What is the price of a bond with a coupon rate

Assignment Help Finance Basics
Reference no: EM133118794

A) What is the price of a bond with a coupon rate of 8%, payable annually, a face value of $1000, 11 years to maturity, and a yield to maturity of 8.7%?

B) Consider a bond that has a price of $329.69, a current yield of 3.03%, a yield to maturity of 6%, a face value of $1000, and 28 years to maturity. What are the annual coupon payments?

C) Consider the following $1,000 face value bond which makes semi-annual coupon payments,

Bond

HSBC

Coupon rate

7%

Price

103.33

Maturity

December 1, 2030

Settlement Date

January 19, 2019

What is the total price you would pay for this bond?  Enter your answer rounded to two decimal places.

Reference no: EM133118794

Questions Cloud

State the after-tax cash from this purchase : Starting in 2021, Kevin will pay interest of $20,000 per year for 10 years. State the after-tax cash from this purchase (cover year 1 ONLY)
Track the stock price of best buy com : Track the stock price of Best Buy Com. with the fictitious investment of $1 million. Include a buy/sell recommendation. Include a review of a recent article abo
After-tax weighted average cost of capital : Pinder Co has 20,000 bonds outstanding, each with a face value of $1,000. 12,000 of the 20,000 bonds pay a semi-annual coupon of 8% p.a. with 10 years left to m
Yields on commercial paper and treasury bills : What would you expect to happen to the spread between yields on commercial paper and Treasury bills if the economy were to enter a steep recession?
What is the price of a bond with a coupon rate : A) What is the price of a bond with a coupon rate of 8%, payable annually, a face value of $1000, 11 years to maturity, and a yield to maturity of 8.7%?
What are the purposes and uses of assets : What are the purposes and uses of assets? What is the main risk of buying or borrowing capital to invest in an asset?
What is the yield to maturity on the bond today : A year later, the bond price is $1,020. Face value of the bond is $1,000. What is the yield to maturity on the bond today
Watching legal requirements for small business : Question 1 What are your most valuable takeaway after watching legal requirements for small business training course (30 minutes) offered by SBA?
Estimate cash needs for the month of september 2020 : RBC has recently offered AGC a one-year $2 million operating line of credit (LOC) at a rate of 6.25% in anticipation for year 2020. There is a monthly 0.75% com

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd