math/finance
posted by eric .
Assume that you are considering the purchase of a 30year, noncallable bond with an annual coupon rate of 8.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 7.4% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
Respond to this Question
Similar Questions

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 semiannual … 
Finance
A threeyear bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semiannual coupon interest payments. 
Finance
A threeyear bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semiannual coupon interest payments. 
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
1.You buy a SML Bond for $980. The bond has a face value of $1000 and an annual coupon rate of 8%. There are 5 years left until maturity. Because of a special delivery by the stork, you decide to sell the bond at the end of year 2 … 
finance
1. Yest Corporation's bonds have a 15year 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 bondâ€™s price? 
Math
Suppose you have a $1,000 face value bond with 12 years to maturity, a coupon rate of 6% and a yield to maturity of 8%. If the bond makes semiannual payments, what is it's price today? 
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 … 
Advanced Finance
6. (TCO F) Suppose the December CBOT Treasury bond futures contract has a quoted price of 8007. What is the implied annual interest rate inherent in the futures contract? 
finance
A General Power bond with a face value of $1,000 carries a coupon rate of 9.0%, has 9 years until maturity, and sells at a yield to maturity of 8.0%. (Assume annual interest payments.)