A 14-year zero-coupon bond was issued with a $1000 par value to yield 12%. What is the approximate market value of the bond? a. $597 b. $205 c. $275 d. $482 46. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 8.2% on these bonds. What is the bond's price? a. $903.04 b. $925.62 c. $948.76 d. $996.79 47. Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 7.0%, at what price should the bonds sell? a. $838.07 b. $859.56 c. $881.60 d. $903.64
A 14-year zero-coupon bond was issued with a $1000 par value to yield 12%. What is the approximate market value of the bond? a. $597 b. $205 c. $275 d. $482 46. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 8.2% on these bonds. What is the bond's price? a. $903.04 b. $925.62 c. $948.76 d. $996.79 47. Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 7.0%, at what price should the bonds sell? a. $838.07 b. $859.56 c. $881.60 d. $903.64
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
A 14-year zero-coupon bond was issued with a $1000 par value to
yield 12%. What is the approximate market value of the bond?
a. $597
b. $205
c. $275
d. $482
46. Morin Company's bonds mature in 8 years, have a par value of
$1,000, and make an annual coupon interest payment of $65. The
market requires an interest rate of 8.2% on these bonds. What is
thebond's price ?
a. $903.04
b. $925.62
c. $948.76
d. $996.79
47. Ryngaert Inc. recently issued noncallable bonds that mature in
15 years. They have a par value of $1,000 and an annual coupon
of 5.7%. If the current market interest rate is 7.0%, at what
price should the bonds sell?
a. $838.07
b. $859.56
c. $881.60
d. $903.64
48. Adams Enterprises' noncallable bonds currently sell for $1,120.
They have a 15-year maturity, an annual coupon of $85, and a par
value of $1,000. What is their yield to maturity?
a. 5.84%
b. 6.47%
c. 6.81%
d. 7.17%
yield 12%. What is the approximate market value of the bond?
a. $597
b. $205
c. $275
d. $482
46. Morin Company's bonds mature in 8 years, have a par value of
$1,000, and make an annual coupon interest payment of $65. The
market requires an interest rate of 8.2% on these bonds. What is
the
a. $903.04
b. $925.62
c. $948.76
d. $996.79
47. Ryngaert Inc. recently issued noncallable bonds that mature in
15 years. They have a par value of $1,000 and an annual coupon
of 5.7%. If the current market interest rate is 7.0%, at what
price should the bonds sell?
a. $838.07
b. $859.56
c. $881.60
d. $903.64
48. Adams Enterprises' noncallable bonds currently sell for $1,120.
They have a 15-year maturity, an annual coupon of $85, and a par
value of $1,000. What is their yield to maturity?
a. 5.84%
b. 6.47%
c. 6.81%
d. 7.17%
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