Question: Please check if this questions is right and if not, please correct! 5. Compute the value of a bond with a typical $1000 par value,

Please check if this questions is right and if not, please correct!

5. Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25% with semi-annual payments, and a 30-year maturity if investors required a yield to maturity of 1.08% on the bond (or 108 basis points).

1000*0.225*1/2 = $11.25
0.0108*1/2 = 0.0054
(-PV(rate,nper,pmt,fv))
(-PV(0.0054,60,11.25,1000))
= $1,299.13

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!

Please see the attached assignment I need help with. Please show the step-by-step process in how calculations are done and include how to compute in Excel. Thank you!! International Business Machines...

Part 2 of assignment 70000 Can you please answer the following questions - (Please show me the steps) Problem 3 What is the price of a $1,000 par value semi-annual bond with 22 years to maturity and...

answers are given. please show calculation if you use calculator or formulas below. please show calculation. see formulas below w 10) A company issues a ten-year $1,000 face value bond at par with a...

Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the...

Answer each questions in detail & provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the questions below. 1. Please...

Please check if 6 is right and if not correct. 5. Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25% with semi-annual payments, and a 30-year maturity if investors...

midterm II, any assistance on the answer is appreciated. CONTACT ME HERE NOW FOR HELP WITH YOUR FINANCE PROBLEM HERE IS MY EMAIL;devinortis@gmail.com I ACCEPT PAYMENTS VIA...

May you please look over my answers to check if there correct. Thank you Module 4 - BEATRICE PEABODY - Questions 1. According to ValueLine estimates in Figure 1, James River's expected annual...

Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: Bond A has a 9% annual coupon,...

Modern Technology Company was established during August, 2018 with the following authorized capital:- -Common Stock of Rs. 10 each 10% Preferred Stock of Rs. 50 each 500,000 shares 200,000 shares The...

If Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per year, what effect will the increase have on the break-even volume computed in Problem 13?

Jack purchased 1 0 0 shares of Ford stock on April 2 2 , 2 0 2 3 , If he sells the stock on April 2 1 , 2 0 2 4 , what is the character of the sale?

i need the answers of the cases 2 to 5 using FIFO Please answer case 2 to 5. Stage of Completion 75% In Process Beginning Started In Process End Transferred Out Quantity 10,000 70,000 ? 75,000 40%...