4. A five-year bond has a $10,000 par value and pays semi-annual coupons of $1,000. The bond's yield-to-maturity is 8%.

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

4. A five-year bond has a $10,000 par value and pays semi-annual coupons of $1,000. The bond's yield-to-maturity is 8%.

Post by answerhappygod »

4 A Five Year Bond Has A 10 000 Par Value And Pays Semi Annual Coupons Of 1 000 The Bond S Yield To Maturity Is 8 1
4 A Five Year Bond Has A 10 000 Par Value And Pays Semi Annual Coupons Of 1 000 The Bond S Yield To Maturity Is 8 1 (32.84 KiB) Viewed 47 times
Please post answer with excel functions for work. Thank you!
4. A five-year bond has a $10,000 par value and pays semi-annual coupons of $1,000. The bond's yield-to-maturity is 8%. 1 (a) How much would you be prepared to pay for the bond? (b) What should the price of the bond be one year from now? (c) If all happens as expected, what rate of return would an investor expect if they buy the bond today and sell it in one year?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”