EBK FOUNDATIONS OF FINANCE
EBK FOUNDATIONS OF FINANCE
10th Edition
ISBN: 9780135160473
Author: KEOWN
Publisher: PEARSON CO
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Chapter 7, Problem 4SP

(Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1,000 face value. The annual coupon interest rate is 5 percent, and the investor’s required rate of return is 7 percent.

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(Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1,000 face value. The annual coupon interest rate is 5 percent, and the investor's required rate of return is 7 percent. The value of the bond is $ (Round to the nearest cent.)
Consider a bond that has a face value of $1,000. The bond has a maturity of 25 years and pays coupons of 5.5% per annum. If the bond's required rate of return is 8.0% per annum nominal, and coupons are received semi-annually, what is the current market price of the bond?
Calculate the value of a $1,000 bond which has 10 years until maturity and pays annual interest at an annual coupon rate of 10 percent. The required return on similar-risk bonds is 12 percent.

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EBK FOUNDATIONS OF FINANCE

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What happens to my bond when interest rates rise?; Author: The Financial Pipeline;https://www.youtube.com/watch?v=6uaXlI4CLOs;License: Standard Youtube License