Question

Bond valuation—Semiannual interest

Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually.

Bond |
Par Value |
Coupon interest rate |
Years to maturity |
Required stated annual return |
||||

A |
$1,000 |
9 |
% |
9 |
8 |
% |
||

B |
500 |
13 |
20 |
14 |
||||

C |
500 |
15 |
6 |
15 |

Answer #2

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

answered by: anonymous

Bond
valuation l—Semiannual
interest Calculate the value of each of the
bonds shown in the following table, all of which pay interest
semiannually. (Click on the icon located on the
top-right corner of the data table below in order to copy its
contents into a spreadsheet.)
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$1 comma 0001,000
77
%
1111
77
%
B
1 comma 0001,000
1313
2020
1111
C
100100
1616
55
1313

Bond-valuation
Semiannual interest
Find the value of a bond maturing in 7 years, with a 1,000$ par
value and a coupon interest rate of 14%(7% paid semiannually) if
the required return on similar-risk bonds is 17%
annual interest (8.5% paid semiannually).
The present value of the bond is _____
(Round to the nearest cent.)

Bond valuation long dash—Semiannual interest. Find the value of
a bond maturing in 7 years, with a $1,000 par value and a coupon
interest rate of 13% (6.5% paid semiannually) if the required
return on similar-risk bonds is 12% annual interest (6% paid
semiannually).
The present value of the bond is $?

Bond valuation-Semiannual interest Find the value of a bond
maturing in 10 years, with a $1000 par value and a coupon
interest rate of 8% (4% paid semiannually) if the required
return on similar-risk bonds is 18% annual interest left
parenthesis 9 % paid semiannually).
The present value of the bond is $

Calculate the value of the bond shown in the following table,
assuming it pays interest annually.
Par value
Coupon interest rate
Years to maturity
Required return
$1,000
8%
20
16%
A. The value of the bond is what????

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is the bond’s current market price?
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(Bond valuation) Fingen's 15-year, $1,000 par value bonds
pay 9 percent interest annually. The market price of the bonds is
$930 and the market's required yield to maturity on a
comparable-risk bond is 8 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?

(Bond valuation) Fingen's 15-year, $1,000 par value bonds
pay 9 percent interest annually. The market price of the bonds is
$930 and the market's required yield to maturity on a
comparable-risk bond is 8 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?

(Bond valuation) Hamilton, Inc. bonds have a coupon rate of 15
percent. The interest is paid semiannually, and the bonds mature
in 12 years. Their par value is $1,000. If your required rate of
return is 11 percent, what is the value of the bond? What is the
value if the interest is paid annually? a. If the interest is
paid semiannually, the value of the bond is $___?

1. Calculate the value of the bond shown in the following
table, assuming it pays interest annually.
Par value - $100
Coupon interest rate - 15%
Years to maturity - 11
Required return - 12%
The value of the bond is $?? nothing. (Round to the nearest
cent.)

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