Financial
posted by Judy .
assume a $1000 face value bond has a coupon rate of 8.5 percent pay interest semiannually, ahd has an eightyear life. if investors are willingto accept a 10.25 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?
Respond to this Question
Similar Questions

finance
One year ago, Auto Land issued 10year bonds at par. The bonds have a coupon rate of 6.5 percent and pay interest annually. Today, the market rate of interest on these bonds is 6.25 percent. How does today's price of this bond compare … 
Finance
A fouryear TIPS bond promises a real annual coupon return of 4 percent and its face value is $1,000. While the annual inflation rate was approximately zero when the bond was first issued, the inflation rate suddenly accelerated to … 
Finance
Zabberer Corporation bonds pay a coupon rate of interest of 12 percent annually and have a maturity value of $1000. The bonds are scheduled to mature at the end of 14 years. The company has the option to call the bonds in 8 years at … 
Finance
Suppose the September CBOT Treasury bond futures contract has a quoted price of 8909. What is the implied annual interest rate inherent in this futures contract? 
Finance
The Garcia company's bond have a face value of 1000, will mature in 10 years and carry a coupon rate of 16 percent. Assume interest payments are made semi annually. Determine the present value of the bonds cash flow if the required … 
Finance
The Garcia company's bond have a face value of 1000, will mature in 10 years and carry a coupon rate of 16 percent. Assume interest payments are made semi annually. Determine the present value of the bonds cash flow if the required … 
finance
Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semiannually, and has an eightyear life. If investors are willing to accept a 10.25 percent rate of return on bonds of similar quality, what is the present … 
finance
(Bond valuation) Eagle Ventures has a bond issue outstanding with an annual coupon rate of 7 percent and 4 years remaining until maturity. The par value of the bond is $1,000. (a) Determine the current value of the bond if present … 
Business
Assume venture Healthcare sold bonds that have a ten year maturity,a 12 percent coupon rate with annual payment,and a $1000 par value.Suppose that two years after the bonds were issued ,the required interest rate fell to 7 percent … 
finance
Usha Manufacturing Co. has a bond of $1000 par value outstanding. It pays interest annually and carries an annual coupon rate of 8%. Bonds are issued 2 years ago & due in 10 years. If the market rate of return on bonds is 7%. Required: …