Marathon Sports has issued a 10 year bond.The face value of the bond is 1.000 €. Thebond pays an annual coupon of 3%. Thecurrent market interest rate is flat at 4%.Please, find the price for the bond.a.675.6 $b.1,000 $c.918.9$d.1,085 $

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Answered: Marathon Sports has issued a 10 year…

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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Whittier Inc. offers you a $1,000 bond with 5 years to maturity, annual payments. Assume that the interest rate is 8%, and coupon rate is 10%. How much should you pay for this bond (rounded to integer)? O $1,080.00 O $1,008.00 O $1,000.00 O $1,076.00
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The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%.
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Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,075. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.) Part 2 b. You ▼ should should not purchase the bonds because your yield to maturity on the Saleemi bonds is ▼ greater less than the one on a comparable risk bond. (Select from the drop-down menus.)
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9.5% and that the coupon payments are to be made semiannually How much will each semiannual coupon payment be? O A. $190.00 O B. $142.50 O C. $47.50 O D. $95.00
You purchase a 3 - year corporate bond, which has a coupon rate of 8%, paid annually. Its par value is $ 1,000. If the YTM is 6%, what is the duration of the bond? A. 2.83 years B. 2.92 years C. 2.67 years D. 2.79 years
Please use finance calculator An issue of bonds with par of $1,000 matures in 8 years and pays 9% p.a. interestsemi-annually. The market price of the bonds is $955 and your required rate of returnis 8%.(a) Calculate the bonds expected rate of return.(b) Calculate the value of the bond to you, given your required rate of return.(c) Should you purchase the bond? (State the reason for your decision.)
(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 11 years until maturity. You can purchase the bond for $945. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 14 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.)
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Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $930 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? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds?
ABC Corporation issued a bond that pays coupons semiannually. It has a 15-year maturity, and the coupon rate is 8 percent. The face value is $1,000. The bond is selling to yield 8 percent. What is the current price of the bond? a. $1,015 b. $980 c. $1,000 d. $992

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Marathon Sports has issued a 10 year bond. The face value of the bond is 1.000 €. The bond pays an annual coupon of 3%. The current market interest rate is flat at 4%. Please, find the price for the bond. a.675.6 $ b.1,000 $ c.918.9$ d.1,085 $