Finance

posted by .

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

  • Finance -

    23

  • Finance -

    TA MÈRE

    SOIT

    1000/925 X 0.25 / 1000/925^15

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100. a. What is the current yield on the bond?
  2. Finance

    A 12-year bond has an annual coupon rate of 9%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT?
  3. 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?
  4. Finance

    Dahler Corporation has just issued a bond with a maturity of 20 years, coupon rate of 10.25%, and a market price of $1330.25. Dahler makes semiannual coupon payments. a) what is the YTM expressed as a quoted rate based on semi-annual …
  5. 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?
  6. Finance

    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 …
  7. Finance

    Which of the following statments is CORRECT?
  8. Finance

    2. You are now considering adding a corporate bond to your investment portfolio. The bond was issued last year to have 10 years to maturity (so it has 9 years remaining to maturity from today) The bond has an 8% coupon, and was sold …
  9. 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?
  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