A Corporate Bonds matures in 27 years, yields 8.47% and makes coupon payments of 9%. If the par value equals $1,000, what should be the price of this corporate bond? Enter your answer to the nearest penny.

Q: Assume that you purchase a 30-year $1,000 par value bond, with a 10% coupon, and a yield of 8%.…

A: With holding period (n), the realized yield on bond is calculated as shown below.

Q: Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures…

A: Bond: It is a fixed income instrument that represents a loan made by an investor to a borrower. We…

Q: What is the expected current yield for each bond in each year? Round your answers to two decimal…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: You are considering buying a 30 year bond issued by Microsoft for $95.00. The bond has a par value…

A: Here, Current Value of Bond $      95.00Par Value of Bond $    100.00Coupon Rate7.50%Time to…

Q: A corporation has bonds that currently sell for $1,100 and have a par value of $1,000. They pay a…

A: Given Price of bond is $1,100 Par value is $1000 Annual coupon rate $100

Q: One of IBM's bond issues has an annual coupon rate of 4%, a face value of $1,000 and matures in 9…

A: Coupon Rate = c = 4%Face Value = fv = $1000Time = t = 9 Years

Q: What is the amount and frequency of dividend payments on a bond that has a face value of $10,000 and…

A: Dividend amount is calculated as follows:-Dividend amount = Face value * Coupon rate

Q: The firm has bonds outstanding that mature in five years. The par value of each bond is $1,000, the…

A: Face value of bond is $1000 Coupon rate is 5% The bond pays annual coupons for 5 years until…

Q: What is the value of a 5% coupon, annual pay bond that has 22 years remaining to maturity and a $1,…

A: A bond is a fixed-income security that offers the investor a defined set of periodic payments and…

Q: A companies corporate bond has 30 years left to maturity, a par value of $1,000, coupon rate of 7.5%…

A: Given:

Q: Listen Calculate the current price of a $1,000 par value bond that has a coupon rate of 7 percent,…

A: The objective of the question is to calculate the current price of a bond given its par value,…

Q: Bank of America has a 5%, annual coupon bond that will mature in 19 years. The interest rate for…

A: Par value = $1,000Annual coupon rate = 5%Annual coupon amount = Par value *Annual coupon rate…

Q: If you purchase a 3-year, 9% coupon bond for $950, how much could it be sold for 2 years later if…

A: Zero coupon bonds are bonds which do not pay coupons and sold at discount to face value

Q: If you purchased a ten-year corporate bond, $1,000 par value, with a 5 percent coupon, and suddenly…

A: To determine the present value, we need to use the current rate or yield to maturity (YTM) to…

Q: What is the effective yield to maturity of a $1,000 par value strip bond that sells for $255 and…

A: Effective yield to maturity in the case of strip bond is computed as follows:-Effective yield to…

Q: he nominal rate of return is ______% earned by an investor in a bond that was purchased for $906,…

A: Nominal rate of return of the bond is the sum of coupon payment and price difference in bond Nominal…

Q: A 100-year corporate bond has a coupon rate of 5% with semi - annual payments. If the current value…

A: Yield to Maturity (YTM):A financial indicator known as Yield to Maturity (YTM) evaluates the…

Q: You want to find the value of a corporate bond with an annual coupon rate of 3%, making semi-annual…

A: Par value of bond (FV) = $1000 Coupon rate = 3% Semi annual coupon amount (C) = 1000*0.03/2 = $15…

Q: At the beginning of the year, you bought a $1,000 par value corporate bond with an annual coupon…

A: Coupon = 0.08 * 1,000 = 80.Price = Coupon * [ 1-1/(1+ 0.13)^19] / 0.13 + 1,000 / (1 + 0.13)^19.= 80…

Q: A 100-year corporate bond has a coupon rate of 5% with monthly payments. If interest rates drop to…

A: Compound = Monthly = 12Time = t = 100 * 12 = 1200Coupon Rate = 5 / 12 %Interest Rate = r = 4 / 12…

Q: your company currently has $1000 ​par, 5.75% coupon bonds with 10 years to maturity and a price of…

A: Certainly! Let's calculate the coupon rate for the new 10-year coupon bonds.First, let's understand…

Q: Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to…

A: Solution:- Face value means the par value of which the bonds will be issued.

Q: Show all your work. The bonds issued by XYZ CO. currently sell for $1,020. They have a 8-year…

A: Solution:-The query concerns the bonds issued by XYZ Co. These bonds are currently priced at $1,020,…

Q: A firm sells bonds with a par value of 1000 Rupees, carry a 8% coupon rate, with a maturity period…

A: a) Interest payment you receive each year = Par value * Coupon rate

Q: The nominal rate of return is $1,000. % earned by an investor in a bond that was purchased for $904,…

A: Nominal rate of return can be calculated by using this equation Nominal rate of return =(Selling…

Q: The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in…

A: The coupon payment is the interest that the bond issuer pays to the bondholder. Since the bond pays…

Q: (a) How much should an investor pay for a $1,000 ARA Corporation bond?  (b) Discuss reasons why an…

A: Bond: It is a debt instrument issued by the company for raising debt capital.  Hence the bond holder…