6.52 6.55; 6.91; 6.75 6.70; 6.78; 6.57 6.55; 6.86; 6.60
A zero coupon bond, with a face value of $1,000, will mature in 15 years. The...
A zero coupon bond, with a face value of $1,000, will mature in 15 years. The current yield to maturity for this bond is 10%. If the yield to maturity drops by one percent, by what percentage will the market price rise or fall? a) +14.68% b) +12.80% c) +17.33% d) -14.68% e) -12.80%
A company's bonds mature in 8 years, have a face value of $1,000, and make an...
A company's bonds mature in 8 years, have a face value of $1,000, and make an annual coupon interest payment of $30.  The market requires an interest rate of 7% on these bonds. What is the current market price of the bond?
The outstanding bonds of International Plastics mature in 5 years and pay semiannual interest payments of...
The outstanding bonds of International Plastics mature in 5 years and pay semiannual interest payments of $40 on a $1,000 face value bond. The bonds are currently selling for $1,050. The coupon rate is _____ percent, the current yield is _____ percent, and the yield to maturity is _____ percent. Select one: a. 7.62; 8.00; 6.80 b. 8.00; 7.62; 6.80 c. 8.00; 7.62; 3.40 d. 4.00; 3.81; 3.40 e. 7.62; 8.00; 3.40
1. West Corp. issued 15-year bonds two years ago at a coupon rate of 8.2 percent....
1. West Corp. issued 15-year bonds two years ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM = % 2. Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT