Purchase Solution

Bond Price and Analyst Values

Not what you're looking for?

Ask Custom Question

An analyst values a newly issued, 15-year, 9 percent annual coupon bond at par as of April 1, 2000. On April 1, 2008, the market prices the bond to yield 8.3 percent. What is the price of the bond on April 1, 2008?

Purchase this Solution
Solution Summary

This solution is comprised of a detailed explanation to answer what is the price of the bond on April 1, 2008.

Solution Preview

An analyst values a newly issued, 15-year, 9 percent annual coupon bond at par as of April 1, 2000. On April 1, 2008, the market prices the bond to yield 8.3 ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Bonds- Price, YTM, Duration

    You have the following set of US Treasury bond data and consultations with your Banks Equity Analyst and Debt Analyst suggest that a Z-spread for Abacus of 200 bps over Treasuries and a coupon rate of 6.5% should be appropriate to attract investors.

  • Interest Rates, YTM, Options, Stocks, Bonds

    If interest rates in the economy rise after a bond has been issued, what will happen to the bond's price and to its YTM? When interest rates rise, the price of the bond decreases and the YTM increases.

  • Bond Conversion

    If the price of a convertible bond is less than its straight value, then it offers a better return that a straight bond and so investors would bid the price up.

  • Future & Present Values (401k account, Electo Corporation)

    Now, enter N = 30 and press CPT and then FV. Therefore, your account will grow to $453,132.84. 3. Investor Harry owns a 5 year $1,000 bond with a 5% coupon that pays interest once per year.

  • Stocks and Bonds

    An analyst values a newly issued, 10-year, 9 percent annual coupon bond at par as of April 1, 2000. On April 1, 2003, the market prices the bond to yield 8.3 percent. What is the price of the bond on April 1, 2003?

  • Investing in Bonds

    17934 Investing in Bonds The price of an annual paid 7% coupon bond with a 30-year maturity = $867.42 The price of an annual paid 6.5% coupon bond with a 20-year maturity = $879.50 It is forecasted that in 5 years, 25-year maturity bonds will sell

  • Earning a return; price of bond; estimated per-share price

    390270 Earning a return; price of bond; estimated per-share price 1) As an investment analyst, you are typing to determine the probability of different returns on Omega Corporation's common stock.

  • Holtz Corporation: Price of bonds, rate of return, expected return

    Compute the price of the bonds. 2. A bond with 5 years to maturity and a coupon rate of 6% has a par or face value of $20,000. Interest is paid annually. if you required a return of 8% on this bond 3.

  • Calculating cost of capital

    The analyst expects that shares will pay a dividend of $2.00 next year, and that dividends will grow at 6.00%. The company faces a tax rate of 40%.

View More Related Solutions