A ten-year bond, with par value equals $1000, pays 7% annually. If similar bonds are currently yielding 6% ann?

Update:

A ten-year bond, with par value equals $1000, pays 7% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.

3 Answers

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  • Don G
    Lv 7
    9 years ago
    Best Answer

    Interest payments are $35, for 20 periods. Current semi-annual market rate is 3%.

    Future Value = $1,000. Compute Present (Market) Value - $1,074.39

  • 5 years ago

    A ten-year bond pays 8 % annual interest (paid semiannually). If similar bonds are currently yielding 6 % annually, what is the market value of the bond?

    Question 3 options:

    A)

    $1,000

    B)

    $1,147.20

    C)

    $1,148.77

    D)

    $1,080.00

  • clance
    Lv 4
    3 years ago

    a 10-3 hundred and sixty 5 days bond will pay 8 % annual interest (paid semiannually). If similar bonds are at present yielding 6 % each and every year, what's the marketplace value of the bond? question 3 concepts: A) $a million,000 B) $a million,147.20 C) $a million,148.77 D) $a million,080.00

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