Question: A bond has a 2 0 - year maturity, a 7 % semiannual coupon, and a par of $ 1 , 0 0 0 .

A bond has a 20-year maturity, a 7% semiannual coupon, and a par of $1,000. The yield to maturity (r d) is 6% with semiannual compounding. What is the bonds price?
$1,119.42
$1,115.57
$1,120.58
$929.21

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:

Logan Corp. issued a non - callable bond that has 1 6 years to maturity, an 7 % semi - annual coupon, and a $ 1 . 0 0 0 par value. Your required return on the Logan Corp. Bond is 9 % ; if you buy it...

Q:

Bond A has a 12 -year maturity, a 5% semi-annual coupon, and trades at a yield of 6%. Bond B has a 12 -year maturity, a 5% semi-annual coupon, and trades at a yield of 7%. Which bond will have the...

Q:

2. The Yakuza Corporation has 3 million shares of common stock outstanding with a current price of $26 and per share; 450,000 shares of preferred stock currently trading at $62 and paying an $8...

Q:

Tesla has 3 million shares of common stock outstanding with a current price of $26 and per share; 450,000 shares of preferred stock currently trading at $62 and paying an $8 annual dividend per...

Q:

The Yakuza Corporation has 3 million shares of common stock outstanding with a current price of $26 and per share; 450,000 shares of preferred stock currently trading at $62 and paying an $8 annual...

Q:

Apple has 3 million shares of common stock outstanding with a current price of $26 and per share; 450,000 shares of preferred stock currently trading at $62 and paying an $8 annual dividend per...

Q:

please show all work in excel The Yakuza Corporation has 3 million shares of common stock outstanding with a current price of $26 and per share; 450,000 shares of preferred stock currently trading at...

Q:

a $1,000 par value bond with two (2) years to maturity and a 6% coupon has a yield to maturity of 8%. interest is paid semiannually. what is the macaylay duration of the bond?

Q:

Chap 7: Bond Valuation 1. You are considering a 15-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semi-annually. If you require a rate of 14.2%, how much should you be...

Q:

Answer this question it is a finance question with full dats if you feel it is incomplete please tell what is missing You work in the Finance division of the Geelong Manufacturing Company Ltd. The...

Q:

A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and face value $1,000. Find the imputed interest income in the first, second, and last year of the bonds...

Q:

A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $3 million...

Q:

Which of the following are true? I. A flat yield curve indicates that interest rates are expected to remain constant. II . Long - term interest rates tend to be lower than short - term interest rates...

Q:

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Q:

Ethics. For each of the following behaviors,explain whether it is illegal and/or unethical and what effect the behavior could have on an employee and employer. (Objectives 2, 3, 4, and 5) a. Sending...

Q:

Global. Ethics. Technology. Assume that you are a good friend of an executive of a company that markets widgets in the Bahamas. You have stock in this company, and your friend casually mentions that...

Q:

Ethics. Assume that a section of the company policy where you work conflicts with your individual value system.When a situation arises that requires application of this policy for a communication...