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Bond Valuation

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Bond Valuation A1. (Bond Valuation) A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9 %. The bond’s coupon rate is 7.4%. What is the fair value of this bond? A2.(Bond valuation) find the missing information for each of the following bonds. The coupons are paid in semi annual instalments, so the number is equal to twice the bonds life in year. The coupons are paid in semi annual instalments, so the number of payments is equal to twice the bond’s life years. The YTM is compounded semi annually. BOND N(YEARS) YIELD TO MATURITY PRESENT VALUE COUPAN RATE FACE VALUE 1 8 10.2% — 8.0% $1,000 2 7 8.0% — 9.0% $1,000 3 15 9.5% — 7.5% $1,000 4 20 – $1,075.00 8.5% $1,000 5 — 7.0% $963.80 6.49% $1,000 6 13 7.8% $1,140.60 —– $1,000 A3. (Bond valuation) General Electric made a coupon yesterday on its 6.75% bonds that mature in 8.5 years. If the required return on these bonds is 8% APR, what should be the market price of these bonds? A4. (Bond valuation) RCA made a coupon payment yesterday on its 6.25% bonds that mature in 11.5 years. If the required return on these bonds is 9.2 % nominal annual, what should be the market price of these bonds? A5.(yield to maturity) new jersey lighting has a 7% coupon bond maturing in 17 years. The current market price of the bond is $975. What is the bond’s yield to maturity? A6. (yield to maturity) Marstel industries has 9.2% bond maturing in 15 years. What is the yield to maturity if the current market piece of the bond is: a. $1,120?, b$1,000?, c.$785? A7. (yield to maturity) kraft’s 5.75% coupon bond that matures in five years is selling for 98? Accounts Assignment Help, Accounts Homework help, Accounts Study Help, Accounts Course Help

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