Question

You purchased a $1,000 bond with a 4.6% semi-annual coupon and 15 years to maturity six...

You purchased a $1,000 bond with a 4.6% semi-annual coupon and 15 years to maturity six years ago at a price of $855. If the yield has remained constant, what should be the price of the bond today?

  • A. $959.46

  • B. $592.55

  • C. $900.24

  • D. $898.05

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Six years ago you purchased a $1,000 par bond with 13 years to maturity and a...
Six years ago you purchased a $1,000 par bond with 13 years to maturity and a 6.5% semi-annual coupon at a price of $1,200. If the yield to maturity of the bond remained constant, what should be the price today?
#17 You purchased a 14-year, $1,000 bond with a 4.6% semi-annual coupon three years ago at...
#17 You purchased a 14-year, $1,000 bond with a 4.6% semi-annual coupon three years ago at a price of $1,015. Today you sold the bond at a price of $1,111. What was the yield to maturity when you sold the bond? A. 3.84% B. 3.38% C. 4.45% D. 5.33%
Six months ago you purchased a $100,000, 2% coupon bond with 7 years to maturity. The...
Six months ago you purchased a $100,000, 2% coupon bond with 7 years to maturity. The bond makes semi-annual coupon payments, and, at the time of purchase, had a yield-to-maturity of 2.40%, annual rate, compounded semiannually. a) Calculate price (per hundred dollars of face value) you paid for the bond. b) Today, after noticing that the yield has dropped to 2.10%, you sell the bond. What is the current price (per hundred dollars of face value)? c) Calculate your gains...
A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at...
A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at a yield of 6%. What would be it’s price?
You find a $1,000 par bond with a 3.5% semi-annual coupon and 13 years to maturity....
You find a $1,000 par bond with a 3.5% semi-annual coupon and 13 years to maturity. If the bond trades at a yield of 6.23%, what should be its current price?
You purchased a 20-year bond 15 years ago at a yield to maturity of 7.56%. The...
You purchased a 20-year bond 15 years ago at a yield to maturity of 7.56%. The bond has a face value of $1,000 and a coupon rate of 9.00%, paid semi-annually. If the investors’ required rate of return on this bond has stayed the same for 15 years, what is the price of the bond today? $1,000.00 $1,058.17 $1,146.13 $1,059.94
Six years ago, Carl purchased an 8% coupon bond that had 10 years to maturity for...
Six years ago, Carl purchased an 8% coupon bond that had 10 years to maturity for $1,150. Since the bond purchase, the required return on the bond has remained constant. If Carl sells the bond now, the price he receives for the bond will be: $1,150. Between $1,000 and $1,150. higher than $1,150. less than $1,000.
Six years ago you purchased a 15-year $1,000 bond with a coupon rate of 4 percent....
Six years ago you purchased a 15-year $1,000 bond with a coupon rate of 4 percent. You now wish to sell the bond and read that yields are 9 percent. What price should you receive for the bond? A$900.16 B$700.24 C$661.42 D$1,029.69
Q3) What is the price of a $1,000 par value, semi-annual coupon bond with 15 years...
Q3) What is the price of a $1,000 par value, semi-annual coupon bond with 15 years to maturity, a coupon rate of 03.60% and a yield-to-maturity of 08.70%? (1 point)
You purchased a 15-year bond 12 years ago at a yield to maturity of 9.16%. The...
You purchased a 15-year bond 12 years ago at a yield to maturity of 9.16%. The bond has a face value of $1,000 and a coupon rate of 9.00%. If the investors’ required rate of return on this bond has stayed the same for 12 years, what is the price of the bond today? $995.88 $973.05 $965.31 $1,020.97