Question

Kasey Corp. has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments....

Kasey Corp. has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond has a yield to maturity of 6.1 percent, a par value of $2,000, and matures in 15 years. What is the quoted price of the bond?

Homework Answers

Answer #1
                  K = Nx2
Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k]     +   Par value/(1 + YTM/2)^Nx2
                   k=1
                  K =15x2
Bond Price =∑ [(6.4*2000/200)/(1 + 6.1/200)^k]     +   2000/(1 + 6.1/200)^15x2
                   k=1
Bond Price = 2058.42
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
Kasey Corp. has a bond outstanding with a coupon rate of 5.88 percent and semiannual payments....
Kasey Corp. has a bond outstanding with a coupon rate of 5.88 percent and semiannual payments. The bond has a yield to maturity of 4.5 percent, a par value of $2,000, and matures in 23 years. What is the quoted price of the bond?
Kasey Corp. has a bond outstanding with a coupon rate of 5.96 percent and semiannual payments....
Kasey Corp. has a bond outstanding with a coupon rate of 5.96 percent and semiannual payments. The bond has a yield to maturity of 5.3 percent, a par value of $2,000, and matures in 19 years. What is the quoted price of the bond?
Kasey Corp. has a bond outstanding with a coupon rate of 5.8 percent and semiannual payments....
Kasey Corp. has a bond outstanding with a coupon rate of 5.8 percent and semiannual payments. The bond has a yield to maturity of 6.8 percent, a par value of $2,000, and matures in 12 years. What is the quoted price of the bond?
Kasey Corp. has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments....
Kasey Corp. has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond has a yield to maturity of 4.9 percent, a par value of $1,000, and matures in 21 years. What is the quoted price of the bond?
Kasey Corp. has a bond outstanding with a coupon rate of 5.8 percent and semiannual payments....
Kasey Corp. has a bond outstanding with a coupon rate of 5.8 percent and semiannual payments. The bond has a yield to maturity of 6.9 percent, a par value of $1,000, and matures in 13 years. What is the quoted price of the bond? 1,827.86 1,399.16 183.03 186.16 139.92
Whatever, Inc., has a bond outstanding with a coupon rate of 5.74 percent and semiannual payments....
Whatever, Inc., has a bond outstanding with a coupon rate of 5.74 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 20 years. What is the market price if the bond has a par value of $1,000? Multiple Choice A. $960.20 B. $959.04 C. $958.73 D. $977.90
Lincoln Park Co. has a bond outstanding with a coupon rate of 5.66 percent and semiannual...
Lincoln Park Co. has a bond outstanding with a coupon rate of 5.66 percent and semiannual payments. The yield to maturity is 6.3 percent and the bond matures in 16 years. What is the market price if the bond has a par value of $2,000?
Otobo, Inc., has a bond outstanding with a coupon rate of 8.1 percent and semiannual payments....
Otobo, Inc., has a bond outstanding with a coupon rate of 8.1 percent and semiannual payments. The yield to maturity is 5.0 percent and the bond matures in 10 years. What is the market price if the bond has a par value of $1000? 1468.7 1112.16 1098.84 1445.93 1241.63
Whatever, Inc., has a bond outstanding with a coupon rate of 5.78 percent and semiannual payments....
Whatever, Inc., has a bond outstanding with a coupon rate of 5.78 percent and semiannual payments. The yield to maturity is 6.5 percent and the bond matures in 22 years. What is the market price if the bond has a par value of $1,000? $918.97 $916.95 $917.76 $934.68 $916.35
Lincoln Park Co. has a bond outstanding with a coupon rate of 6.02 percent and semiannual...
Lincoln Park Co. has a bond outstanding with a coupon rate of 6.02 percent and semiannual payments. The yield to maturity is 5.9 percent and the bond matures in 16 years. What is the market price if the bond has a par value of $2,000? $2,027.75 $2,065.13 $2,024.63 $2,030.42 $2,024.42
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT