Corporate finance

A 1,000 face value bond has a remaining maturity of 8 years and a required return of 7%. The bond's coupon rate is 8%. What is the fair value of bond?

  1. 👍 0
  2. 👎 0
  3. 👁 54
asked by lynn

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance

    (Bond valuation) A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9%. "The bond's coupon rate is 7.4%. What is the fair value of this bond?

    asked by Kim on October 7, 2012
  2. Finance 370

    $1,000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond?

    asked by Anonymous on September 10, 2012
  3. Finance

    Bond value and time--Constant required returns Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, $1,000-par bond that pays interest annually. The required return is currently 14%, and the company is certain

    asked by Mary on November 7, 2011
  4. finance

    A $1,000 fave value bond has a remaining maturity of 10 years and a required return of 9%. The bond's coupon rate is 7.4%. What is the fair value of this bond?

    asked by angek on March 24, 2012
  5. finance

    You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the beginning price

    asked by Jill on October 11, 2012
  6. 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

    asked by valerie on March 8, 2013
  7. Finance

    A firm's bond's have a maturity of 10 years with a $1,000 face value, an 8 percent semiannual coupon, are callable in 5 years at $1,050, and currently sell at a price of $1,100. What are their yield to maturity and their yield to

    asked by Hk on March 14, 2015
  8. financial health science

    ABC Health Med, has a $1,000 par value bond with an 8 percent rate outstanding. The bond has 12 years remaining to it maturity date. If interest is paid semiannual interest, what is the value of the bond when the required return

    asked by frances on December 17, 2010
  9. financial

    Stock. What is the value of a stock with a $3 dividend just paid and a 8% required return with 2% growth? Bond. What is the value of a $1,000 par value bond with annual payments of an 11% semiannual coupon with a maturity of 20

    asked by MichaelR on May 6, 2015
  10. Math

    The McKeegan Corporation has two different bonds currently outstanding. Bond M has a face value of $29,500 and matures in 24 years. The bond makes no payments for the first 7 years, then pays $2,100 every six months over the

    asked by Mary on March 20, 2012

More Similar Questions