HomeworkLib
Question

A coupon bond has a face value of $1,000. with 4.83% coupon rate. It matures in...

A coupon bond has a face value of $1,000. with 4.83% coupon rate. It matures in 7 years, and has a yield to maturity of 7.33%. What is the price of the bond?

please Submit your answers with 4 decimals after the dot.

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

Homework Answers

Answer #1

The price of bond is $866.8041. This can be easily done on a Financial calculator with keystrokes written below :-

- FV = $ 1000 P. M. T = $48.3 N= 7 Ill. = 7.33). Compute P. M. T = $ 866.804 1

Please press like button

Took real efforts :)

Thanks & Regards

0 0
Add a comment
Know the answer?
Add Answer to:
A coupon bond has a face value of $1,000. with 4.83% coupon rate. It matures in...
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

  • Consider a zero-coupon bond with $1,000 face value and 29 to maturity. If the YTM is...

    Consider a zero-coupon bond with $1,000 face value and 29 to maturity. If the YTM is 4.27%, this bond will trade at a price of? please Submit your answers with 4 decimals after the dot

  • formula + answer please 1. The $1,000 face value ABC bond has a coupon rate of...

    formula + answer please 1. The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today? (5 PTS) 2. The KLM bond has $80 yearly coupon (with interest paid quarterly), a maturity value of $1,000, and matures in 20 years. If the bond is priced to yield 6%, what is the maximum price a which you...

  • A zero coupon bond has a face value of $1,000 and matures in 6 years. Investors...

    A zero coupon bond has a face value of $1,000 and matures in 6 years. Investors require​ a(n) 7.2 % annual return on these bonds. What should be the selling price of the​ bond? If the nominal rate of interest is 12.21 % and the real rate of interest is 8.76 % what is the expected rate of​ inflation? A Ford Motor Co. coupon bond has a coupon rate of 6.75​%, and pays annual coupons. The next coupon is due...

  • Intro A bond has an annual coupon rate of 4.1%, a face value of $1,000, a...

    Intro A bond has an annual coupon rate of 4.1%, a face value of $1,000, a price of $1,121.27, and matures in 10 years. - Attempt 3/10 for 9.5 pts. Part 1 What is the bond's YTM? + decimals Submit

  • Intro A bond has an annual coupon rate of 4.1%, a face value of $1,000, a...

    Intro A bond has an annual coupon rate of 4.1%, a face value of $1,000, a price of $1,121.27, and matures in 10 years. Attempt 1/10 for 9.5 pts. Part 1 What is the bond's YTM? + decimals Submit

  • A bond with a $1,000 face value has a 7% annual coupon rate. The bond matures...

    A bond with a $1,000 face value has a 7% annual coupon rate. The bond matures in 16 years. The current YTM on the bond is 4.6%. If this bonds' YTM were to increase to 5.8%, what would be the resulting price change in dollar terms? Round to the nearest cent. ​[Hint: 1) If the price drops, the change is a negative number. 2) Calculate the precise impact of a yield change on the bond's price by computing and comparing...

  • A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...

    A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years. It pays interest annually, and the yield to maturity is 12%. In WORDS (1-2 complete sentences each) answer the following questions. What does it mean that the bond above has a face value of $1,000? What does it mean that the bond has a coupon rate of 8%? What does it mean that the bond has a maturity of 10 years?...

  • What is the price of a 3 -year, 8.1% coupon rate, $1,000 face value bond that...

    What is the price of a 3 -year, 8.1% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.9 % What is the yield to maturity of at 9.9% semiannual coupon bond with a face value of $1,000 selling for $894.71 that matures in 11 years? The annual yield to maturity of the bond is: (Select the best choice below.) A.11.62% B.11.039% C.12.201% D.13.131% E.9.528%

  • A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond...

    A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annually. The coupon rate is 7 percent. What is the current price of this bond?

  • A 7% semiannual coupon bond matures in 5 years. The bond has a face value of...

    A 7% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 7.5026%. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent. $   What is the bond's YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answers to two decimal places.     %

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