The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is
8.8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is
10.3%, then the price that this bond trades for will be closest to:
Information provided:
Face value= future value= $1,000
Time= 9 years*2= 18 semi-annual periods
Coupon rate= 8.8%/2= 4.4%
Coupon payment= 0.044*1,000= $44
Yield to maturity= 10.3%/2= 5.15%
The price of the bond is calculated by computing the present value.
The below has to be entered in a financial calculator to compute the present value:
FV= 1,000
N= 18
PMT= 44
I/Y= 5.15
Press the CPT key and PV to calculate the present value.
The value obtained is 913.35.
Therefore, the price of the bond is $913.35.
In case of any query, kindly comment on the solution.
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity...
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 12%, then the price that this bond trades for will be closest to:
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.8% , then the price that this bond trades for will be closest to: a. $853 b. $1,194 c. $682 d. $1,024
The Sisyphean Company has a bond outstanding with a face value of $ 1000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.3%, then the price that this bond trades for will be closest to:
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10 years. The bond certificate indicates old that the stated coupon rate for this bond is 9% and that the coupon payments are to be made semiannually Assuming the appropriate YTM on the Sisyphean bond is 9.7%, then the price that this bond trades for will be closest to O A. $1,338 OB. $765 O C. $956 OD. $1,147
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.9% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.4%, then the price that this bond trades for will be closest to: O A. $943 OB. $1,131 O c. $754 OD. $1,320
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $ 963, then the YTM for this bond is closest to:
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is 84% and that the coupon payments are to be made semiannually Assuming the appropriate YTM on the Sisyphean bond is 9.8%, then the price that this bond trades for will be closest to O A. $3,670 O B. $4,588 OC. $5,505 OD. $6,423
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.8% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4,684, then the YTM for this bond is closest to: O A. 13.7% O B. 7.8% OC. 9.8% OD. 11.8%
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coup rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.4%, then the price that this bond trades for will be closest to: O A. $5,843 OB. $4,173 OC. $3,339 D. $5,008
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 88% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.5%, then the price that this bond trades for will be closest to: A.$4,515 B.$3,010 C.$5,268 D. $ 3763