with a coupon that pays Disney issued a 30-year bond with a par value of $1,000, last year, $35 annually. At the time of issue, the bonds sold at par. Assuming semi-annual payments and a 4.125% yield to maturity, what is the current price of the arm's bonds? (Select the closest number) a. $978.59 b. $978.97 C. $978.79

with a coupon that pays Disney issued a 30-year bond with a par value of $1,000, last year, $35 annually. At the time of issue, the bonds sold at par. Assuming semi-annual payments and a 4.125% yield to maturity, what is the current price of the arm's bonds? (Select the closest number) a. $978.59 b. $978.97 C. $978.79

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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A 4,000, 8% bond with coupons payable quarterly on January 1, April 1, July 1, October 1 and will be redeemed on October 1, 1992. (Amortization of Premium) a. Find the purchase price of the bond on April 1, 1990 to yield 7% m=4. b. Construct a schedule of amortization of premium.
Gadget Co invests in a $100,000 bond with an 8% coupon rate. The market rate of interest is 10% annually and it is a 5 year bond 1. Assuming the company invests on January 1st and only pays $92,418 for this bond, what is the journal entry on January 1st? 2. Prepare a full amortization table for this bond: Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Cash Received Interest Revenue Amortized Value Carrying Value stess Questions 3 and 4 on the next tab +
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Assume all bonds have a face value or par value of 1,000
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