Question

Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 13 percent annual interest....

Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 13 percent annual interest. The current yield to maturity on such bonds in the market is 14 percent. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

bond price for 25 years:

bond price for 16 years:

bond price for 1 year:

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
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest....
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) a. 25 years b. 19 years c. 5 year
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 14 percent annual interest....
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 14 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)...
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 12 percent annual interest....
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 10 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)...
Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest....
Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 10 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for the maturity dates: (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)...
Applied Software has a $1,000 par value bond outstanding that pays 10 percent interest with annual...
Applied Software has a $1,000 par value bond outstanding that pays 10 percent interest with annual payments. The current yield to maturity on such bonds in the market is 8 percent. Use Appendix B and Appendix D. Appendix just has the calculateed numers. I can't put it here, calculate it yourself. Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal...
BP has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current...
BP has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 10 percent. Compute the price of the bonds for the following maturity dates. Show all your work for full credit. a. 30 years b. 10 years c. 5 years
Exodus Limousine Company has $1,000 par value bonds outstanding at 17 percent interest. The bonds will...
Exodus Limousine Company has $1,000 par value bonds outstanding at 17 percent interest. The bonds will mature in 50 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the percent yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)    Exodus Limousine Company has $1,000...
If a bond has annual interest payments of $50 and a par value of $1,000, with...
If a bond has annual interest payments of $50 and a par value of $1,000, with six years to maturity, what is its current market value if bonds like it are currently offering a 7 percent yield?
Octopus Transit has a $1,000 par value bond outstanding with 20 years to maturity. The bond...
Octopus Transit has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest payment of $104, payable semiannually, and is currently selling for $1,110. Octopus is in a 35 percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be. The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the...
Miller Corporation has a premium bond making semiannual payments. The bond pays an 7 percent coupon,...
Miller Corporation has a premium bond making semiannual payments. The bond pays an 7 percent coupon, has a YTM of 5 percent, and has 16 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a 5 percent coupon, has a YTM of 7 percent, and also has 16 years to maturity. (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) If interest rates...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT