Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 12% 20 9% ?...

     

Transcribed Image Text:

Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 12% 20 9% ? $1,000.00 7% 30 5% ? $5,000.00 9% 15 6% ? $1,000.00 8% 10 10% ? Zero-coupon bond. Addison Company will issue a zero-coupon bond this coming month. The bond's projected yield is 3%. If the par value is $5,000, what is the bond's price using a semiannual convention if a. the maturity is 15 years? b. the maturity is 35 years? c. the maturity is 60 years? d. the maturity is 100 years? Bond prices and maturity dates. Les Company is about to issue a bond with annual coupon payments, an annual coupon rate of 11%, and a par value of $5,000. The yield to maturity for this bond is 8%. a. What is the price of the bond if it matures in 10, 15, 20, or 25 years? b. What do you notice about the price of the bond in relationship to the maturity of the bond? Years to Yield to Par Value $1,000.00 Coupon Rate 11% Maturity Maturity Price 10 6% ? $1,000.00 10% 30 11% ? $5,000.00 8% 5 10% ? $5,000.00 12% 25 7% ? Par Value Coupon Rate Years to Maturity Yield to Maturity Price $5,000.00 10% 30 9% ? $1,000.00 11% 25 7% ? $1,000.00 5% 20 11% ? $1,000.00 9% 15 5% ? Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 12% 20 9% ? $1,000.00 7% 30 5% ? $5,000.00 9% 15 6% ? $1,000.00 8% 10 10% ? Zero-coupon bond. Addison Company will issue a zero-coupon bond this coming month. The bond's projected yield is 3%. If the par value is $5,000, what is the bond's price using a semiannual convention if a. the maturity is 15 years? b. the maturity is 35 years? c. the maturity is 60 years? d. the maturity is 100 years? Bond prices and maturity dates. Les Company is about to issue a bond with annual coupon payments, an annual coupon rate of 11%, and a par value of $5,000. The yield to maturity for this bond is 8%. a. What is the price of the bond if it matures in 10, 15, 20, or 25 years? b. What do you notice about the price of the bond in relationship to the maturity of the bond? Years to Yield to Par Value $1,000.00 Coupon Rate 11% Maturity Maturity Price 10 6% ? $1,000.00 10% 30 11% ? $5,000.00 8% 5 10% ? $5,000.00 12% 25 7% ? Par Value Coupon Rate Years to Maturity Yield to Maturity Price $5,000.00 10% 30 9% ? $1,000.00 11% 25 7% ? $1,000.00 5% 20 11% ? $1,000.00 9% 15 5% ?