What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate

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What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate (paid semiannually) and a required return of 7.5 percent if the bond is 6.48574, 8.47148, 10.519, and 14.87875 years from maturity?

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Financial Markets And Institutions

ISBN: 9781264098729

8th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Oct 19, 2022 06:40 AM

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What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate

Question:

Face Value Total Payments Periodic The Bond Coupon Required → Value Will Payment Return Be 7.5% 102.531% 7.5 103.094 7.5 103.594 7.5 104.437 100% 6.48574x2 = 12.97148 8%/2 = 4% 100 8.47148 x 2 = 16.94296 4 100 10.519x2= 21.0380 4 100 14.87875 x 2 = 29.7575 4

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Financial Markets And Institutions

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