(Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 11 percent, and the investor's required rate of return is 14 percent The value of the bond is S828.27 (Round to the nearest cent. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1.000 face value. The annual coupon interest rate is 5 percent, and the investor's required rate of return is 7 percent The value of the bond is (Round to the nearest cent.) (Bond valuation) At the beginning of the year, you bought a $1,000 par value corporate bond with an annual coupon rate of 6 percent and a maturity date of 10 years. When you bought the bond, it had an expected yield to maturity of 8 percent. Today the bond sells for $1,080. a. What did you pay for the bond? b. If you sold the bond at the end of the year, what would be your one-period retum on the investment? Assume that you did not receive any interest payment during the holding period. a. The price you paid for the bond is S (Round to the nearest cent.) Problem 7-8 (similar to) Question Help (Bond valuation) ExxonMobil 16-year bonds pay 11 percent interest annually on a $1,000 par value. If the bonds sell at $950, what is the bonds' expected rate of return? The bonds expected rate of return is%. (Round to two decimal places.) Problem 7-12 (similar to) Question Help (Bond valuation zero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1.000 at maturity. 5 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 6 percent, compounded annually. At what price should the Latham Corporation sell these bonds? The price of the Latham Corporation bonds should be S (Round to the nearest cent.) (Bond valuation) Xerox issued bonds that pay $67.50 in interest each year and will mature in 5 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a return of 5 percent on your investment. What is the value of the bond to you, first assuming that the interest is paid annually and then semiannually? a. If the interest is paid semiannually, the value of the bond is S (Round to the nearest cent.) Bookmatch 7-19 (book/static) Question Help (Expected rate of return and current yield) Time Warner has bonds that are selling for $1,271. The coupon interest rate on the bonds is 9.15 percent and they mature in 21 years. What is the yield to maturity on the bonds? What is the current yield? a. The yield to maturity on the bond is6 (Round to two decimal places.) Bookmatch 7-20 (book/static) Question Help (Expected rate of return and current yield) Citigroup issued bonds that pay a coupon interest rate of 5.5 percent. The bonds mature in 5 years. They are selling for $1.078. What would be your expected rate of return (yield to maturity) if you bought the bonds? What would the current yield be? a. Your expected rate of return would be 6. (Round to two decimal places.)
