Question: Note: I have the answer but I don't know how was it solved Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon,

Note: I have the answer but I don't know how was it solved Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion. Currently, investors are demanding a yield of 8.5% on similar bonds. If you own one of these bonds and want to sell it, how much money can you expect to receive on it?

The Answer

Using Financial Calculator

Mode: P/Y=2; C/Y = 2

Input: N I/Y PV PMT FV

Key: 28 8.5 ? 37.5 1000

Output -919.03

My question is: where did they get 28 and 37.5?

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!

Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion. Currently, investors...

I know the solution for this question. Howerver, why is the Number of Period 28? Instead of 30 because since it semi-annually ( 15 x 2 = 30?) Pricing a semi-annual bond: Last year, he Harvsi: Tirne...

Last year , The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, fifteen-year maturity, $1,000 par value, AA-rated; noncallable bonds to finance its business expansion. Currently,...

can uou please answer both images . The assignment requires you to ability to calculate bond prices. Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, fifteen-year...

19)Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. Your required return on Bond X is 6%; if you buy it, you plan to hold it for 5 years. You (and the...

It is now January 1, 2019, and you are considering the purchase of an outstanding bond that was issued on January 1, 2017. It has an 8.5% annual coupon and had a 30-year original maturity. (It...

Part A Bond X is noncallable and has 20 years to maturity, a 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 11%; and if you buy it, you plan to hold it for 5 years. You...

BOND VALUATION Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1,000 par value. Your required return on Bond X is 12%; if you buy it, you plan to hold it for 5 years....

please answer correctly. answer each component please. if youre not going to answer each component please do no answer so someone else can. Bond X is noncallable and has 20 years to maturity, a 9%...

Pricing a semi-annual bond: Last year , The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par value, AA-rated bonds to finance its business expansion. These...

Consider the case of carbon dioxide being emitted into the atmosphere. Assume that a ton of CO, emitted decays at a very slow rate; assume only 1% of the stock in the

Rework the problem in Example 13.1 in the event that the plucked point is a distance L/3 from one end. Comment on the nature of the allowed modes.

In Zachman Enterprise Framework, System model is: Planner's view Owner's view Designer's view Builder's view

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

2. Stereotypes in Prime-Time TV. Watch four hours of television during the next week, preferably during evening hours when there are more commercials. Record the number of representatives of...

d. What differences (if any) were there in the roles that members of the various groups played? Did one group play more sophisticated or more glamorous roles than others?

c. What groups were least represented? Why do you think this is so?