Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company’s bonds have a 15-year maturity, a 6%

A company’s bonds have a 15-year maturity, a 6% coupon rate paid semi-annually, and a par value...

80.2K

Verified Solution

Question

Finance

Acompany’s bonds have a 15-year maturity, a 6% coupon rate paidsemi-annually, and a par value of $1000. The nominal yield isquoted as 6% in the financial press. What is the bond’sprice?

Answer & Explanation Solved by verified expert
4.3 Ratings (637 Votes)
Price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Face Value of the bond 1000 Semiannual Coupon Amount 30 1000 x 600 x Semiannual    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Acompany’s bonds have a 15-year maturity, a 6% coupon rate paidsemi-annually, and a par value of $1000. The nominal yield isquoted as 6% in the financial press. What is the bond’sprice?

Other questions asked by students

Q

4. How to use the three monetary policies and the three fiscal policies to reduce BOP...

Economics
Q

Duchenne muscular dystrophy is a sex-linked recessive trait like other sex-linkedrecessive traits such as Hemophilia...

Biology
Q

plate O the loop must be cooled after sterilization O work within the cone of...

Biology
Q

Problem 2 Imagine a rod with length TR and uniformly distributed charge bent into a...

Physics
Q

12 Using your reference triangle from above evaluate tan con with co w two A...

Geometry
Q

A paragraph written in English contains 258 words At least how many words in this...

Basic Math
Q

Zachary earns $8.00 per hour. He get paid time and a half for any hours...

Basic Math
Q

Draw a complete graph so that it has symmetry with respect to the origin 2x...

Algebra
Q

How do accrued but unpaid expenses affect the balance sheet? How does accrued but uncollected...

Accounting
Q

Ted (70) was widowed 15 years ago and has not remarried. His granddaughter, Gigi (15),...

Accounting
Q

urgent On December 31, 2023. University Security Inc. showed...

Accounting
Q

Exercise M-16 (Part Level Submission) Crede Inc. has two divisions. Division A makes and sells...

Accounting