What is the price of a 1,000 par value six-month bond with 14 years to maturity, a

Fantastic news! We've Found the answer you've been seeking!

Question:

What is the price of a 1,000 par value six-month bond with 14 years to maturity, a coupon rate of 4.82%, and a yield-to-maturity yield of 3.49%?

What is the price of a 4-year 1,000 nominal value bond with a coupon rate of 9.51% and a yield to maturity of 5.03%?

You bought a 10-year maturity, 8.28% six-month coupon bond today and the current market rate of return is 7.38%. The bond can be called within 6 years with a $74 call premium. How much did you pay for the bond?

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

See More Books

Posted Date: Apr 26, 2023 07:11 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
You are given the following prices for zero coupon bonds with $1,000 face amount: One-year bond Two-year bond Three year bond $945 $920 $900 Find the price today for a two-year 4% coupon bond.
The following discussion took place between Erin Carr, the office manager of Panda Data Company, and a new accountant, Mark Goodell. Mar: Ive been thinking about our method of recording entries it...
Glenrock Ltd is considering whether to supply a large departmental store with its products. The contract will last for 50 weeks. The accountant at Glenrock has prepared the following estimates:...
True or False. In breakdown maintenance, the machine is run until failure.
1. Suppose 1,000 people would each get a benefit of $40 from a levee. Building the levee is socially efficient if its cost is less than $ _________. If the cost is $30,000, a tax of $_________ per...
I have 5 kg of ice @ -10 degrees Celsius. How much heat (in Joules) do I need to: A: Bring that to 5 kg of ice @ 0 degrees Celsius B: Change it from 5 kg ice 0 degrees to 5 kg Water @ 0 degrees. C....
On January 30 of the current year, Ashton Corporation purchased from Cathy 10% of Todd Corporation stock for $250,000 in cash. On May 30 of the following year, Andrea and Bill each exchange one-half...
63. 1. Use data to plot the graph and show it in your work. 2. What is Market price? 3. What is the quantity demanded at the market price? 4. What is the quantity supplied at the market price? 5. At...
Aisha is a wealthy businesswoman and property developer. She has been married to her husband Jamal, a solicitor, for over 30 years. They have a close relationship and have a joint bank account, but...
what ways does the sociological study of deviance inform our understanding of social control and governance, and what ethical considerations should be taken into account when implementing policies...
What are the three major categories of damages? Explain each. What is the difference between general and special damages? When is it appropriate to award nominal damages? When is it appropriate to...
Compare and contrast the following statutes that address the justification defense of habitat. A.R.S. (Arizona) 13-407.Justification; use of physical force in defense of premises A. A person or his...
How do economic disparities and social stratification contribute to higher rates of deviant behavior in certain populations, and what policies might address the underlying social conditions that...
The price of a share is trading at 100 in London and $150 in New York. The current exchange rate is 1.5300. What is the arbitrage opportunity?
Write a function that reads a Float24_t value: Float24_t float24_read(void) A legitimate float24 value string is of the form: "mantissabexponent" where the mantissa (m) and the exponent (e) may have...
Suppose investors face a tax rate of 40 % on interest received from corporate bonds. Suppose AAA-rated corporate bonds currently offer yields of about 7 %. Approximately what yield would AAA-rated...
The initial proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. In each case the...
Berlin Inc. expects sales of $300,000 during each of the next three months. It will make monthly purchases of $180,000 during this time. Wages and salaries are $30,000 per month plus 5% of monthly...
All transactions below relate to Alpha Ltds uncollectable accounts for the financial year ended 30 June 2023. Ignore GST The Accounts Receivable account, prior to the transactions listed above, had a...
The accountant for Metro Motorcycles Ltd prepared an aged analysis of accounts receivable balances at 30 June 2023. The percentages of each age group are based on historical analysis and are...
Foodies Warehouse Supplies Ltd has traditionally made sales for cash and on credit only. Management has resisted accepting credit cards on the basis that the business would lose on average a credit...

What is the price of a 1,000 par value six-month bond with 14 years to maturity, a

Question:

Expert Answer:

To calculate the price of a bond we can use the following formula Price of bond Coupon payment 1 Yie... View the full answer

Introduction to Corporate Finance What Companies Do

Students also viewed these finance questions