Kindly solved all 3 parts
Q1
a)
The market price of a 10-year bond is 979$, its yield to maturity is 8% per year, and annual coupon payments are equal to 979$. The face value of the bond is $t000. Calculate the present value of the bond.
Would you buy it?
Round your answer to the nearest tenth.
b)
Boeing recently issued bonds with a maturity of 10 years. The coupon rate is 12% but coupon payments will be paid quarterly. The par value is $1000 and the yield to maturity is equal to 8% compounded quarterly. Calculate the value of the bond today.
c)
Calculate the coupon payment of the bond that has 7 years till maturity, $1000 par value, 6% yield to maturity and it currently sells for $900?
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