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astraxan [27]
3 years ago
6

Suppose you structured a bond deal for Kanye West that paid him $20 million upfront, with future royalties and streaming revenue

s from his past albums going towards payments to bondholders. Each bond had a face value of $1,000 and a coupon rate of 8.4% with semi-annual coupons. If the bonds have 8 years remaining until maturity and the current yield to maturity is 10.4%, what price is each bond trading at right now? Round to the nearest cent.
Business
1 answer:
NNADVOKAT [17]3 years ago
8 0

Answer:

PV=?

FV=$1000

PMT= (0.084*1000/2)=42

N= (8*2)=16

I= 10.4/2=5.2%

Put these values in Financial calculator and compute the PV

Current price of bond= 893

Explanation:

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inysia [295]

Answer:

three

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3 years ago
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Rudik [331]

Answer:

E. I, II, and IV only

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8 0
3 years ago
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Rashid [163]
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7 0
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lorasvet [3.4K]

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Answer:

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