Question

A bond with a face value of $1300 pays a half-yearly interest rate if 6% p/a...

A bond with a face value of $1300 pays a half-yearly interest rate if 6% p/a compounded half-yearly and has 14 years till maturity.

The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 4% pa compounded half yearly.

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 bond with a face value of $1,800 pays half-yearly interest at a rate of 6%...
A bond with a face value of $1,800 pays half-yearly interest at a rate of 6% pa compounded half-yearly and has 7 years until maturity. The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 4% pa compounded half-yearly. Give your answer in dollars and cents to the nearest cent. P = $
(a)       Consider a 14-year, 9.5% corporate bond with face value $10,000. Assume that the bond pays...
(a)       Consider a 14-year, 9.5% corporate bond with face value $10,000. Assume that the bond pays semi-annual coupons. Compute the fair value of the bond today if the nominal yield-to-maturity is 11% compounded semi-annually. (b)       Consider a 11-year, corporate bond with face value $1,000 that pays semi-annual coupon. With the nominal yield-to-maturity equal to 10%, the bond is selling at $802.5550. Find the coupon rate for this bond. Assume that the market is in equilibrium so that the fair value...
Henry is planning to purchase a Treasury bond with a coupon rate of 1.81% and face...
Henry is planning to purchase a Treasury bond with a coupon rate of 1.81% and face value of $100. The maturity date of the bond is 15 May 2033. (a) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.79% p.a. compounded half-yearly. (b) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent?
On 4 February 2010 a company issued a bond with a face value of $200,000 that...
On 4 February 2010 a company issued a bond with a face value of $200,000 that matures exactly 20 years later. The coupon rate is 6% p.a. compounded half-yearly. What is the bond's value on 4 August 2018 assuming the market yield is 3% p.a. compounded half-yearly.
A corporate bond pays interest annually and has 3 years to maturity, a face value of...
A corporate bond pays interest annually and has 3 years to maturity, a face value of $1,000 and a coupon rate of 3.6%. The bond's current price is $1,002.8. It is callable at a call price of $1,050 in one year.What is the bond's yield to maturity? What is the bond's yield to call?
A bond with a $1,600 face value and 13 years remaining until maturity pays a coupon...
A bond with a $1,600 face value and 13 years remaining until maturity pays a coupon rate of 8.25% compounded semi-annually. Calculate the yield to maturity if the bond is priced at $1,280.
Henry is planning to purchase a Treasury bond with a coupon rate of 1.73% and face...
Henry is planning to purchase a Treasury bond with a coupon rate of 1.73% and face value of $100. The maturity date of the bond is 15 May 2033. (b) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.64% p.a. compounded half-yearly. Henry needs to pay 26.3% on coupon payment as tax payment and tax are paid immediately. Select one: a. 95.7626 b. 95.9054...
A corporate bond pays interest annually and has 4 years to maturity, a face value of...
A corporate bond pays interest annually and has 4 years to maturity, a face value of $1,000 and a coupon rate of 3.7%. The bond's current price is $1,007.35. It is callable at a call price of $1,050 in one year. Attempt 1/3 for 10 pts. Part 1 What is the bond's yield to maturity? 3.5% Correct ✓ Attempt 3/3 for 6 pts. Part 2 What is the bond's yield to call? 3+ decimals part two pleae fast
A 10-year, 7 percent coupon bond pays interest semiannually. The bond has a face value of...
A 10-year, 7 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 6 percent from the current rate of 5.5 percent?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT