A 17-year bond pays interest of $45 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 7.82 percent. Given this information, determine the current price of this bond. O $1,103.15 O $1.095.23 $1.080.83 O $1,109.94 O $1.087.79

A 17-year bond pays interest of $45 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 7.82 percent. Given this information, determine the current price of this bond. O $1,103.15 O $1.095.23 $1.080.83 O $1,109.94 O $1.087.79

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

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Assume that a 10-year bond pays interest of $55 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12.34 percent. Given this information, determine the expected total dollar price appreciation for this bond if you buy it today, hold it for 2 ½ years, and interest rates go down to 11.47 percent by the time you sell the bond. Answer choices: $39.56 $45.80 $59.51 $36.69 $52.57 Please answer fast I give you upvote
a 29000 bond with interest at 5.1% payable semi annually and redeemable ar par is bought two years before maturity to yield 7.8% compunded semi annually. complete the premium or discount and the purchase price and construct the appropriate bond schedule
The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to maturity on a comparable-risk bond is 5 percent. The current market price for the bond is $1,080. A. Determine the yield to maturity. B. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? C. Should you purchase the bond at the current market price ? A. What is your yield to maturity on the Vail bonds given the current market price of the bonds? Round to two decimal places
Determine the price of a $1.9 million bond issue under each of the following independent assumptions: Maturity 10 years, interest paid annually, stated rate 6%, effective (market) rate 9%. Maturity 10 years, interest paid semiannually, stated rate 6%, effective (market) rate 9%. Maturity 10 years, interest paid semiannually, stated rate 9%, effective (market) rate 6%. Maturity 20 years, interest paid semiannually, stated rate 9%, effective (market) rate 6%. Maturity 20 years, interest paid semiannually, stated rate 9%, effective (market) rate 9%.
Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 16-year,1000 $ par value bonds pay 13 percent interest annually. The market price of the bonds is $1070 and the market's required yield to maturity on a comparable-risk bond is 14 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? % (Round to two decimal places.)
A $27,000 bond with interest at 5.3% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.6% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.
the 15-year $1,000 par bonds of Vail Inc. pay 15 percent interest. The market's required yield to maturity on a comparable - risk bond is 18 percent. The current market price for the bond is $910. a. determine the yield to maturity b. what is the value of the bonds to you given the yield to maturity on a comparable - risk bond? c. should you purchase the bond at the current market price?
A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of each of the next 20 years. If similar bonds are currently yielding 7%, what is the market value of the bond? Select one:cannot be determined from the information givenexactly $1,000under $1,000over $1,000
on Assume that you purchase a 30-year stripped bond with a $100,000 face value. The current bond price is $9,937.73 and the yield is 8%. Calculate the interest revenue during the first year of holding the bond. Calculate amounts to nearest dollar, no $. Answer:
The 12-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market's required yield to maturity on a comparable-risk bond is 12 percent. The current market price for the bond is $850. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price? Question content area bottom Part 1 a. What is your yield to maturity on the Vail bonds given the current market price of the bonds? enter your response here% (Round to two decimal places.)
The market price is $850for a 16-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity? Part 1 The bond's yield to maturity is _________%. (Round to two decimal places.)
Determine the price of a $1.3 million bond issue under each of the following independent assumptions: 1. Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. 2. Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10%. 3. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 4. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 5. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%. Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1.) Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 Required 4 Required 5 Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. Note: Round your answer to the nearest whole dollar. Price of bonds Required 2 > Next

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