HomeworkLib
Question

Find the value of a $1,000, 8% coupon bond with a maturity of 15 years. (Market...

  1. Find the value of a $1,000, 8% coupon bond with a maturity of 15 years. (Market int. rate = 10%.)

2. Find the price of a 8% coupon bond (semi-annual payments) with a par value of $1,000 and a 15-year maturity if the market rate on similar bonds is 10%.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Calculating Bond Price,

using TVM Calculation

PV = [FV = 1,000, PMT = 40, N = 30, I = 0.10/2]

PV = $846.28

0 0
Add a comment
Know the answer?
Add Answer to:
Find the value of a $1,000, 8% coupon bond with a maturity of 15 years. (Market...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A $1,000 par-value, fixed coupon bond has 17 years remaining until maturity. The bond has an...

    A $1,000 par-value, fixed coupon bond has 17 years remaining until maturity. The bond has an annual coupon rate of 8 percent. If the market annual rate for this bond is 7.25 percent, what is the price of the bond? A 20-year bond pays $110 annually on a face value of $1,000. If similar bonds are currently yielding 8%, what is the bond price?

  • What is the yield to maturity of a bond? Par Value $1,000 Coupon Rate 6.00% Term...

    What is the yield to maturity of a bond? Par Value $1,000 Coupon Rate 6.00% Term 10 years Payments per year 2 semi-annual Market Value $897.00 Payment YTM

  • A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield....

    A.Zero Coupon Bonds A 7 year maturity zero coupon corporate bond has an 8% promised yield. The bond's price should equal B.The Fishing Pier has 6.40 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,027. What is the yield to maturity? C.Bond Yields Find the promised yield to maturity for a 7% coupon, $1,000 par 20 year bond selling at $1115.00. The bond makes semiannual coupon...

  • A 15-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon...

    A 15-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.) Bond Prices Bond Equivalent Annual Yield to Maturity Effective Annual Yield to Maturity a. b. c. $ $ $ 950 1,000 1,050

  • Intro A corporate bond has 19 years to maturity, a face value of $1,000, a coupon...

    Intro A corporate bond has 19 years to maturity, a face value of $1,000, a coupon rate of 5.5% and pays interest twice a year. The annual market interest rate for similar bonds is 3.3%. - Attempt 1/10 for 9.5 pts. Part 1 What is the price of the bond (in $)? No decimals Submit Part 2 Attempt 1/10 for 9.5 pts. 2 years later, the market interest rate for similar bonds has gone up to 4.3%. What is the...

  • Canal Inc. has an 1,000 par value bond with 15 years to maturity and a coupon...

    Canal Inc. has an 1,000 par value bond with 15 years to maturity and a coupon rate of 14%, paid semiannually. The market rate on similar debt has now risen to 16%. What is the current price of this bond?

  • 1). Merton enterprises has bonds on the market making annual payments, with 13 years to maturity,...

    1). Merton enterprises has bonds on the market making annual payments, with 13 years to maturity, $1,000 par value, and selling for $825. At this price, the bonds yield 7 percent. what must the coupon rate be on Merton's bonds? 2). Bonds of Zello Corporation with a par value of $1,000 sell for $1,080, mature in 18 years, and have a 7% annual coupon rate paid annually, what is the yield to maturity? what is the current yield? what is...

  • Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually.

     2. Suppose a company issues a bond with a par value of $1,000, 23 years to maturity, and a coupon rate of 5.8% paid annually. If the yield to maturity is 4.7%, what is the current price of the bond? 3. Seekers Inc. issued 15-year bonds a year ago at a coupon rate of 4.1%. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 4.5%, what is the current bond price?

  • stealers software has 10 percent coupon bond on the market with 10 years to maturity, and...

    stealers software has 10 percent coupon bond on the market with 10 years to maturity, and the par value of $1,000. the bnods make annual coupon payments and currency sell for $1040. Bilbo technology bonds have smimilar risk as stealers bonds, at what price bilbo technology bonds should be selling assuming that the bilbo bonds have 2 percent coupon rate paid annually and have 1000 par value and 10 years maturity.

  • please show how to compute with a financial calculator. thank you! Bond Valuation Exercises: OM Question...

    please show how to compute with a financial calculator. thank you! Bond Valuation Exercises: OM Question 1. GTF Corporation has 5 percent coupon bonds on the market with a par of $1,000 and 10 years left to maturity. The bonds make annual interest payments. If the market interest rate on these bonds is 7 percent, what is the current bond price? Question 2. MTV Corporation has 7 percent coupon bonds on the market with a par of $1,000 and 8...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT