Question

A revenue bond matures in 15 year, pays a 5.5 percent coupon rate every 6 months,...

A revenue bond matures in 15 year, pays a 5.5 percent coupon rate every 6 months, and has a face value of $5,000. The market interest rate for similar risk and maturity municipal bonds is 4 percent. What is the current price of the bond? What would the price be if the market was 6 percent?

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
HW9 #6) Bond A pays annual coupons, pays its next coupon in 1 year, matures in...
HW9 #6) Bond A pays annual coupons, pays its next coupon in 1 year, matures in 12 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 13 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 8.46 percent and is priced at 836.24 dollars. Bond B has a coupon rate of 7.72...
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 17 years,...
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 17 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 15 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 9.28 percent and is priced at 998.32 dollars. Bond B has a coupon rate of 9.62 percent. What...
Please answer those three questions clearly At 5.5 percent bond matures in seven years, pays interest...
Please answer those three questions clearly At 5.5 percent bond matures in seven years, pays interest semiannually and has a yield to maturity of 6.5 percent. What is the current market price of the bond? $945.08 $947.21 $944.47 $962.40 Problem (3 Points) Blue Water bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual interest payments, and mature in 11.5 years. What is the current price of these bonds if the yield to maturity (YTM) is...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of...
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent?
You are holding a bond with an annual coupon rate of 6% that matures in 15...
You are holding a bond with an annual coupon rate of 6% that matures in 15 years. Interest is paid semiannually. Bonds recently issued of similar risk have a coupon rate of 5%. What should your bond sell for in the secondary market?
A 10-year, 7 percent coupon bond pays interest semiannually. The bond has a face value of...
A 10-year, 7 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 6 percent from the current rate of 5.5 percent?
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years...
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years and has a face value of one thousand. Bond B pays semi annual coupons pays its next coupon in six months, matures in three years and has a face value of one thousand. The two bonds have the same yield to maturity. Bond A has a coupon rate of 7.70 percent and is priced at $736.19. Bond B has a coupon rate of 6.40...
A bond with a $1,000 face value and a 15 percent annual coupon rate matures in...
A bond with a $1,000 face value and a 15 percent annual coupon rate matures in 30 years. a. Determine the value of the bond to a friend of yours with a required rate of return of 11%. b. A zero coupon bond with similar risk is selling for $550. The bond has a face value of $1,000 and matures in 30 years. Your friend asks you which bond she should invest in, the zero coupon bond or the bond...
A bond has a coupon rate of 4.3% and pays coupons annually. The bond matures in...
A bond has a coupon rate of 4.3% and pays coupons annually. The bond matures in 29 years and the yield to maturity on similar bonds is 3.7%. What is the price of the bond?
A bond has a coupon rate of 9.8% and pays coupons annually. The bond matures in...
A bond has a coupon rate of 9.8% and pays coupons annually. The bond matures in 3 years and the yield to maturity on similar bonds is 8.8%. What is the price of the bond?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT