Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 9 percent annual interest The current yield to maturity on such bonds in the market is 12 percent Compute the price of the bonds for the following maturity dates a 30 years b 15 years c 1 year ...

Kilgore Natural Gas a 30 years to maturity N IY PV PMT FV 30 12 CPT PV 75834 90 1000 75834 Bond pric ...

Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 9 percent annual interest. The

Question:

Kilgore Natural Gas has a $1,000 bond outstanding that pays 9 percent annual interest. The current yield to on such bonds in the market is 12 percent. Compute the price of the bonds for the following dates:
a. 30 years
b. 15 years
c. 1 year

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...