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    What is the bond's price if comparable debt yields 12%? What is the current yields and yields to maturity?

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    1. A bond has the following terms:
    Principal amount $1,000
    Semi-annual interest $50
    Maturity 10 years

    A. What is the bond's price if comparable debt yields 12%?
    B. What is the current yields and yields to maturity?
    C. What would be the bond's price if interest rates declined to 8%
    D. What two generalizations may be drawn from the above price changes? In other words,
    Explain the relationship in the above example between interest rates (at 12% vs 8%)
    And the price of the bond.

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    https://brainmass.com/business/finance/bonds-price-comparable-debt-yields-54228

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    1. A bond has the following terms:
    Principal amount $1,000
    Semi-annual interest $50
    Maturity 10 years

    A. What is the bond's price if comparable debt yields 12%?
    FV = 1000
    Payment per period = 50
    Number of periods = 10*2 = 20
    Return rate = 12%
    Then use a financial calculator or EXCEL "=PV" commend, we can compute
    Present value = 477.14, which is the bond's ...

    Solution Summary

    The expert determines bond prices if comparable debt yields.

    $2.19

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