Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.95 percent and semiannual payments. The bond matures in 23 years, with ayield to maturity of 3.71 percent, and a par value of $5,000. What is the market price of the bond?Multiple Choice$5,184.58$5,199.39$5,192.55$5,183.51$5,288.27

SEMI ANNUAL COMPOUNDING Yield to maturity (23*2) 46 coupon amount (PMT) (5000*3.95%)/2…

Answered: Harpeth Valley Water District has a…

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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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
Please solve it in excel with Formulas explanation
Vijay
Food Bank, Inc. offers a 7.0 percent coupon bond with semiannual payments and a yield to maturity of 7.75 percent. The bonds mature in 15 years. What is the market price of a $1,000 face value bond? $937.26 $934.81 $936.60 $934.16
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 company is trying to issue a 15-year, BB-rated, semi-annual paying bond with 6% annual coupon rate. If the appropriate annual discount rate for the bond issuance is 3% and the current credit risk premium for BB-rated bond is 3.5%, what is the current market price of this bond? $952.55 $852.25 $1011.36 $1213.25
The Jupiter Dan Company has a bond outstanding that makes semiannual payments with a coupon rate of 10 percent. The bond sells for $1062.84 and matures in 10 years. The par value is $1,000. What is the yield to maturity (YTM) of the bond? O 18.59% O 8.43% 9.03% O 4.52% 18.06%
Cardoza issues bonds with a coupon rate of 7%, face value of $210,000, and maturity in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $171,360. $210,000. $195,731. $225,622.
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.)
IMS corporation bonds have a coupon rate of 12% paid annually and 15 years to maturity. If the market rate of interest is 10%, the bonds should sell for: $863.78 $1,000.00 $1,152.12 $1,726.58
A 2.70 percent coupon municipal bond has 11 years left to maturity and has a price quote of 95.55. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) Compute the bond
A 4.00 percent coupon municipal bond has 12 years left to maturity and has a price quote of 95.55. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and it has a par value of $5,000.) Compute the bond's current yield. Compute the yield to maturity. Compute the taxable equivalent yield (for an investor in the 30 percent marginal tax bracket). Compute the yield to call.

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