Question
1) Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 13
1)Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 11 percent.
what is the value of the bond ? (Round to the nearest cent.)
2) A bond that matures in 16 years has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 17 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
what is the value of this bond if it paid interest annually would be ? (Round to the nearest cent
3) Pybus, Inc. is considering issuing bonds that will mature in 20 years with an annual coupon rate of 6 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 11 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 12 percent. What will be the price of these bonds if they receive either an A or a AA rating?
what is the price of the Pybus bonds if they receive a AA rating will be?
4)Fingen's 15-year, $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $940 and the market's required yield to maturity on a comparable-risk bond is 17 percent.
a.Compute the bond's yield to maturity.
b.Determine the value of the bond to you, given your required rate of return.
c.Should you purchase the bond?
Part 1
a.What is your yield to maturity on the Fingen bonds given the market price of the bonds?
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