Question

Nesmith Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 18 years to maturity, and a 12% YTM. What is the bond's price? Round your answer to the nearest cent.

Answer #1

**Answer :**

This question needs to be solved using financial calculator (like Texas BA II plus)

In calculator:

Put 1000 and press FV : This is the amount we receive in future at maturity

Put 45 and press PMT : This is coupon amount we receive semi annually. ($1000*4.5%)

Put 6 and press I/Y : This is YTM or Discount rate for semiannual period (12% / 2)

Put 36 and press N : This is number of semiannual periods (18*2)

Now press CPT and then PV

**Answer comes to -780.69**

**Therefore $780.69 is the Bond's Price
Today.**

Therefore annual rate of interest is 7%

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 9% semiannual coupon, 15 years to maturity, and an 8% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 9% semiannual coupon, 14 years to maturity, and an 9.5% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value, an
9% semiannual coupon, 19 years to maturity, and an 11% YTM. What is
the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 12% semiannual coupon, 14 years to maturity, and a 7.5% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
an 12% semiannual coupon, 11 years to maturity, and an 11% YTM.
What is the bond's price? Round your answer to the nearest
cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 6% semiannual coupon, 15 years to maturity, and a 10% YTM. What
is the bond's price? Round your answer to the nearest cent.
$

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 10% semiannual coupon, 14 years to maturity, and an 8% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 6% semiannual coupon, 18 years to maturity, and an 8.5% YTM. What
is the bond's price?

BOND VALUATION
Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 11% semiannual coupon, 15 years to maturity, and an 9.5% YTM.
What is the bond's price? Round your answer to the nearest
cent.

Bond valuation Nesmith Corporation's outstanding bonds have a
$1,000 par value, a 6% semiannual coupon, 16 years to maturity, and
an 10.5% YTM. What is the bond's price? Round your answer to the
nearest cent.

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