Consider a bond, which pays 7% semiannually and has 8 years to maturity. The market requires an
Question:
Consider a bond, which pays 7% semiannually and has 8 years to maturity. The market requires an interest rate of 8% on bonds of this risk. What is this bond's price?
A. $ 942.50
B. $ 911.52
C. $ 941.74
D. $1,064.81
E. None of the above.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
C 94174 Bond value Face value 1000 ...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Question Posted:
Students also viewed these Corporate Finance questions
-
A Treasury bond with 8 years to maturity is currently quoted at 107:14. The bond has a coupon rate of 7.5 percent. What is the yield value of a 32nd for this bond?
-
A bank pays a simple interest rate of 4.1% on 30-day to 179-day GICs of at least $100,000. What is the effective annualized rate of return a. On a 40-day GIC? b. On a 160-day GIC?
-
A company borrowed $180,000 at an interest rate of 9% compounded annually over six years. The loan will be repaid in installments at the end of each year according to the accompanying repayment...
-
What conditions must apply for Andersons classification of tectonic stress to be strictly valid?
-
Compute the longitudinal tensile strength of an aligned glass fiber-epoxy matrix composite in which the average fiber diameter and length are 0.010 mm (4 10-4 in.) and 2.5 mm (0.10 in.),...
-
The 16-lb uniform bar AB is hinged at C and is attached at A to a spring of constant 50 k = lb/ft. If end A is given a small displacement and released, determine (a) The frequency of small...
-
Find the displacement of node 3 and the stresses in the two members of the truss shown in Fig. 12.25. Assume that the Young's modulus and the cross-sectional areas of the two members are the same...
-
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred....
-
7. A child is pulling a 2.00 kg wooden toboggan across rough snow at a constant velocity. The rope pulls upward on the toboggan at an angle of 25 above the horizontal. Friction is not negligible. (a)...
-
Write a program that displays Welcome to Java, Welcome to Computer Science, and Programming is fun.
-
If you want to have $600,000 for retirement in 20 years and have only $100,000 saved today, how much do you need to put away at the end of each year until retirement if your assets can earn 8% per...
-
Assume Venture Healthcare sold bonds that have a 10-year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. a) Suppose that two years after the bonds were issued, the required...
-
(a) Are leaders born or made? (b) Explain your answer. (c) What are the core characteristics possessed by effective leaders?
-
A nonlinear model is given. a. Obtain the linear state-space form in Simulink. b. Derive the linearized model analytically to confirm the result of (a). \(\ddot{x}+\dot{x}+x|x|=1+\sin t, \quad...
-
Derive the linearized model for the nonlinear system, described by \[\begin{cases}\dot{x}_{1}=x_{1}\left|x_{1} ight|+x_{2}-1+\sin t & x_{1}(0)=-1 \\ \dot{x}_{2}=-x_{1}-x_{2}-1 &...
-
Use MATLAB commands to define the systems in the state-space form and then convert to the transfer function form. Assume that the displacements of the two masses, \(x_{1}\) and \(x_{2}\), are the...
-
Use MATLAB commands to define the systems in the state-space form and then convert to the transfer function form. Assume that the displacements of the two masses, \(x_{1}\) and \(x_{2}\), are the...
-
A robot arm consists of rigid links connected by joints allowing the relative motion of neighboring links. The dynamic model for a robot arm can be derived using Lagrange's equations...
-
In what ways does the termination phase of a project differ from the closedown of a failed company? What are the similarities?
-
Suppose that a company has 10.000 outstanding shares in the beginning of the year. On April 1st, the company increases its shares by 6.000. On July 1st, the company increases its shares again, but...
-
Presented below in alphabetical order are balance sheet items for Feagler Company at December 31, 2025. Prepare a balance sheet following the format of Illustration 1.8. Data from Illustration 1.8...
-
A recent study found that racially mixed juries deliberated longer, raised more facts, and conducted broader and more wide ranging deliberations than either all white or all black juries. Why do you...
-
Are there differences in the average individual scores and the team scores? What are the reasons for the differences, if any?
-
Although the team scores in this exercise usually are higher than the average individual scores, under what conditions might individual averages exceed group scores?
-
Giving a test to a group of students, the grades and gender are summarized below A B C Total Male Female 10 3 15 28 8 20 19 47 Total 18 23 34 75 If one student is chosen at random, Find the...
-
K A universal set U consists of 16 elements. If sets A, B, and C are proper subsets of U and n(U) 16, n(An B) = n(An C) = n(BNC) = 6, n(AnBn C) = 2, and n(A UBU C) = 14, determine each of the...
-
Without solving, say whether the equation has two solutions, one solution, or no solution. The equation has because (x+4) = 19
Study smarter with the SolutionInn App