Question

You are eyeing an investment in a corporate bond which has a YTM of 5.57%, and...

You are eyeing an investment in a corporate bond which has a YTM of 5.57%, and a stated rate of interest of 3.38% with a maturity of 5 years. What is the price of this bond?

What are the:

N=

I%=

PV=

PMT=

FV=

P/Y=1

C/Y=1

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
You are eyeing an investment in a corporate bond which has a YTM of 14.95%, and...
You are eyeing an investment in a corporate bond which has a YTM of 14.95%, and a stated rate of interest of 13.04% paid semi-annually, with a maturity of 20 years, and a PAR value of $1,000. What is the price of this bond?
Find the price of a bond. The time is today. The $1,000 par value corporate bond...
Find the price of a bond. The time is today. The $1,000 par value corporate bond you are interested in has a 5% coupon rate, paid semi-annually. The maturity of the bond is 20 years. The rating agencies have determined that this company should have a B+ rating, making its yield be 6%. Show a time line of these cash flows.   What is the price you will have to pay for the bond? N                I                 PV              PMT           FV Same bond...
Calculate the new price of bond at the new YTM of 2%, 4%, 6%, 8%, and...
Calculate the new price of bond at the new YTM of 2%, 4%, 6%, 8%, and 10% for both 5-years bond and 30-years bond. Plot the graph of the relationship between the price and YTM for each bond on the same graph. What did you find regarding the relationship between price and YTM for shorter and longer maturity bond? Which bond has a higher sensitive to the change in the price when the yield change? Bond Rating Coupon Rate (%)...
There is a corporate bond in the market that is selling for $1,136.96 each, stated rate...
There is a corporate bond in the market that is selling for $1,136.96 each, stated rate of interest of 8.23% with a maturity of 3 years. What is the yield-to-maturity (YTM) of this bond? How can i find the PMT that goes into the financial calculator?
A 14-year semiannual coupon bond with a YTM of 8.2% sells for par. If you buy...
A 14-year semiannual coupon bond with a YTM of 8.2% sells for par. If you buy the bond today and then sell it next year at a YTM of 7.7%, what is your capital gain on this investment? Enter your answer as a percentage rounded to two decimal places (e.g., 5.64%). (Please show step by step using N, I/Y, PV, PMT and FV on a calculator as well if needed.)
1. Julia purchased an investment grade gold coin today for $375,000. She expects it to increase...
1. Julia purchased an investment grade gold coin today for $375,000. She expects it to increase in value at a rate of 4.5% compounded annually for the next 6 years. How much will the coin be worth at the end of the sixth year? N I/Y PV PMT FV                                                                                                    2. Moon has been investing $2,500 quarterly for the past 10 years in an equity mutual fund. How much is the fund worth now assuming she has earned 8.5% compounded...
How many years does it take for $1,000 grow to be $1,500, if interest rate is...
How many years does it take for $1,000 grow to be $1,500, if interest rate is 12% compounded monthly? BGN or END MODE ( choose one ) P/Y = N= ? I/Y= PV= PMT= FV= CPT , N = Can you explain how you computed it for compunded monthly. 2. How many years does it take for $1,000 to grow to be $1,500, if interest rate is 12%? BGN or END MODE ( choose one ) P/Y = N= ?...
Consider a 6.6% semiannual coupon bond with 10 years to maturity and a current price of...
Consider a 6.6% semiannual coupon bond with 10 years to maturity and a current price of $850. What will the price be in one year if the yield to maturity (YTM) remains constant? Round your answer to two decimal places. (Please show step by step using N, I/Y, PV, PMT and FV on a calculator as well if needed.)
BOND VALUATION Callaghan’s Motors’ bonds have 15 years remaining to maturity. Interest is paid semi-annually, they...
BOND VALUATION Callaghan’s Motors’ bonds have 15 years remaining to maturity. Interest is paid semi-annually, they have a $1,000 par value, the coupon interest rate is 9%, and the yield to maturity is 8%. What is the bond’s current market price? BOND VALUATION Nungesser Corporation’s outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years to maturity, and an 8.5% YTM. What is the bond’s price? BOND VALUATION and YIELD TO MATURITY Suppose a 10-year, $1000 bond...
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of...
Create an amortization table for a corporate bond which has a yield to maturity (YTM) of 4% that will last 15 years and has a coupon rate of 4%. If you could use excel and show the formulas that would be great!
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT