How many years is it until this bond matures

Assignment Help Financial Management

Reference no: EM131308042

1. Bond X has face value of $1,000, semi-annual coupon of $40, years to maturity of 10, and price of $1,179.65. Bond Y is identical to Bond X except with a semi-annual coupon of $50. What is the price for Bond Y?

$1,000.00

$1,170.60

$1,331.61

$1,388.04

2. The Lo Sun Corporation offers a 5.9 percent bond with a current market price of $816.50. The yield to maturity is 8.21 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?

25.22 years

6.56 years

13.13 years

27.68 years

26.25 years

Reference no: EM131308042

Questions Cloud

Grace decides to immunize her portfolio : Grace Hesketh is the owner of an extremely successful dress boutique in downtown Chicago. Although high fashion is Grace’s first love, she’s also interested in investments, particularly bonds and other fixed-income securities. She actively manages he..

The bond investment decisions of dave and marlene carter : Dave and Marlene Carter live in the Boston area, where Dave has a successful orthodontics practice. Dave and Marlene have built up a sizable investment portfolio and have always had a major portion of their investments in fixed-income securities. Wha..

What initial margin deposit would the investor have to make : Suppose an investor took a 3-month long position on one crude oil futures contract (each futures contract for crude oil is written for 1, 000 barrels). The futures price per barrel was $45. If the margin requirement were 5% of the value of the contra..

Assume investors require return of nine percent on stock : Gilmore, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock. What is the current price?..

How many years is it until this bond matures : Bond X has face value of $1,000, semi-annual coupon of $40, years to maturity of 10, and price of $1,179.65. Bond Y is identical to Bond X except with a semi-annual coupon of $50. What is the price for Bond Y? The Lo Sun Corporation offers a 5.9 perc..

Amortize initial fee and pay back the loan annually : In discussing the terms of a mortgage loan, I (the borrower) am offered to choose between a 5-year loan to be repaid at an interest rate of 6% with no initial fee (Proposal A), or reduce the interest rate to 5% with an initial fee of 4 points on the ..

Calculating loan payments : You want to buy a new sports coupe for $75,700, and the finance office at the dealership has quoted you a loan with an APR of 8.1 percent for 36 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan..

What is the percentage change in the bonds price : A(n) ten-year bond has a yield of 11% and a duration of 7.205 years. If the bond's yield changes by 75 basis points, what is the percentage change in the bond's price?

What will be the amount of your monthly payment : Having graduated from UCF with a degree in finance, you can now afford to buy a $120,000 house. Suppose you pay 20% as a down payment and finance the rest for 30 years at 8%. Assuming house payments occur at the end of each month, what will be the am..

User Account

All Pages