Posted by **Teresa** on Tuesday, March 11, 2008 at 12:44pm.

A comp. has issued a bond with the following characteristics: Principal=1000, Time to maturity=20yrs. Coupon Rate=8%, compounded semiannually with semiannual payments. Calculate the value of this bond if the stated interest rate, compounded semiannually is 6%

My attempt: 1000(.08)/2 * (1-1/1.06^20) + (1000/1.06^20) = 40(11.4699) + 311.80 = 770.60

- Finance -
**bobbi**, Sunday, September 12, 2010 at 9:42pm
Nungesser Corporation’s outstanding bonds have a $1000 par value, a 9 percent semiannual coupon, 8 years to maturity, and an 8.5 percent YTM. What is the bond’s price?

## Answer this Question

## Related Questions

- Finance (Check Answer plz) - A comp. has issued a bond with the following ...
- Finance (Check Answer plz) - A comp. has issued a bond with the following ...
- Finance - The Carter Company's bond mature in 10 years have a par value of 1,000...
- Engineering economy - General Electric issued 1000 debenture bonds 3 years ago ...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Math - Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate of 8...
- Finance - Which of the following statements about the relationship between yield...
- Finance - Dahler Corporation has just issued a bond with a maturity of 20 years...
- Finance - Heinz Corporation bonds carry a coupon of 8% and will mature in 5 ...

More Related Questions