What is the current price of the bond
Course:- Finance Basics
Reference No.:- EM13266432

Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 20 years to maturity, and a coupon rate of 7.0 percent paid annually.

If the yield to maturity is 8.1 percent, what is the current price of the bond? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) SHOW your work!!


Put your comment

Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Assume that you would normally not carry any bank balance that would meet the 20 percent compensating balance requirement. What is the rate of annual interest on each loan?
In what ways does the company adapt its writing style, use of graphics, and other features to adapt to different cultures? Write a brief report on your findings, and include
What factors have contributed to the growth in share repurchase programs by American public companies over the past twenty years? What is the expected effect on share repurc
"Mike Smith has the following financial data. Investment Assets at Year End $475,000 Investment Assets at Beginning of the Year $392,000 Savings Made During the Year by Mike
A firm currently has the following capital structure which it intends to maintain. Debt: $1,250,000 par value of 7.25% bonds outstanding with an annual before-tax yield to mat
Next, select, describe, and defend your selections of Capital Markets Securities investment categories that would be suitable given the policy parameters and constraints of
Which of the following is best defined as a consciously coordinated social unit, composed of two or more people, which functions on a relatively continuous basis to achieve
What is the difference between the Direct Method and Indirect Method for calculating Cash Flow? Explain how the two methods are reconciled and also provide a brief descripti