What is the price of a bond with 30 years to maturity and with an annual coupon

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

Question:

What is the price of a bond with 30 years to maturity and with an annual coupon payment of 10 dollars and a face value of $1000 if the current yield to maturity.

Related Book For answer-question

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

See More Books

Posted Date: May 16, 2023 08:25 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...
The term structure of interest rates is flat at 4.3 %, but rates could change immediately to 6.3 % or 2.3 % with a probability of 0.48 and 0.52, respectively, and stay at that level forever. You...
1. Suppose a bond that has semiannual coupons is selling for $10,500. It has 7 years left until maturity. Its par value is $10,000 and its YTM is 7%. What is this bonds annual coupon rate? 2. If the...
There is a crop that the value p next month is random. The value can be either small p=1 or large P=3 depending on the weather. Half of people are optimists believing the value of the crop will be...
(a) List four reasons why glass fibers are most commonly used for reinforcement. (b) Why is the surface perfection of glass fibers so important? (c) What measures are taken to protect the surface of...
Using the Accounting Equation, fill in the (letter) blanks below: Corporation A Corporation B Assets (beginning) $92,500 $144,000 Liabilities (beginning) 51,500 (y) Equity (beginning) (a) ?? Assets...
Natural frequency of aluminum bar given a. $58554 \mathrm{rad} / \mathrm{s}$ lumped-mass matrices b. $33806 \mathrm{rad} / \mathrm{s}$ consistent-mass matrices c. \(33758 \mathrm{rad} /...
Given the following information for an important purchased part, compute the (a) EOQ (b) Total purchase cost (c) Annual holding cost (d) Annual order cost (e) Annual total cost (f) Reorder point (g)...
In recent years, Jayme Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation...
Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,500 cases of Oktoberfest-style beer from a German supplier for 390,000 euros. Relevant U.S. dollar exchange rates for the euro...
Explain how to price a bond issuance. If Mark Industries issues $2,000,000 of 10 year bonds on Jan. 1st, 2023. They have a coupon or stated rate of 6% paying semi-annual interest on 6-30 and 12-31....
What are the major types of leaders? List and briefly explain.
What is the cash flowbased value, and what is the formula to estimate a business value under the cash flow method?
What are the key factors to be considered when it comes to making the right choice of business location?
Briefly describe Stage II of turning a business idea into a real product.
List and explain the major business strategies.
Read IMA Statement of Ethical Professional Practice. What did you find most useful or most interesting in the statement when it comes to the ethical responsibilities that apply to managerial...
Should U.S. antidumping laws be stated in terms of average total costs or average variable costs?
A lakefront house in Kingston, Ontario, is for sale with an asking price of $499,000. The real estate market has been quite active, so the house will almost certainly attract several offers, and may...
The analysis of a two-division company (DV2) has indicated that the beta of the entire company is 1.35. The company is 100-percent equity funded. The company has two divisions: Major League TV (MLTV)...
Currently a firm has an operating cash flow of $350 million and there is a promising project available, which costs $200 million. There are 100 million shares outstanding with a current price of $40...
Explain the difference between dollar-value estimation and hypothesis testing in audit sampling. Which of the two is more common in auditing?
Define what is meant by an audit population. What is the importance of an auditor's characteristic of interest when defining an audit population?
Identify the relative advantages and disadvantages of probability-proportional-tosize sampling.

What is the price of a bond with 30 years to maturity and with an annual coupon

Question:

Expert Answer:

SOLUTION To calculate the price of a bond with a 30year maturity 10 annual c... View the full answer

Introduction To Corporate Finance

Students also viewed these finance questions