Question: A zero coupon bond maturing in 15 year/s has a par value of $1,000 and a yield to maturity of 12.8%. What is the bond's

A zero coupon bond maturing in 15 year/s has a par value of $1,000 and a yield to maturity of 12.8%. What is the bond's current price assuming semiannual compounding?

Multiple Choice

$886.52
$155.51
$939.85
$164.20

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!

A zero coupon bond maturing in 15 year/s has a par value of $1,000 and a yield to maturity of 14.0%. What is the bond's current price assuming semiannual compounding?

A zero coupon bond maturing in 10 year/s has a par value of $1,000 and a yield to maturity of 13.0%. What is the bond's current price assuming semiannual compounding? Multiple Choice $938.97 $294.59...

1. A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 5%. If the current interest rate is 4%, what is the price of the bond? 2. A bond maturing in 15 years at a par value of...

Question 3 1.5 pts Consider a coupon bond maturing in two years with a par value of $100. The yield to maturity is currently higher than the coupon rate. If interest rates remain constant, one year...

2. A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 7% and current market price of $1,140.95. If the bond is callable after 5 years at $1,050, what is the bonds yield to...

A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 7.5% and current market price of $1,145.68. If the bond is callable after 9 years at $1,095, what is the bond's yield to call?

PLEASE ANSWER ALL! 1. Which of the following statements are most likely to be false ? The effective annual interest rate will always be greater than the quoted (or annual percentage) interest rate....

Ninety days ago, you purchased a 1807day Treasury bill with a face value of $100,000. At that time, the yield to maturity on the bill was 5.0% p.a. The current yield to maturity on the bill is 4.0%...

for the following five years, Discount rate is 5. A firm that is 40% bond financed and 60% equity financed requires information from you on their weighted average cost of cost of capital The firm has...

23. A zero coupon bond matures in 15 years and has a $1,000 par value. The bond's yield to maturity is 12%. a. What is the bond's current price? b. What do you expect will be the bond's price 1 year...

Wireline Company manufactures customized transformers. The following pertains to Job No.002: Direct materials used $22,000 Direct labor hours worked 500 Direct labor rate per hour $20.00...

July 1 Wong Ah Meng started business with $100,000 in Bank. 3 Bought office fixtures by cheque $8,000. 4 Bought goods by cheque $35,000. 5 Withdrew $8,000 from bank for use in shop. 6 Bought goods on...

The two - stage dividend discount model allows for an initial high - period.

Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadian consumers buy 1.2 million televisions per year, of which 600,000 are produced domestically and...

11. Aquaculture is the growing of fish, shrimp, and other seafood in enclosed cages or ponds. The cages and ponds not only keep the seafood from swimming away but also provide aquaculturists with...

12. last word The figure in the Last Word section shows that a 10-fold increase in a countrys GDP per person is associated with about a 20-point increase in EPI. On the other hand, GDP per person was...

10. Various cultures have come up with their own methods to limit catch size and prevent fishery collapse. In old Hawaii, certain fishing grounds near shore could be used only by certain individuals....