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....


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.


             Round your answer to the nearest tenth.


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?


            Round your answer to the nearest tenth.



Jun 03, 2022
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