# 1The market price of a semi-annual pay bond is $983.24.It has 15.00 years to maturity and a coupon rate of5.00%. Par value is $1,000. What is the yield tomaturity?SubmitAnswer format: Percentage Round to: 4 decimal places(Example: 9.2434%, % sign required. Will acceptdecimal format rounded to 6 decimal places (ex:0.092434))unanswerednot_submittedAttempts Remaining: Infinity#2Assume a par value of $1,000. Caspian Sea plans toissue a 11.00 year, semi-annual pay bond that has acoupon rate of 8.11%. If the yield to maturity for thebond is 7.79%, what will the price of the bond be?SubmitAnswer format: Currency: Round to: 2 decimal places.unanswerednot_submittedAttempts Remaining: Infinity

Dear student, as per Bartleby answering guidelines we can answer only the first question if the…

Answered: maturity? Submit Answer format:…

maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

# 1
The market price of a semi-annual pay bond is $983.24.
It has 15.00 years to maturity and a coupon rate of
5.00%. Par value is $1,000. What is the yield to
maturity?
Submit
Answer format: Percentage Round to: 4 decimal places
(Example: 9.2434%, % sign required. Will accept
decimal format rounded to 6 decimal places (ex:
0.092434))
unanswered
not_submitted
Attempts Remaining: Infinity
#2
Assume a par value of $1,000. Caspian Sea plans to
issue a 11.00 year, semi-annual pay bond that has a
coupon rate of 8.11%. If the yield to maturity for the
bond is 7.79%, what will the price of the bond be?
Submit
Answer format: Currency: Round to: 2 decimal places.
unanswered
not_submitted
Attempts Remaining: Infinity

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