Question

A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current...

A semi-annual coupon bond has a 6 percent coupon rate, a $1,000 face value, a current value of $1,036.09, and 3 years until the first call date. What is the call price if the yield to call is 6.5 percent?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Let Call Value be C

0.9025 C = 957.108775

C = 957.108775/ 0.9025

= $ 1060.51

Call Value is $ 1060.51

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

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 semi-annual bond has a face value of $1,000, a coupon rate of 7.2%, a yield...
A semi-annual bond has a face value of $1,000, a coupon rate of 7.2%, a yield to maturity of 5.5% and has 5 years remaining to maturity. What is the price of the bond?
17. Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000,...
17. Assume a semi-annual coupon bond matures in 3 years, has a face value of $1,000, a current market price of $989, and a 5 percent coupon. Which one of the following statements is correct concerning this bond? A. The current coupon rate is greater than 5 percent. B. The bond is a money market instrument. C. The bond will pay less annual interest now than when it was originally issued. D. The current yield exceeds the coupon rate. E....
2. Today, a bond has a coupon rate of 8.4 percent, par value of 1,000 dollars,...
2. Today, a bond has a coupon rate of 8.4 percent, par value of 1,000 dollars, YTM of 4.82 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond’s price was 1,041.94 dollars and the bond had 17 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 3....
1. Today, a bond has a coupon rate of 8.18 percent, par value of 1,000 dollars,...
1. Today, a bond has a coupon rate of 8.18 percent, par value of 1,000 dollars, YTM of 6 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond’s price was 1,022.04 dollars and the bond had 19 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 2....
An 8%, semi-annual coupon bond has a $1,000 face value and matures in 8 years. What...
An 8%, semi-annual coupon bond has a $1,000 face value and matures in 8 years. What is the current yield on this bond if the yield to maturity is 7.8%?
A corporate bond has a $1,000 face value and a 5 percent coupon rate (annual payments)...
A corporate bond has a $1,000 face value and a 5 percent coupon rate (annual payments) maturing in 3 years. a. If the yield to maturity is 7%, what is the bond price? b. An investor believes an appropriate rate to discount the future cash flow of the bond should be 6%, should the investor buy or sell the bond? Discuss the reason(s).
a 10-year bond, $1,000 face value bond with a 8% coupon rate and semi-annual coupons has...
a 10-year bond, $1,000 face value bond with a 8% coupon rate and semi-annual coupons has a yield to maturity of 12%. the bond should be trading at the price of? round to nearest cent
A bond has an 8.2 percent coupon (and makes semi-annual coupon payments), a $1,000 par value,...
A bond has an 8.2 percent coupon (and makes semi-annual coupon payments), a $1,000 par value, matures in 12.5 years, and is priced to provide a yield to maturity of 7.00 percent. What is the current yield?
The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually,...
The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today?
What is the value of a bond that pays a 6% semi-annual coupon, has a face...
What is the value of a bond that pays a 6% semi-annual coupon, has a face value of $1,000, matures in 20 years, and has a yield to maturity of 8%? Question 45 options: $803.64 $808.43 $805.12 $802.07
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT