Question: A bond has $ 7 3 0 0 0 face value and the coupon rate of the bond is 3 . 3 % ( APR

A bond has $ 73000 face value and the coupon rate of the bond is 3.3%(APR). The YTM of the bond is 5.7%. What is the fair price of the bond assuming that the maturity of the bond is 4 years and the bond pays coupon in every 3 months.

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!

Q:

A bond has 2 years to maturity and face value $1000. Its coupon rate is 4%. If its yield to maturity is 6%, its price is closest to: Select one: O a. 927.73 b. 890.00 O c. 897.33 d. 963.33 Clear my...

Q:

1. What is the price of a bond with the following features? 5 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 1.7% APR. 2. You own a bond with the...

Q:

Question 3 2 pts A bond was just issued with a $1,000 face value and a coupon rate of 9%. If the bond has a life of 10 years, pays annual coupons, and the YTM is 7.5%, what will the bond sell for?...

Q:

If you have a bond with $ 1 0 0 0 face value pays annual coupon rate 6 % with YTM 6 % and 3 years to maturity calculate the Macaulay duration. If YTM for the same bond changes to 1 0 % what is the...

Q:

1.You own a bond with the following features: Face value of $1000, Coupon rate of 5% (annual) 10 years to maturity. The bond is callable after2 years with the call price of $1,074. If the market...

Q:

W.F. Prince Bond Financing Case W. F. Prince is a wholesaler of industrial lighting fixtures with sales of around $190,000,000 per year. The company currently outsources almost all of its...

Q:

1. What is a fair purchase price for a zero-coupon bond with 7 years to maturity, a face value of $6,000, and a yield-to-maturity of 9.38%? (Answer to the nearest $0.01) 2. What is a fair price of a...

Q:

A bond has face value of $1,000, coupon rate of 4%, yield to maturity of 7%, and matures in 11 years. The coupon payments are made semiannually. Find current yield and capital gains yield in eight...

Q:

TATA, an Indian motor company, plans to raise GBP 10 million (or equivalent in other currencies) to acquire Lotus, a British firm. Therefore, TATA decides to issue foreign bonds and has the following...

Q:

In this assignment, you will be tasked with calculating the value of three different types of bonds and analyzing their characteristics. You will work with a ParValue Bond, Discount Bond, and Premium...

Q:

Write a paper in which youll include the following: Profile States Medicaid population Details size of Medicaid spending What services are covered by program funding? Provide relevant public health...

Q:

For Problem 16.11, following steps outlined in Example 16.6 perform a weighted least squares adjustment of the network. Determine weights based upon the given standard deviations. What are the (a)...

Q:

13 Here are two calculation cards. Read what Sofia says. Is Sofia correct? Show all your working. A (1+1)x(2-3) B (31+2)+(+14)

Q:

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Q:

1. Discuss the reasons for some line managers apparent reluctance to get involved in performance management and suggest ways to convince them of the value of this process to them.

Q:

5. From the techniques presented in this chapter, which ones would be useful in establishing if the candidate has the knowledge and skills, as stated in their CV?

Q:

5. Why do employment interviews have such a low validity and what can be done to improve the validity?