Question

Par Value 1,000 Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate   7.00% Coupons per year...

Par Value 1,000
Settlement date 1/1/2000
Maturity date 1/1/2015
Annual coupon rate   7.00%
Coupons per year 2
Yield to maturity 7%
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
                  K = Nx2
Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k]     +   Par value/(1 + YTM/2)^Nx2
                   k=1
                  K =15x2
Bond Price =∑ [(7*1000/200)/(1 + 7/200)^k]     +   1000/(1 + 7/200)^15x2
                   k=1
Bond Price = 1000
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
Par Value 1,000 Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate   8.00% Coupons per year...
Par Value 1,000 Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate   8.00% Coupons per year 2 Yield to maturity 9%
Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate 7.00% Coupons per year                  2 a)...
Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate 7.00% Coupons per year                  2 a) Yield to maturity 8% b) Yield to maturity 10% c) Yield to maturity 12%    calculate the price of the bond
Ailerone, Inc. has issued a bond with the following characteristics: Par Value 1,000 Settlement date 1/1/2000...
Ailerone, Inc. has issued a bond with the following characteristics: Par Value 1,000 Settlement date 1/1/2000 Maturity date 1/1/2015 Annual coupon rate   11.00% Coupons per year 2 Yield to maturity 12% What is the price of the bond? $931.18 $657.50 $30.00 $734.56
Consider a 10-year, $1,000 par value bond that pays annual coupons. Coupon rate of the bond...
Consider a 10-year, $1,000 par value bond that pays annual coupons. Coupon rate of the bond is 9%. If the current price of this bond is $900, we can infer that the yield-to-maturity (YTM) of this bond is _________. A. less than 9% B. equal to 9% C. Not enough information D. greater than 9%
Consider the following bond issued by Walmart: coupon rate: 4.828% face value: $1,000 maturity date: July...
Consider the following bond issued by Walmart: coupon rate: 4.828% face value: $1,000 maturity date: July 15, 2040 semi-annual coupons settlement date: March 8, 2020 yield (YTM): 4.164% most recent coupon payment date: January 15, 2020 What is the value of the bond? (Equivalently, we are calculating the “dirty price”.) Express your answer as the dollar and cents price for a bond with $1,000 face value.
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) Bond equivalent yield to maturity % Effective annual yield to maturity %
type issue date price (per $100 par value) Coupon Rate Maturity Date Yield to maturity Current...
type issue date price (per $100 par value) Coupon Rate Maturity Date Yield to maturity Current Yield Rating Bond aug 2005 79.56 4.50% 8-15-2015 - 5.66% AAA Treasury notes and bonds. Use the information in the following​ table: Assume a $100,000 par value. What is the yield to maturity of the August 2005 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield. How do you explain this​ relationship? What is the yield to maturity of...
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....
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
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10 2. (10 points) Compute the following yields: a) the yield to maturity for Bond 1, above, if the current bond price is $875. b) the yield to call for Bond 1 if its current price is $1050 and it is callable in 4 years at a value of par plus one year’s coupon interest.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT