Explore BrainMass

Explore BrainMass

    Bond values

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:09 am ad1c9bdddf
    https://brainmass.com/business/finance/value-yield-maturity-par-value-bonds-321782

    Solution Summary

    Bond values are determined.

    $2.19

    ADVERTISEMENT