Finance
posted by Kay .
Harrison Inc. has issued a zero/ coupon bond with par value of $1000. The bond pays no coupons until the end of the 6th year, at which point it pays 10% annual coupons. What is the issue (initial) price of this bond if it has a 20 year maturity and yield to maturity of 6%?
Respond to this Question
Similar Questions

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
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 … 
finance
A manufacturing company issues a bond with a 100,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays annual coupons, and the yield to maturity is 6.8%, what percentage of the bond's price 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 … 
accounting
Consider two bonds on the market: one zerocoupon bond, maturing in exactly 1 year from today and trading at 99% of its par value; another is a 2% coupon bond, maturing in exactly 2 years from today, trading at 101 of its par value. … 
Finance
Assume that Pelon Inc. has issued a 10 year maturity bond with a yield of 8%. Its coupon rate is 5% and the coupons are paid semi annually. Its par value is the value of this bond at the issue date? 
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? 
Finance
You are considering the purchase of an outstanding Nickel Corp bond that was issued at par on Oct. 2, 2007 with a 10year maturity. It is now Oct 2, 2013. The bond has an 8% coupon rate and has semiannual coupons. The price is now … 
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: …