# 1. Bond. What is the value of a \$1,000 par value bond with annual payments of an - 45676

Solution Posted by

## hardik777

Rating : (454)A+
Solution Detail
Price: \$10.00
• From: Finance,
• Posted on: Thu 06 Mar, 2014
• Request id: None
• Purchased: 0 time(s)
• Average Rating: No rating
Request Description

SUO FIN2030 (****** Both sum Calculated In Excel with formula) + Extra work Sheet + 100% correct + as Discussed ******)

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?

SUO FIN2030 FIN/2030 FIN 2030

FIN2030

Solution Description

Attachments