Consider a federal government coupon bond

Assignment Help Financial Accounting

Reference no: EM13825962

Consider a Federal Government coupon bond with a $1,000 face value and a coupon rate of 1%. If the bond matures in 25 years, pays semi-annual coupons, and the yield to maturity is 5%, then what will the bond sell for?

Reference no: EM13825962

Questions Cloud

Calculation of discount rate for cash flows : What is the future value at year 3 of the following set of cash flows if the appropriate discount rate is 11%?

Essay about the entrepreneurship of olay : The problem related to Management and it's an essay about the entrepreneurship of Olay. Olay's history says that it sought an chance in the skincare market and succeeded in becoming one of the best skincare products worldwide

Total bond value does the repayment of principal represent : Barry’s Steroids Company has $1,000 par value bonds outstanding at 14 percent interest. The bonds will mature in 40 years. If the percent yield to maturity is 12 percent, what percent of the total bond value does the repayment of principal represent?

Consider a federal government coupon bond : Consider a Federal Government coupon bond with a $1,000 face value and a coupon rate of 1%. If the bond matures in 25 years, pays semi-annual coupons, and the yield to maturity is 5%, then what will the bond sell for?

Annual coupon rate and yield to maturity : A 11 year bond pays interest of $27.30 semi annually, has a face value of $1,000 and is selling for $725.64. What are its annual coupon rate and yield to maturity? The annual coupon rate is xxxx %.

Supporting infants parents during resuscitation period : Supporting Infant's Parents during Resuscitation Period

How the quantity expansion of euro money would change : Analyse how the quantity expansion of euro money is likely to affect money supply, interest rate, investment and consumption, and economic growth in the EU. Draw a relevant graph for your analysis.

How many years are there until the bond matures : Beam Inc. bonds are trading today for a price of $1,527.14. The bond pays annual coupons with a coupon rate of 9% and the next coupon is due in one year. The bond has a yield to maturity of 3.23%. How many years are there until the bond matures? The ..

User Account

All Pages