Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. Ifsimilar bonds in the market yield 9.4 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.)Value of bond24eTextbook and Media

Zero coupon bonds maturing in 10 years compounded semi annually will have =Number of years * 2 semi…

Answered: Ten-year zero coupon bonds issued by…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 16E

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Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 10.3 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond $
Ten - year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 9.7 percent, what is the value of these bonds?(Round answer to 2 decimal places, e. g. 15.25.)
Current Attempt in Progress Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000, and interest is compounded semiannually. If similar bonds in the market yield 10.3 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Value of bond $
Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.3 percent, what is the value of these bonds?
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Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 36. What is the yield to maturity of a $1,000 par value bond with a coupon rate of 9.95% (semi-annual couponpayments) that matures in 28 years assuming the bond is currently selling for $1183.13? (Record your answerrounded to 2 decimal places; for example, record 0.1493824 = 14.93824% as 12.94).37. Compute the yield to maturity of a $10,000 par value bond with a coupon rate of 7.5% (quarterly payments –that is, four times per year) that matures in 25 years. The bond is currently selling for $8,767.38. (Record youranswer rounded to 2 decimal places; for example, record 0.1493824 = 14.93824% as 12.94)
Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 32. The market price of a $1000 par value, semi-annual payment bond is $956.76. If this bond has 27 yearsremaining to maturity and a yield to maturity of 7.30%, what is the bond’s annual coupon rate? (Record youranswer rounded to 2 decimal places; for example, record 0.1493824 = 14.93824% as 12.94).33. The market price of a $1000 par value, quarterly (i.e., 4 times per year)v payment bond is $928.39. If thebond has 21 years to maturity and an annual coupon rate of 9.20%, what is the bond’s yield-to-maturity?(Record your answer rounded to 2 decimal places; for example, record 0.1493824 = 14.93824% as 12.94).
Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 38. Four years ago, Phutki Corp. issued a $1,000 par value, 11 percent (annual payment) coupon bond. At thetime the bond was issued it had 25 years to maturity. Currently this bond is selling for $1,000 in the bondmarket. Phutki Corp. is now planning to issue a $1,000 par value bond with a coupon rate of 9 percent (semi-annual payments) that will mature 15 years from today. Assuming that the riskiness of the new bond is thesame as the previous bond (i.e., the YTM on the new bond is equal to the current YTM on the previous bond),how much will investor's pay for this new bond?39. Consider a Zerobond (i.e., a bond that pays no coupon payment, meaning that the coupon rate on the bond is0%) with a par value of $1,000 that will mature exactly 20 years from today. The current YTM of thisZerobond is 6.7%. Five (5) years ago, the YTM of the same…
Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 34. Pennypacker Industries needs to raise $40,000,000 by issuing bonds. The company plans to issue a $1000 parvalue, 16-year semi-annual payment bond that has a coupon rate of 4.40%. The yield to maturity on the bondis expected to be 4.70%. How many bonds must Pennypacker Industries issue? Round your answer up to thenearest whole number (i.e., no decimal places); for example, enter 112,304.874 or 112,304.128 as 112305.35. Compute the price of a $5000 par value bond with a coupon rate of 7.15% (semi-annual payments) and 29years remaining to maturity. Assume that the current yield to maturity on the bond is 8.60%
The U.S. Treasury has issued 10-year zero coupon bonds with a face value of $1,000. Assume that the bond compounds interest semiannually. What will be the current market price of these bonds if the yield to maturity for similar investments in the market is 6.75 percent? $860 O $520 O $604 O $515
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Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.4 percent, what is the value of these bonds? (Round answer to 2 decimal places, e.g. 15.25.)