Question

A company issues a​ ten-year bond at par with a coupon rate of 6.1​% paid​ semi-annually....

A company issues a​ ten-year bond at par with a coupon rate of 6.1​% paid​ semi-annually. The YTM at the beginning of the third year of the bond​ (8 years left to​ maturity) is 8.9​%. What is the new price of the​ bond?

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
A company issues a​ ten-year bond at par with a coupon rate of 6.1% paid​ semi-annually....
A company issues a​ ten-year bond at par with a coupon rate of 6.1% paid​ semi-annually. The YTM at the beginning of the third year of the bond​ (8 years left to​ maturity) is 99​%. What is the new price of the​ bond? A. $1,005 B. $837 C. $1,172 D. ​$1,000
There is a time limit. A company issued a ten-year $1,000 face value bond at par...
There is a time limit. A company issued a ten-year $1,000 face value bond at par with a coupon rate of 6.7% paid semiannually. The YTM at the beginning of the third year of the bond (eight years left to maturity) is 8.1%. What was the percentage change in the price of the bond over the past two years? ________% (round to 1 decimal, include “-“ if the value is negative)
Consider a corporate bond with a 4.3% coupon rate, paid semi-annually, $1000 par value and a...
Consider a corporate bond with a 4.3% coupon rate, paid semi-annually, $1000 par value and a current yield to maturity (YTM) of 3.7%. It matures in exactly 8 years. What is the current market price of this bond? [Your final answer should be ROUNDED TO THE NEAREST DOLLAR, expressed in dollars only (eg 234) with no cents, and no commas!] Market Price =
Consider a bond with 10,000 USD par value, 8% coupon rate paid semi annually and 10...
Consider a bond with 10,000 USD par value, 8% coupon rate paid semi annually and 10 years to maturity. Assuming a 10% find the pv for the bond given its zero coupon bond
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually....
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually. What is the value of the bond if your required rate of return is 5%? 2. A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid semi-annually. What is the value of the bond if your required rate of return is 5%? 3.  A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid semi-annually. What...
A 20-year bond has 10% coupon rate (paid semi-annually; next coupon due 6 months from today)...
A 20-year bond has 10% coupon rate (paid semi-annually; next coupon due 6 months from today) and $1,000 face value. Its yield to maturity (nominal, compounded semi-annually) is 8%. How much is a rational investor willing to pay for the bond? If the yield to maturity decreases from 8% to 6%, what will happen to the bond price?
A $5,000 bond had a coupon rate of 5.50% with interest paid semi-annually. Ali purchased this...
A $5,000 bond had a coupon rate of 5.50% with interest paid semi-annually. Ali purchased this bond when there were 6 years left to maturity and when the market interest rate was 5.75% compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was 5.25% compounded semi-annually. a. What was the purchase price of the bond? Round to the nearest cent. b. What was the selling price of the bond? Round to the...
BOND VALUATION Callaghan’s Motors’ bonds have 15 years remaining to maturity. Interest is paid semi-annually, they...
BOND VALUATION Callaghan’s Motors’ bonds have 15 years remaining to maturity. Interest is paid semi-annually, they have a $1,000 par value, the coupon interest rate is 9%, and the yield to maturity is 8%. What is the bond’s current market price? BOND VALUATION Nungesser Corporation’s outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years to maturity, and an 8.5% YTM. What is the bond’s price? BOND VALUATION and YIELD TO MATURITY Suppose a 10-year, $1000 bond...
Suppose there is a bond with a 6% coupon (interest paid semi-annually) and 15 years to...
Suppose there is a bond with a 6% coupon (interest paid semi-annually) and 15 years to maturity. If the yield to maturity on this bond is currently 6%, what is the price of this bond? What if the same bond (with a 6 % coupon, interest paid semi-annually, and 15 years to maturity) were selling for $1,100 today. What is the yield to maturity?
a treasury bond has an annual coupon rate of 5% that is paid semi-annually. the Face...
a treasury bond has an annual coupon rate of 5% that is paid semi-annually. the Face Value of the bond is $1000 and it has 10 years to maturity with a yield to maturity of 6% (expressed as an apr with semi annual compounding) commpute the price of the bond.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT