Question

What is the value of a bond that has a par value of $1,000, a coupon...

What is the value of a bond that has a par value of $1,000, a coupon rate of 8.85 percent (paid annually), and that matures in 10 years? Assume a required rate of return on this bond is 9.02 percent.

Fresh Water, Inc. sold an issue of 13-year $1,000 par value bonds to the public. The bonds have a 8.17 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 9.07 percent. What is the current market price of the bonds?

Homework Answers

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
Fresh Water, Inc. sold an issue of 27-year $1,000 par value bonds to the public. The...
Fresh Water, Inc. sold an issue of 27-year $1,000 par value bonds to the public. The bonds have a 7.29 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 10.99 percent. What is the current market price of the bonds?
A bond that matures in 11 years has a ​$1,000 par value. The annual coupon interest...
A bond that matures in 11 years has a ​$1,000 par value. The annual coupon interest rate is 9 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually? a. The value of this bond if it paid interest annually would be? (Round to the nearest​ cent.)
What is the value of a bond that has a par value of $1,000, a coupon...
What is the value of a bond that has a par value of $1,000, a coupon rate of 10.86 percent (paid annually), and that matures in 14 years? Assume a required rate of return on this bond is 9.65 percent. How do I do this in Excel?
What is the value of a bond that has a par value of $1,000, a coupon...
What is the value of a bond that has a par value of $1,000, a coupon rate of 10.83 percent (paid annually), and that matures in 15 years? Assume a required rate of return on this bond is 10.33 percent. Round the answer to two decimal places.
(Bond valuation) A bond that matures in 10years has a $1,000 par value. The annual coupon...
(Bond valuation) A bond that matures in 10years has a $1,000 par value. The annual coupon interest rate is 9 percent and the? market's required yield to maturity on a? comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest? annually? What would be the value of this bond if it paid interest? semiannually?
 ​(Bond valuation) A bond that matures in 20 years has a ​$1,000 par value. The annual...
 ​(Bond valuation) A bond that matures in 20 years has a ​$1,000 par value. The annual coupon interest rate is 7 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually?
A bond that matures in 20 years has a $1,000 par value. The annual coupon interest...
A bond that matures in 20 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually? The value of this bond if it paid interest annually would be $_ The value of this bond if it...
You own a bond with a 5% coupon rate and $1,000 par value. Assume payments are...
You own a bond with a 5% coupon rate and $1,000 par value. Assume payments are made semi-annually and the bond matures in 20 years. The annual market interest rate is 9% percent. What is the value of the bond?
Hello can you provide assistance with the problems below ? 1. Fingen's 16​-year, $1,000 par value...
Hello can you provide assistance with the problems below ? 1. Fingen's 16​-year, $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1,150 and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. a. Compute the​ bond's yield to maturity. b. Determine the value of the bond to​ you, given your required rate of return. c. Should you purchase the​ bond? 2. A bond that matures in 18 years...
A bond that matures in 14 years has a ​$1000 par value. The annual coupon interest...
A bond that matures in 14 years has a ​$1000 par value. The annual coupon interest rate is 9 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually? a.  The value of this bond if it paid interest annually would be ​$?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT