Bond valuation-Semiannual interest Find the value of a bond maturing in 4 years, with a $1,000 parvalue and a coupon interest rate of 12% (6% paid semiannually) if the required return on similar-risk bondsis 17% annual interest (8.5% paid semiannually).The present value of the bond is $(Round to the nearest cent.)

To find the bond's present value, we need to calculate the present value of the bond's coupon…

Answered: Bond valuation-Semiannual interest Find…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...

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Bond valuation—Semiannual interest Find the value of a bond maturing in 5 years, with a $1,000 par value and a coupon interest rate of 11%(5.5% paid semiannually) if the required return on similar-risk bonds is 16% annual interest (8% paid semiannually). The present value of the bond is $________
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Bond valuation—Annual interest Calculate the value of the bond shown in the following table, assuming it pays interest annually. Par Value: $500 Coupon interest rate: 8% Years to maturity: 19 Required return: 12% The value of the bond is: $(enter your response here) (round to the nearest cent)
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the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 • Term to maturity: 8 years a. What will the holder receive when the bond matures? |-Select- b. If the current rate of interest on comparable debt is 7 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Would you expect the firm to call this bond? Why? -Select- v, since the bond is selling for a-Select- v. c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eight years if the funds earn 7 percent annually and there is $80 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar.
Bond valuation
Question: Bond Price: $2000 Yearly Coupon Payment: 8% Years to Maturity: 10 Years Bond is sold at the end of 3rd year. Inflation in 3rd Year: 2% Forecasted required return: 4% What is the real return of the bond over the 3 year?
Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 6% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 5.5%. What is the price of the bonds? Round your answer to the nearest cent. $

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