None What is the present value of a$1,000 bond that pays an annualcoupon payment of $90 at the endof each of the next four years andthen matures at the end of year 4?Assume the market rate of interestis 8%.

The present value of the $1,000 bond, given a coupon payment of $90 per year for the next four years…

Answered: What is the present value of a $1,000…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 5MC

See similar textbooks

Similar questions

What is the present value of a 10-year bond outstanding with 8 years left in “year-to-maturity,” 6% annual required rate, and 4% annual payment rate?
Please give me correct answer
What is the present value of a 10-year bond that has 4 years left-to-maturity (N), 7% annual required rate (I/Y) and 8% annual payment (PMT)? (Note: assume future value, FV, is $1000).
A 10-year bond, with a par value equaling $1,000, pays 7% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis. PRESENT YOUR ANSWER ROUNDED WITH ZERO DECIMAL PLACES Respuesta:
If a If a bond pays $90 interest annually, matures after ten years and costs $1,100. What is the current Yield.
What is the present worth of a $10000 bond that has an interest of 20% per year payable semiannually? The bond matures in 5 years. The interest rate in the marketplace is 9.64547563378% per year, compounded quarterly.
What is the approximate yield to maturity for a $1,000 par value bond selling for $1,120 that matures in 6 years and pays 12 percent interest semiannually?
A bond that matures in 6 years has a par value of $1,000, an annualcoupon payment of $80, and a market interest rate of 9%. What isits price? ($955.14)
Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is the promise yield to maturity?
What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell?
Assume that a bond makes 30 equal annual payments of \$1,000$1,000 starting one year from today. (This security is sometimes referred to as an amortizing bond.) If the discount rate is 3.5\%3.5% per annum, what is the current price of the bond?
What is the present value of a $1,000 bond provide answer accounting questions

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

What is the present value of a $1,000 bond that pays an annual coupon payment of $90 at the end of each of the next four years and then matures at the end of year 4? Assume the market rate of interest is 8%.