One year ago a $1000 face value 6% coupon bond was selling for $918.93. Since then, the market return decreased by two percentage points. The bond pays interest semiannually and now has four years to maturity. The bond's price today is?

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Please find the revision for AT&T bond and response for your question below.

REVISION FOR AT&T bond
Calculate the ANNUAL yield to maturity for this bond
You are considering the purchase of an AT&P bond with a 13% coupon rate. Interest is paid and compounded semiannually. The bond will mature in 8 years, and has a $1000 face value. The bond currently sells for $867. Calculate the ANNUAL yield to maturity for this bond. (Round to nearest percentage)
We need to calculate how much the bonds have been issued by using the formula as follows: -

where B is the issued price
C is the coupon payment
r is the discount or yield rate
n is the period

Because we need to find the yield to maturity, we need to replace the information given into the equation and calculate for the yield to maturity.

C, which is the annual coupon payment, can be ...

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This solution is comprised of a detailed explanation to answer the bonds price today.

(See attached file for full problem description)
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Week 4 - Problem 5
O,Meara, Inc., plans to issue $6 million of perpetual bonds.The face value of each bond is $1,000
The semi-annual coupon on the bonds is 4.5%
Market interest rates on one-year bonds are 8%

Consider three zero-coupon,$1,000 face-value bonds. Bond A matures one year from today, Bond B matures five years from today, and Bond C matures ten years from today. The current market interest rate is 11 percent per annum (effective annual yield).
a. What is the current price of each bond?
b. If the market interest rate su

Three years ago, the firm issues 300,000 30 year, zero coupon bonds. The bonds have a face value of $1,000 and originally sold for $76.45. Currently, the bonds sell for $97.61.
What is the combined Market Value of the Zero Coupon Bondstoday?
What is the Yield on the Zero Coupon Bonds. Remember = these are 30 year bonds

Grossnickle Corporation issued 20-year, non callable, 7.8% annual coupon bonds at their par value of $1,000 one year ago. Today the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?

Please help with the following problem.
A company issued $20 million of 15-year convertible bonds in October of 2003. At the time, market interest rates for straight bonds of similar quality were 6.4%. The company's convertible bonds had a coupon rate of 4% and sold for $1,120 when issued. The bond paid semi-annual interes

Scenario: Grossnickle Corporation issued a 20-year, non-callable, 6.3% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?
$1,136.58
$950.79
$1,289.58
$1,049.15

Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?

KIC, Inc., plans to issue $5 million of perpetual bonds. The face value of each bond is $1,000. The annual coupon on the bonds is 12 percent. Market interest rates on one-year bonds are 11 percent. With equal probability, the long-term market interest rate will be either 14 percent or 7 percent next year. Assume investors are ri

Bowdeen Manufacturing intends to use callable perpetual bonds. The bonds are callable at $1,250. One-year interest rates are 12%. There is a 60$ probability that long-term interest rates one year from today will be 15%. With a 40% probability, long term interest rates will be 8%. To simplify the firm's accounting, Bowdeen w

If the demand for money depends positively on real income and depends inversely on the nominal interest rate, what would happen to the price level today if the central bank announces (and people believe) that it will decrease the money growth rate in the future, but it does not change the money supply today?