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Today is January 5th, 2022. A bond with a face value of $1,000 and a coupon rat…

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Wize University Introduction to Finance Textbook > Bond Valuation

Bond Valuation

5 Activities

Wize University Introduction to Finance Textbook > Bond Valuation

Cash Price vs Quoted Price

2 Activities

Today is January 5th, 2022. A bond with a face value of $1,000 and a coupon rate of 12% paid semi-annually on December 31st and June 30th. If the bond is quoted at 99.421 what is the cash price of the bond?

Round your work to at least 6 decimal places and final answer to 2 decimal places.

More Bond Valuation Questions:
A bond sold at a discount is expected to __________ in value as we approach maturity, assuming the yield remains constant.
A bond with a coupon rate of 10% and face value of $1000 is currently trading at a premium.
Which of the following statements is false?
What is the value of a 9 year bond with a face value of $1000, a coupon rate of 12% paid quarterly if the YTM is equal to 15%?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
What is the value of a 6 year bond with a face value of $900, a coupon rate of 8% paid monthly if the YTM is equal to 10%?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
What is the value of a 8 year bond with a face value of $1000, a coupon rate of 10% paid semi-annually if the YTM is equal to 12%?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
What is the value of a 5 year bond with a face value of $1000, a coupon rate of 6% paid semi-annually if the YTM is equal to 5%?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
Twelve years ago a fir issued a 30-year $1,000 face value bond at par. At the time, the market yield for bonds of similar risk was 5%. Today these bonds are yielding 3% and the coupon is paid semi-annually.
Round your work to at least 6 decimal places and final answer to 2 decimal places.
A 30-year bond with a face value of $1,000 and coupons payable monthly is selling at par. If the effective quarterly yield is 4.55%.
Round your work to at least 6 decimal places and final answer to 2 decimal places.
A bond has a coupon rate of 12% paid monthly and is quoted at 87.22. What is the yield to maturity if there are 7 years remaining until maturity?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
The price of a 6 year semi-annual pay bond with a face value of $1,000, 8% annual coupon
and yield to maturity of 9% is closest to:
A bond sold for $1045.44 on March 14th. The bond has a face value of $1,000, coupon rate of 8% paid semi-annually on April 1st and October 1st. What was the bond quote on March 14th?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
LOYC Corp is going through some financial hardships and has asked its bondholders to accept for the next 2 coupon payments to be skipped and added to the face value at maturity. The company's management has agreed to add interest to those 2 coupons an APR of 10% per year. If the bonds have 20 years remaining until maturity, have a coupon rate of 8% and are currently yielding 14%, what is the value of these bonds today?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
ABC Company just issued a bond with a face value of $1,000. The coupons are paid semi-annually and the bond matures in 7 years. If the bond is worth $894.55 today and is yielding 10%, what is the coupon rate?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
ABC Company just issued a bond with a face value of $1,000 and a coupon rate of 9%. The coupons are paid quarterly and the bond matures in 7 years. If the bond is worth $894.55 today, what is the yield to maturity?
ABC Company just issued a bond with a face value of $1,000 and a coupon rate of 5%. The coupons are paid quarterly and the bond matures in 12 years. If the yield is 7%, what is the value of the bond today?
ABC Company just issued a bond with a face value of $1,000 and a coupon rate of 8%. The coupons are paid semi-annually and the bond matures in 10 years. If the yield is 7%, what is the value of the bond today?
More Cash Price vs Quoted Price Questions:
Today is November 12th. A bond with a face value of $1000 and a coupon rate of 10% paid semi-annually on December 31st and June 30th. If the bond is sold today for $984.55, what is the quoted price?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
Today is March 5th. A bond with a face value of $1000 and a coupon rate of 8% paid semi-annually on January 31st and July 31st. If the bond is sold today for $1003.40, what is the bond quote?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
Today is August 23rd. A bond with a face value of $900 and a coupon rate of 4.8% paid semi-annually on January 15th and July 15th. If the bond is quoted at 101.44 what is the cash price of the bond?
Round your work to at least 6 decimal places and final answer to 2 decimal places.
Today is October 11th. A bond with a face value of $1,000 and a coupon rate of 6% paid semi-annually on December 31st and June 30th. If the bond is quoted at 98.44 what is the cash price of the bond?
Round your work to at least 6 decimal places and final answer to 2 decimal places.