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: Zin 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

Describe the historical pattern of growth of the worldwide human population since our origin. Include in...

Biology
Q

Blunderbluss Manufacturing's balance sheets report $305 million in total debt, $64 million in short-term investments, and...

Finance
Q

What is the heart's "pacemaker"?A. aortaB. veinsC. SA NodeD. arteries

Biology
Q

Heavy children: Are children heavier now than they were in the past? The National Health...

Basic Math
Q

Ninety three countries won medals at the Olympics in a particular year The results indicate...

Statistics
Q

Required: 1. Compute the equivalent units of production for materials and conversion...

Accounting
Q

Exercise 9-2 Recording known current liabilities LO C2 On July 15, Piper Co. sold...

Accounting
Q

Q#1 HASF and company is a retails hardware store information about the store operations follows...

Accounting
Q

Standard Products Company recognizes variances from standards at the earliest opportunity, and the quantity of...

Accounting
Q

Explain the difference between fixed and flexible budgets.

Accounting
Q

Informacin requerida [La siguiente informacin se aplica a las preguntas que se muestran a...

Accounting
Q

Gipple Corporation makes a product that uses a material with the quantity standard of 7.3...

Accounting