不 Bond valuation-Semiannual interest Find the value of a bond maturing in 9 years, with a $1,000 par value and a coupon interest rate of 8% (4% paid semiannually) if the required return on similar-risk bonds is 17% annual interest. The present value of the bond is $ (Round to the nearest cent.)

Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both bonds pay 100 annual interest plus 1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year. a. What will be the value of each of these bonds when the going rate of interest is (1) 5%, (2) 8%, and (3) 12%? Assume that there is only one more interest payment to be made on Bond S. b. Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1 year)?

Yield to Maturity and Yield to Call Arnot International’s bonds have a current market price of $1,200. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price = $1,090). What is the yield to maturity? What is the yield to call if they are called in 5 years? Which yield might investors expect to earn on these bonds, and why? The bond’s indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?

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

Bond valuation-Semiannual interest Find the value of a bond maturing in 4 years, with a $1,000 par value and a coupon interest rate of 12% (6% paid semiannually) if the required return on similar-risk bonds is 17% annual interest (8.5% paid semiannually). The present value of the bond is $ (Round to the nearest cent.)

Bond valuation—Semiannual interest Find the value of a bond maturing in 5 ​years, with a ​$1,000 par value and a coupon interest rate of 11​%​(5.5​% paid​ semiannually) if the required return on​ similar-risk bonds is 16​% annual interest (8% paid​ semiannually).   The present value of the bond is ​$________

Bond valuation—Semiannual interest   Find the value of a bond maturing in 6 ​years, with a ​$1,000 par value and a coupon interest rate of 14​% ​(7​% paid​ semiannually) if the required return on​ similar-risk bonds is 13​% annual interest (6.5% paid​ semiannually).

Bond valuation: Semiannual interest Find the value of a bond maturing in 6 years, with a $1,000 par value and a coupon rate of 10% (5% paid semiannually) if the required return on similar-risk bonds is 14% per year (7% paid semiannually

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.

K 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)