Question: a 25-year , $1000 par value bond has an 8.5% annual coupon. the bond currently sells for $875. if the yield to maturity temains at

a 25-year , $1000 par value bond has an 8.5% annual coupon. the bond currently sells for $875. if the yield to maturity temains at its current rate, what will the price be 5 years from now?

A. $839.31

B. $860.83

C. $882.90

D. $904.97

E. $927.60

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Assignment 1. A Walmart suppliers demand forecasting team estimates that the demand for jeans is on average 600 pairs per month with a standard deviation of 255 pairs. They assume that the demand is...

Kindly show the working for the questions as well for better understanding. QUESTION 1 Your child's orthodontist offers you two alternative payment plans. The first plan requires a $4,000 immediate...

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will be price be 7 years from now? *Mention...

Question 3: A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 5 years from now

Quiz Instructions Quion 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 D Question 2 1 pts A 25-year, $1,000 par value bond has an 8.5% annual coupon, The band...

6. Chapter MC, Section .05, Problem 029.Algo A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $1,025. If the yield to maturity remains at its current rate,...

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $1,025. If the yield to maturity remains at its current rate, what will the price be 5 years from now? Select...

1. Cable Bahamas also has a 25-year, $1,000 par value bond with a 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 5...

Question 14 1 pts Niendorf Corporation's 5-year bonds yield 6.75%, and 5-year T-bonds yield 4.65%. The real risk- free rate is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.40%, the...

A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will be the price 5 years from now?

The Colonization Of Aquarius is a small planet that orbits a solar type of sun, it is located in the right and a little behind Polaris the north star. This plant was discovered on the year 2073 this...

1. Show the comparisons the nave string matcher makes for the pattern P=0001 in the text T=000010001010001. 2. Show the steps in the Rabin-Karp algorithm with patter P=CDD, text T=ABCCDDAEFG for...

q , can be interpreted as the breakeven financing rate that leads to a profitable project. Profitability index The internal fate of return Net present value Discounted payback period q , can be...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".