Question: You bought a 8-year bond with $100 face value at a price of $105 with a coupon rate of 11.00% paid semiannually. After 3 years,

You bought a 8-year bond with

$100

face value at a price of

$105

with a coupon rate of

11.00%

paid semiannually. After 3 years, ( 5 full years left in maturity) you decide to sell it and you find that the new yield to maturity is

12.00%

APR. Based on this information, what is the selling price of this bond?\

$94.95

$96.32

$99.30

$105.00

You bought a 8-year bond with $100 face value at a price of $105 with a coupon rate of 11.00% paid semiannually. After 3 years, ( 5 full years left in maturity) you decide to sell it and you find that the new yield to maturity is 12.00% APR. Based on this information, what is the selling price of this bond? $94.95 $96.32 $99.30 $105.00

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!

On June 4, Marie Company had cash sales rung up by cashiers totaling $120,500. Cash in the drawer was counted and found to be $126,000. The journal entry to record the sales for June 4, would include...

You just bought a 14-year bond with $100 face value trading at par with a coupon rate of 7.00% paid semi-annually. After 3 years (11 years left in maturity) you decide to sell it and you find that...

You just bought a 11-year bond with $100 face value trading at par with a coupon rate of 6.00% paid semi-annually. After 4 years (7 years left in maturity) you decide to sell it and you find that the...

You bought a 12-year bond with $100 face value at a price of $109.5 with a coupon rate of 7.00% paid semiannually. After 4 years, (8 full years left in maturity) you decide to sell it and you find...

a You bought a 12-year bond with $100 face value at a price of $100.5 with a coupon rate of 6.00% paid semiannually. After 2 years, (10 years left in maturity) you decide to sell it and you find that...

You bought a 7-year bond with $100 face value at a price of $97 with a coupon rate of 5.00% paid semiannually. After 2 years, (5 years left in maturity) you decide to sell it and you find that the...

You bought a 10-year bond with $100 face value at a price of $101 with a coupon rate of 5.00% paid semiannually. After 5 years, (5 years left in maturity) you decide to sell it and you find that the...

You bought a 7-year bond with $100 face value at a price of $103.5 with a coupon rate of 11.00% paid annually. After 3 years, (4 years left in maturity) you decide to sell it and you find that the...

You bought a 9-year bond with $100 face value at a price of $102 with a coupon rate of 12.00% paid semiannually. After 2 years, (7 years left in maturity) you decide to sell it and you find that the...

Question 2 1 pts Four years ago you bought a 11-year bond with $100 face value trading at par with a coupon rate of 5.00% paid annually. Today, after 4 years (7 years left in maturity), you decide to...

You bought a 14-year bond with $100 face value at a price of $101 with a coupon rate of 7.00% paid quarterly. After 2 years, (12 years left in maturity) you decide to sell it and you find that the...

Why does the carbocation intermediate in the hydrolysis of 2- bromo-3-methylbutane rearrange by way of a hydride shift rather than a methyl shift?

The moment of inertia of combined ring system about the centre of ring will be when each small ring having mass M and radius R (A) MR (B) MR (C) #MR (D) # MR?

Guugle Inc. has a Profit Margin of 5 . 4 % and a Total Asset Turnover of 1 . 5 . The firm's Return on Assets ( ROA ) is _ _ _ _ _ _ _ % . Margin of error for correct responses: + / - . 0 5 ( % )...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

8-10 This project uses spreadsheet software to calculate anticipated annual losses from various security threats identified for a small company. Mercer Paints is a paint manufacturing company located...

8-8 Gifty is an online e-tailer for handmade gifts. Customers can purchase either via its Web site or via a mobile app. Prepare a security analysis for this Internet-based business. What kinds of...

8-16 Describe some of the weaknesses exploited by malware The IT sector is one of the key drivers of the European economy. It has been estimated that 60 percent of Europeans use the Internet...