Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. joseph's company has just issued a 20-year, 9 perc

Joseph's Company has just issued a 20-year, 9 percent coupon rate, $1,000-par bond that pays interest semiannually....

90.2K

Verified Solution

Question

Finance

Joseph's Company has just issued a20-year, 9 percent coupon rate, $1,000-par bond that pays interestsemiannually. Two years later, if the going rateof interest on the bond falls to 8 percent, what is the value ofthe bond?

           a.         $1,225.62

           b.         $1,135.90

           c.         $1,094.54

           d.         $1,116.52

           e.         $1,012.38

Answer & Explanation Solved by verified expert
4.2 Ratings (577 Votes)
Current Value of the Bond The Current Value 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    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

Joseph's Company has just issued a20-year, 9 percent coupon rate, $1,000-par bond that pays interestsemiannually. Two years later, if the going rateof interest on the bond falls to 8 percent, what is the value ofthe bond?           a.         $1,225.62           b.         $1,135.90           c.         $1,094.54           d.         $1,116.52           e.         $1,012.38

Other questions asked by students

Q

Answer A Question 15 1 point Retake Diameter A is 20 cm and dia circumference...

Geometry
Q

In benzophenone reduction, how does H-bonding play a role in the determination of its physical state?

Chemistry
Q

what are the approaches of earnings

Accounting
Q

Consider a uniform circular disc M R having a point mass M at its circumference...

Physics
Q

31 As per this diagram a point charge q is placed at the origin O...

Physics
Q

Which of the following systems of inequalities would produce the region indicated on the graph...

Basic Math
Q

1 2 Part 0 2 3 4 57 6 7 Identify the location and value...

Calculus
Q

NUMBER SENSE Events A and B are independent Let P B 0 4 and P...

Algebra
Q

The reference angle of 215 degrees is ______ degrees.The reference angle of 320 degrees is...

Algebra
Q

Exercise 1-15 Balance sheet LO6 On July 1, 2023, Academic Learning Services entered its second...

Accounting
Q

(Operating leverage) The C. M. Quarles Distributing Company manufactures an assortment of cold air intake...

Finance
Q

Answer format Pentage Round 2 maces ( EV.24 Ninguno. WW Commar rounded to decimar places...

Finance