A 2020-year bond with a face value of $ 1 comma 000$1,000 has a coupon rate...

Question

Question

A 2020-year bond with a face value of $ 1 comma 000$1,000 has a coupon rate of 7.50 %7.50%, with semiannual payments.

a. What is the coupon payment for this bond?

b. Enter the cash flows for the bond on a timeline.

a. What is the coupon payment for this bond?

The coupon payment for this bond is $ _______. (Round to the nearest cent.)

b. Enter the cash flows for the bond on a timeline.

Cash Flow	CF 1	CF 2	CF 39	CF 40
Amount (Round to the nearest cent.)	$_____	$_____	$_____	$_____

business finance

Answer 1

Answer #1

a.Coupon Payment = Face value*Coupon Rate

= 1,000*7.5%*1/2 = $37.5

b.Timeline

Coupon payments for 39 periods and principal+coupon payment in 40th payment

Cash Flow	CF 1	CF 2	CF 39	CF 40
Amount (Round to the nearest cent.)	$37.5	$37.5	$37.5	$1,037.5

Answer 2

Similar Homework Help Questions

A 15-year bond with a face value of $1,000 has a coupon rate of 6.00%, with...

A 15-year bond with a face value of $1,000 has a coupon rate of 6.00%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ 30. (Round to the nearest cent.) b. Enter the cash flows for the bond on a timeline. Cash Flow CF CF2 CF 29 CF30 9.3...
Consider a 15-year bond with a face value of $ 1,000 that has a coupon rate...

Consider a 15-year bond with a face value of $ 1,000 that has a coupon rate of 5.4 %, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline
Consider a 20-year bond with a face value of $1,000 that has a coupon rate of 5.3%

Consider a 20-year bond with a face value of $1,000 that has a coupon rate of 5.3%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline

A zero coupon bond has a face value of $ 1 comma 000$1,000 and matures in...

A zero coupon bond has a face value of $ 1 comma 000$1,000 and matures in 44 years. Investors require a(n) 7.4 %7.4% annual return on these bonds. What should be the selling price of the bond? The price of the bond is $
Assume that a bond will make payments every six months as shown on the following timeline...

Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 40. The timeline shows a cash flow of $ 19.32 each from Period 1 to Period 39. In Period 40, the cash flow is $ 19.32 plus $ 1,000. PeriodPeriod 00 11 22 nothing 3939 4040 Cash FlowsCash Flows nothing $ 19.32$19.32 $ 19.32$19.32 nothing $ 19.32 $ 19.32 plus $...
The 10-year Coupon Bond has a face value of $1,000, the annual coupon rate is 5...

The 10-year Coupon Bond has a face value of $1,000, the annual coupon rate is 5 percent (out of its face value), the yield to maturity is 10 percent. (2.a) show me the cash flows of this coupon bond, you can use words or a timeline graph you created. (2.b) compute the price (present value) of this bond (2.c) suppose the yield to maturity increases to 20 percent after one year, computes the new price. (remember that as time passed...

What is the value of a 10-year, 7.1% coupon rate, $1,000 face value bond with annual...

What is the value of a 10-year, 7.1% coupon rate, $1,000 face value bond with annual coupon payments, if similar bonds (same maturity, same risk profile) are trading at a yield to maturity of 4.1%? Round to the nearest cent.
What is the value of a 7-year, 7.7% coupon rate, $1,000 face value bond with annual...

What is the value of a 7-year, 7.7% coupon rate, $1,000 face value bond with annual coupon payments, if similar bonds (same maturity, same risk profile) are trading at a yield to maturity of 3.4%? Round to the nearest cent.
What is the value of a 5-year, 8.0% coupon rate, $1,000 face value bond with annual...

What is the value of a 5-year, 8.0% coupon rate, $1,000 face value bond with annual coupon payments, if similar bonds (same maturity, same risk profile) are trading at a yield to maturity of 3.0%? Round to the nearest cent. Numeric Answer:

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.20%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $940? b. What is the yield to maturity if the bond is selling for $1,000? c. What is the yield to maturity if the bond is selling for $1,145?

A 2020​-year bond with a face value of $ 1 comma 000$1,000 has a coupon rate...