Coupon bond-find the bond price

Assignment Help Financial Management

Reference no: EM131948570

1. Estee Lauder Cos. issues a 3 percent coupon bond with 30 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 12 percent, find the bond's price.

a. none of the answers is correct

b. $242.02

c. $161.35

d. $275.03

e. $220.02

2. Archer-Daniels-Midland Co issues a 3 percent coupon bond with 14 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 15 percent, find the bond's price.

a. $179.29

b. $244.48

c. $305.60

d. $268.93

e. none of the answers is correct

Reference no: EM131948570

Questions Cloud

What is the amount of each of the monthly installments : You have just borrowed $12,000 from Falcon Bank to buy a new Ford. The loan is to be repaid in 50 equal monthly installments.

Convertible bond is always worth : A convertible bond is always worth (remember to choose the best answer):

The call price will exceed the par value by amount called : The call price will exceed the par value by an amount called:

Calculate the mortgage constant : You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%.

Coupon bond-find the bond price : Archer-Daniels-Midland Co issues a 3 percent coupon bond with 14 years maturity, find the bond's price.

What is the incremental cost of borrowing the extra money : A borrower is purchasing property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest.

What is the amount of each payment in given case : You are borrowing $5, 290 to buy a car. The terms of the loan call for monthly payments for 5 years at a 5.00 percent interest compounded monthly.

Canadian government had to pay for loan : What is the implied rate of interest or return per year that Canadian government had to pay for this loan?

Calculate what is the effective interest rate on the loan : A borrower has a 30 year fully amortizing FRM, with a $300,000 balance, 4.5% rate. There is a 3% prepayment penalty on this loan if it is repaid before 5 years.

User Account

All Pages