Finance

posted by .

Benson Incorporated has bonds with the following features: Par value of 1,000, maturity of 12 years, and a coupon rate of 8%.The yield to maturity is 10%. Pleases determine if the bond sells for for a premium, par, or discount and explain your answer. Calculate the value of the bond if interest is paid on an annual basis versus a semi-annual basis. Show your work?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. FINANCE

    Current yield and yield to maturity A bond has a $1,000 par value, 10 years to maturity, a 7 percent annual coupon, and sells for $985. a. What is its current yield?
  2. FINANCE

    Yield to call Six years ago, the Singleton Company issued 20-year bonds with a 14 percent annual coupon rate at their $1,000 par value. The bonds had a 9 percent call premium, with 5 years of call protection. Today, Singleton called …
  3. Finance

    A bond has a $l000 par value, l0 years to maturity, a 7 percent annual coupon, and sells for $985. a. What is its current yield?
  4. Finance

    Which of the following statments is CORRECT?
  5. Finance

    Benson Incorporated has bonds with the following features par value of 1000.00 maturity is 10%. Determine if the bond sells for a premium, par, or discount and explain your answer. Calculate the value of the bond if interest is paid …
  6. Finance

    A 20-year, $1,000 par value bond has a 9% annual coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 5 years from now
  7. finance

    Suppose Delta Company issued bonds with a 15-year maturity, a Rs. 1,000 par value, a 12 percent coupon rate, and semiannual interest payments. If actual price of the bond in the market is Rs 900, compute yield to maturity, current …
  8. finance

    1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000. The market interest rate (r) is 6%, based on semiannual compounding. What is the bond’s price?
  9. Finance

    Which of the following statements about the relationship between yield to maturity and bond prices is FALSE?
  10. FINANCE

    10. Bond prices and interest rate An 8 percent coupon bond with 15 years to maturity is priced to offer a 9 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.5 percent. What is the change in price …

More Similar Questions