Question

What is the price of a bond (to the nearest cent) with 17 years to maturity,...

What is the price of a bond (to the nearest cent) with 17 years to maturity, 7.4% coupon rate, semiannual payments, par of $1000, and the yield to maturity of 3.21%?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Par value $                   1,000.00
Coupon rate 7.40%
Coupon payment per period $                         37.00
Yield to maturity 3.21%
Years to maturity 17
Price of the Bond $                   1,545.68

Excel formulas:

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
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity if the required return on these bonds is 3%? Consider a bond with par value of $1000, 25 years left to maturity, and a coupon rate of 6.4% paid annually. If the yield to maturity on these bonds is 7.5%, what is the current bond price? One year ago, your firm issued 14-year bonds with a coupon rate of 6.9%. The bonds make semiannual...
Find the price for the bond in the following​ table:  ​(Round to the nearest​ cent.) Par...
Find the price for the bond in the following​ table:  ​(Round to the nearest​ cent.) Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000 5% 10 5% ? $5,000 10% 15 7% ? $5,000 7% 15 9% ? $5,000 6% 30 8% ? Part 2. .Find the price for the bond in the following​ table: Par Value Coupon Rate Years to Maturity Yield to Maturity Price $5,000 8% 10 11% ? $1,000 6% 20 5% ? $1,000...
What is the price of a 6% coupon bond if the bond is priced to yield...
What is the price of a 6% coupon bond if the bond is priced to yield 5% YTM, and has 9 years to maturity? Assume $1000 par value and semiannual coupon payments. What will be the rate of return on the bond if the yield to maturity at the end of the year is (a) 3%? (b) 5%? (c) 7%?
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value...
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value of $1000, and a coupon rate of 11% (annual payments). The yield to maturity on this bond when it was issued was 12. a. What was the price of this bond when it was issued? (Round to the nearest cent) b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes it first coupon payment? (Round...
Calculate the price of a 6.5 percent coupon bond with 17 years left to maturity and...
Calculate the price of a 6.5 percent coupon bond with 17 years left to maturity and a market interest rate of 10.5 percent. (Assume interest rates are semiannual and par value is $1,000.) Is this a discount or premium bond?
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual...
keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments and a $1000 par value. the bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,150. what is the bonds nominal yield to call?
QUESTION 27 What is the time to maturity (in years) on a bond? The bond currently...
QUESTION 27 What is the time to maturity (in years) on a bond? The bond currently sells for $1,189.08, pays semiannual coupon payments with a coupon rate of 10%, has a yield to maturity of 8%, has a par value of $1,000. 9 36 18 20 40
What is the value (to the nearest cent) of a 7 year 8.6% coupon bond with...
What is the value (to the nearest cent) of a 7 year 8.6% coupon bond with a face value of $1,000. The yield-to-maturity on the bond is 11.1% and the bond makes semi-annual coupon payments.
McConnell Corporation has bonds on the market with 17 years to maturity, a YTM of 7.4...
McConnell Corporation has bonds on the market with 17 years to maturity, a YTM of 7.4 percent, a par value of $1,000, and a current price of $1,276.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Use financial calculator if possible to solve)
Tong corporation's bonds have 5 years to maturity with $1000 par value, assume that this bond...
Tong corporation's bonds have 5 years to maturity with $1000 par value, assume that this bond pays coupon interest of 8% with semiannual compounding. YTM is 9%. What is bond's current price? Answer to the nearest cent
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT