Question: You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is

You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is 5.1 percent.Assume semiannual compounding periods. t is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, 0.g,32.16 Price

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!

You find a zero coupon bond with a par value of $10, 000 and 30 years to maturity. The yield of maturity on this bond is 5.2 percent. Assume semiannual compounding periods. What is the price of the...

9. 9. Zero coupon bonds [LO 7.2] You find a zero coupon bond with a face value of $10 000 and 17 years to maturity. If the yield to maturity on this bond is 4.2 per cent, what is the price of the...

You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is 5.1 percent. Assume semiannual compounding periods. What is the dollar price of...

You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent, what is the price of the bond? Assume semiannual compounding...

You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. The yield to maturity on this bond is 4.6 percent. Assume semiannual compounding periods. What is the price of the...

Kindly give all answers as a formula please. E l Calculating a bond FORMULAS DATA HOME INSERT PAGE LAYOUT VW VW BIL BIU.E. - Alignment Number Fo n g Table Styles You find a zero coupon bond with a...

You find a zero coupon bond with a par value of $1,000 and 10 years to maturity. If the yield to maturity on this bond is 3.6 percent, what is the price of the bond? Assume semiannual compounding...

X All answers must be entered as a formula. Click OK to begin. OK A B D E F G H 1 J 1 2 2 3 You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity...

1. You find a zero coupon bond with a par value of $5,000 and 19 years to maturity. If the yield to maturity on this bond is 5.1 percent, what is the price of the bond? Assume semiannual compounding...

Poindexter received a 55 on a biology test (X = 50) and a 45 on a philosophy test (X = 50). He is considering whether to ask his two professors to curve the grades using z-scores. (a) Does he want...

On August 1 of year 0, Dirksen purchased a machine for $28,750 to use in its business. On December 4 of year O, Dirksen sold the machine for $28,000. Use MACRS Table. (Loss amounts should be...

Lugo Investment Limited has been offered an 8 - year, R 2 , 0 0 0 , 0 0 0 loan to expand one of itssawmills. The annual interest rate on the loan is 1 5 % , payable monthly.a ) b ) Calculate the...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...