Question

Nesmith Corporation's outstanding bonds have a $1,000 par value, an
9% semiannual coupon, 19 years to maturity, and an 11% YTM. What is
the bond's price? Round your answer to the nearest cent.

Answer #1

Price of a bond is the PV of the expected cash flows from | ||

the bond if, it is held till maturity. | ||

The expected cash flows are the (1) face value of the bond of $1,000 which, is | ||

receivable at the end of the term of the bond [EOY 19] | ||

and the semi-annual interest payments of $45, which constitute an annuity. | ||

The discount rate to be used is the market rate of interest (YTM) of 11.00%, | ||

the semi-annual interest rate being 5.5%. | ||

Current price of the bond =
1000/1.055^38+45*(1.055^38-1)/(0.055*1.055^38) = |
$
841.95 |

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 9% semiannual coupon, 15 years to maturity, and an 8% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 9% semiannual coupon, 14 years to maturity, and an 9.5% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 9% semiannual coupon, 18 years to maturity, and a 12% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
an 12% semiannual coupon, 11 years to maturity, and an 11% YTM.
What is the bond's price? Round your answer to the nearest
cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 12% semiannual coupon, 14 years to maturity, and a 7.5% YTM. What
is the bond's price? Round your answer to the nearest cent.

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 6% semiannual coupon, 15 years to maturity, and a 10% YTM. What
is the bond's price? Round your answer to the nearest cent.
$

Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 10% semiannual coupon, 14 years to maturity, and an 8% YTM. What
is the bond's price? Round your answer to the nearest cent.

BOND VALUATION
Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 11% semiannual coupon, 15 years to maturity, and an 9.5% YTM.
What is the bond's price? Round your answer to the nearest
cent.

Bond valuation Nesmith Corporation's outstanding bonds have a
$1,000 par value, a 6% semiannual coupon, 16 years to maturity, and
an 10.5% YTM. What is the bond's price? Round your answer to the
nearest cent.

Bond valuation
Nesmith Corporation's outstanding bonds have a $1,000 par value,
a 7% semiannual coupon, 20 years to maturity, and an 8.5% YTM. What
is the bond's price? Round your answer to the nearest cent.
$

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