A bond has an 8% coupon rate and a $1,000 face value. Coupon is semi-annually and the bond has 8 years to maturity. If investors require a 9% yield, what is the bond's value?

answer

watching

266

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Bunny GreenfelderLv2

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

A bond is selling for $917.76. It has an annual coupon payment of 3.5% of its $1,000 par value and matures in 17 years. Compute:

a. The bond's yield to maturity

b. the bond's current yield and capital gains yield.

c. The bond's nominal yield to maturity if the coupon payment is made semiannually.

d. The bond's effective yield to maturity of the coupon payment is made semi-annually.

Plese use excel for calculations and explanation.

greensheep525

A bond is sold for its face value of $1,000 with a 25-year maturity, a 9% coupon, and interest paid semiannually. The bond is callable 5 years from issuance at an 11% premium over face value. What is the bond's yield to call today if investors expect the bond to be called?

What is the price of a bond that has a yield to maturity of 10%, a $1,000 par value, 9 years to maturity, and a coupon rate of 8%, paid semi annually? Thank you!

coralscorpion758

Weekly leaderboard

Home

Homework Help 3,900,000

Finance 370,000