Bond valuation - Quarterly interest Calculate the value of a $1,000-par-value bond paying quarterly interest at an annual coupon interest rate of 11% and having 13 years until maturity if the required return on similar-risk bonds is currently a 15% annual rate The present value of the bond is $ 772.65 (Round to the nearest cent.)

Bond valuation - Quarterly interest Calculate the value of a $1,000-par-value bond paying quarterly interest at an annual coupon interest rate of 11% and having 13 years until maturity if the required return on similar-risk bonds is currently a 15% annual rate The present value of the bond is $ 772.65 (Round to the nearest cent.)

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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Similar questions

Find the value of a bond maturing in 4 years, with a $1,000 par value and a coupon interest rate of 9% (4.5% paid semiannually) if the required return on similar-risk bonds is 17% annual interest (8.5% paid semiannually).
15 year bond have an annual coupon interest of 9% make interest payment on a semi-annual basis and have $1,000 par value if the bonds are trading with a market required yield to maturity of 17% are these premium for discount bonds? What is the price of the bonds?
Christopher now has $500. How much would he have after 7 years if he leaves it invested at 5.3% with annual compounding?
Bond valuation - Quarterly interest Calculate the value of a $1,000-par-value bond paying quarterly interest at an annual coupon interest rate of 12% and having 11 years until maturity if the required return on similar-risk bonds is currently a 16% annual rate.
Find the interest payment for the following bond (par value for each is $1,000, semi-annual payments): a zero-coupon bond maturing in 10 years? (format answer as $1,234.56 there are zero cents such as $1,234.00)
Bond Valuation with Annual Payments Jackson Corporation's bonds have 15 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 11%. The bonds have a yield to maturity of 12%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent.
A $180000 issue of eleven year bonds redeemable at par offers 7.02% coupons payable semi annually. What is premium or discount and the purchase price of bonds to yield 5.6% compunded annually?
wo 30-year maturity mortgage-backed bonds are issued. The first bond has a par value of $10,000 and promises to pay a 7.5 percent annual coupon, while the second is a zero coupon bond that promises to pay $10,000 (par) after 30 years, with interest accruing at 7.0 percent. At issue, bond market investors require a 9.0 percent interest rate on both bonds. Required: a. What is the initial price on each bond? b. Now assume that both bonds promise interest at 7.5 percent, compounded semiannually. What will be the initial price for each bond? c. If market interest rates fall to 6.5 percent at the end of the fifth year, what will be the value of each bond, assuming annual payments as in (a) (state both as a percentage of par value and actual dollar value)?
ond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 6% coupon rate, payable semiannually. The bonds mature in 13 years, have a face value of $1,000, and a yield to maturity of 5.5%. What is the price of the bonds? Round your answer to the nearest cent. $
Bond valuation-Semiannual interest Find the value of a bond maturing in 5 years, with a $1,000 par value and a coupon interest rate of 11% (5.5% paid semiannually) if the required return on similar-risk bonds is 18% annual interest. The present value of the bond is $ (Round to the nearest cent.) C
Face value=$1000 Annual coupon payment=$60 (First payment due in 1 year) Internal yield to maturity = 7% Term= 3 years Compute the Macaulay duration of the bond.
A 3-year bond carrying 3.4% annual coupon and $100-par is putable at par 1 year and 2 years from today. Calculate the value of the putable bond under the forward rate curve below. 1-year spot rate: 1.9%; 1-year spot rate 1 year from now: 2.8%; 1-year spot rate 2 years from now: 3.7%. Assume annual compounding. Round your answer to 2 decimal places (nearest cent).

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