Purchase Solution

1. Bond. What is the value of a $1,000 par value bond with a

Not what you're looking for?

Ask Custom Question

Determine the value of bonds paying annual and semiannual interest payments, and determine the yield to maturity of bonds paying annual and semiannual interest payments. You must submit your backup in Excel or other supporting documentation showing how answers were reached.

1. Bond. What is the value of a $1,000 par value bond with annual payments of an
a. 11% coupon with a maturity of 20 years and a 15% required return?
b. 12% coupon with a maturity of 10 years and a 7% required return?
c. 8% semiannual coupon with a maturity of 10 years and a 11% required return?
d. 8% semiannual coupon with a maturity of 20 years and a 6% required return?

2. Bond. What is the yield to maturity of a $1000 par value bond with an
a. 10% semiannual coupon and 20 years to maturity and a $1,000 price?
b. 6.5% semiannual coupon and 13 years to maturity and a $890 price?
c. 7.5% annual coupon and 19 years to maturity and a $788 price?
d. 4.5% annual coupon and 7 years to maturity and a $800 price?

Purchase this Solution
Solution Summary

1. Bond. What is the value of a $1,000 par value bond with annual payments of an
a. 11% coupon with a maturity of 20 years and a 15% required return?
b. 12% coupon with a maturity of 10 years and a 7% required return?
c. 8% semiannual coupon with a maturity of 10 years and a 11% required return?
d. 8% semiannual coupon with a maturity of 20 years and a 6% required return?

2. Bond. What is the yield to maturity of a $1000 par value bond with an
a. 10% semiannual coupon and 20 years to maturity and a $1,000 price?
b. 6.5% semiannual coupon and 13 years to maturity and a $890 price?
c. 7.5% annual coupon and 19 years to maturity and a $788 price?
d. 4.5% annual coupon and 7 years to maturity and a $800 price?

Solution Preview

Determine the value of bonds paying annual and semiannual interest payments, and determine the yield to maturity of bonds paying annual and semiannual interest payments. You must submit your backup in Excel or other supporting documentation showing how answers were ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Bonds:YTM, YTC, PV, value, current yield, capital gain yield

    If the bond can be call by its issuer in 4 years at a 3% premium over par, what is its yield to call? 4. Bond PV 2 A coupon bond with semi-annual payments has a par value of $1,000 and a coupon rate of 11.20%. The bond matures in 14.5 years.

  • Bond Valuation

    If a bond is sold at a premium, the bond price will be higher than the par value, and if a bond is sold at its face amount, then its price will be at par value. Bond A is sold at a premium while Bond B is sold at a discount. c.

  • Describing the Features of the Bond

    What is the amount of the call premium on a $1,000 par value bond?

  • Bond Prices

    What is the present value of the bond?

  • Question about Zero-Coupon Bond

    Zero-coupon rate bond A 20-year, $1,000 par value zero-coupon rate bond is to be issued to yield 11 percent a. What should be the initial price of the bond?

  • Bond Yield to Maturity - Debt Financing

    Tidewater Home Health Cae, Inc. has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000.

  • Valuation models and Rates of Return (ROR) on bonds, stocks

    what is equal to the face value of the bond plus the value of all interest payments. 2) A 20-year bond pays 12% on a face value of $1,000. If similar bonds are currently yielding 9%, what is the market value of the bond? Use annual analysis.

  • Valuation of Bonds

    Valuation of Bonds 1. What is the price today of a 2-year 9% coupon bond that has a par value of $1,000 and a required rate of return of 9%?

  • Yield To Maturity of the Bond

    Calculate the yield to maturity (YTM) for each bond. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain.

View More Related Solutions