Question

Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on acomparable-risk bond is 13 percent.

The value of the bond is ?

(round to the nearest cent)

Answer #1

Maturity of bond = 13 years

Par value = $1000

Annual coupon rate = 11%

Coupon frequency = annual

Coupon = coupon rate*par value = 11% *1000 = $110

yield to maturity = 13%

Bond price can be calculated using PV function in spreadsheet

PV(rate, number of periods, payment amount, future value, when-due)

Where, rate = yield to maturity = 13%

number of periods = 13 years

payment amount = coupon = $110

future value = par value = $1000

when-due = when is the coupon paid each year = end = 0

Bond price = PV(13%, 13, 110, 1000,
0) = **$877.56**

Calculate the value of a bond that matures in 13 years and has a
$1,000 par value. The annual coupon interest rate is 13 percent and
the market's required yield to maturity on a comparable-risk bond
is 11 percent.

Calculate the value of a bond that matures in 15 years and has
a $1,000 par value. The annual coupon interest rate is 11 percent
and the market's required yield to maturity on a comparable-risk
bond is 8 percent.
The value of the bond is $_____. (Round to the nearest
cent.)

Calculate the value of a bond that matures in 19 years and has a
$1,000 par value. The Annual Coupon interest rate is 9 percent and
the market's required yield to maturity on a comparable-risk bond
is 16 percent. The Value of the bond is $(___). (Round to the
nearest cent.)

?(Bond valuation)?Calculate the value of a bond that matures in
17 years and has a $1,000 par value. The annual coupon interest
rate is 12 percent and the? market's required yield to maturity on
a? comparable-risk bond is 9 percent. The value of the bond is
?$____. ? (Round to the nearest? cent.)

Calculate the value of a bond that matures in 11 years and has a
$1,000 par value. The annual coupon interest rate is 9 percent and
the market's required yield to maturity on a comparable-risk bond
is 14 percent. The value of the bond is $_

A bond that matures in 11 years has a $1,000 par value. The
annual coupon interest rate is 9 percent and the market's required
yield to maturity on a comparable-risk bond is 13 percent. What
would be the value of this bond if it paid interest annually? What
would be the value of this bond if it paid interest
semiannually?
a. The value of this bond if it paid interest annually would
be?
(Round to the nearest cent.)

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the market's required yield to maturity on a comparable-risk bond
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in
1212
years and has a
$ 1 comma 000$1,000
par value. The annual coupon interest rate is
1313
percent and the market's required yield to maturity on a
comparable-risk bond is
1414
percent.
The value of the bond is
$nothing.
(Round to the nearest cent.)

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13 percent. What would be the value of this bond if it paid
interest annually? What would be the value of this bond if it paid
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value. The annual coupon interest rate is 16 percent and the
market's required yield to maturity on a comparable-risk bond is
13 percent. The value of the bond is $ nothing. (Round to the
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