Calculate the price of a 3 year bond with a face value of $10000, coupon rate of
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Q3) What is the yield to maturity for a 3- year bond with a face value of $100000, a coupon rate of 9%, and the current price of the bond is $75000. Coupon payments are made annually
Q4) What is the annual yield to maturity for a 10 year bond with a face value of $40000, a coupon rate of 3% being bought by an investor for $ 45000? Interest payments are made quarterly
Q5) A change in interest rates for two 10-year bonds with coupon rates of 6% and 9% respectively will sell at a discount premium or par and calculate the bond price
Q6) Securities with lower marketability have what ?
Q7) A 8 year bond with a face value of $100,000 and having a coupon rate of 8%. Coupon payments are made semi-annually. What's the present value of the first coupon payment?
Q8) Camila, as an investor, is interested in buying a preference share of a firm that pays a dividend of $0.40 every half year. If she discount such cash flows at 7% per annum, what is the price of the share?
Q9) Hawkins Ltd. has a perpetual preference share issue that pays a dividend $12 per year. Shareholders require a 12 per cent return on such an investment. What should be the price of the preference share??
Q10) Samsung's preference shares have an annual dividend of $5 (paid semi annually), a par value of $100, and an effective maturity of 20 years. If similar preference shares issues have market yields of 4%. Calculate the value of Samsung's share price.
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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