Question

Renfro Rentals has issued bonds that have a 7% coupon rate, payable semiannually. The bonds mature in 18 years, have a face value of $1,000, and a yield to maturity of 9%. What is the price of the bonds? Round your answer to the nearest cent.

Answer #1

**Bond Valuation**: The value of bond is the
present value of the expected cashflows from the bond,discounted at
Yield to Maturity(YTM).

Year |
Cash flow |
PVAF/[email protected]% |
Present Value
(Cashflow*PVAF/PVF) |

1-36 | 35 | 17.6660* | 618.31 |

36 | 1000 | 0.205** | 205.00 |

**Current Market Price of Bonds
= $823.31** (618.31+205)

**Note :** Since the bond makes semiannual interest
payments, total no. of period is 36 (18*2), cashflow per period is
35(1000*7%/2) and cashflows are discounted at 4.5% (9/2).

*PVAF = (1-(1.045)^^{-36})/.045 = 17.666

**PVF = 1 / (1.045)^{36} = 0.205

Renfro Rentals has issued bonds that have a 6% coupon rate,
payable semiannually. The bonds mature in 8 years, have a face
value of $1,000, and a yield to maturity of 5.5%. What is the price
of the bonds? Round your answer to the nearest cent.

bond Valuation with Semiannual Payments Renfro Rentals has
issued bonds that have a 6% coupon rate, payable semiannually. The
bonds mature in 7 years, have a face value of $1,000, and a yield
to maturity of 9.5%.
What is the price of the bonds? Round your answer to the nearest
cent. $

Bonds issued by American Aero Inc. bear an 8% coupon, payable
semiannually. The bonds mature in 10 years and have a $1,000 face
value. Currently the bonds sell for $675. What is the yield to
maturity?

The bonds of a company bear a 13% coupon rate, payable
semiannually. The bonds mature in 11 years and have a $1,000 face
value. Currently, the bonds sell for $924.00. What is the yield to
maturity?

The bonds issued by Stainless Tubs bear a 6 percent coupon,
payable semiannually. The bonds mature in 11 years
and have a $1,000 face value. Currently, the bonds sell for $646.
What is the yield to maturity?
3.07 percent
5.92 percent
6.14 percent
11.84 percent

The bonds issued by Greenland Printing Int. has an 8 percent
coupon, payable semiannually. The bonds mature in 10 years and have
a $1,000 face value. Currently, the bonds sell for $932. What is
the yield to maturity? a)9.05 percent b) 8.69 percent c) 8.57
percent d)8.28 percent e) 7.89 percent

Just-Buss Corporation has issued a bond that has a 10% coupon
rate, payable quarterly. The bonds mature in 10 years, have a face
value of $1,000 and a yield to maturity of 12%. What is the price
of the bond?
What must be the price of a $10,000 bond with a 12% coupon rate,
semi-annual coupons, and five years to maturity if it has a yield
to maturity of 10%?

Meta Corporation has issued bonds that have a 12% coupon rate,
payable annually. The bonds mature in 5 years, have a face value of
1000$, and YTM of 9%. What is the price of the
bonds?
please make sure it's correct 100%

14. Bonds that mature in 10 years were recently issued by Smart
glass Inc. They have a par value of $1,000 and the annual coupon
rate is 5.5%. If the current yield to maturity on similar risk
bonds is 7.0%, at what price should the bonds sell?
15. Hamilton Corporation's bonds will mature in 15 years. The
bonds have a face value of $1,000 and an 8% coupon rate, paid
semiannually. The price of the bonds is $1,050.
What is...

The bonds issued by Jensen & Son bear 6% coupon, payable
semiannually. The bond matures in 12 years and has
a $1,000 face value. Currently, the bond sells at par. What is the
yield to maturity?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 7 minutes ago

asked 14 minutes ago

asked 17 minutes ago

asked 50 minutes ago

asked 50 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago