1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zalisa [80]
3 years ago
10

Q1: Grohl Co. issued 11-year bonds a year ago at a coupon rate of 6.5 percent. The bonds make semiannual payments. If the YTM on

these bonds is 8.2 percent, what is the current bond price? Q2 Ashes Divide Corporation has bonds on the market with 15 years to maturity, a YTM of 7.2 percent and a current price of $856. The bonds make semiannual payments. What must the coupon rate be on these bonds? Q3: Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Band Sam? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer- term bonds? Q4: Bond is a 5 percent coupon bond. Bond Kis a 14 percent coupon bond. Both bonds have ten years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 3 percent, what is the percentage price change of these bonds? What if rates suddenly fall by 3 percent instead? What does this problem tell you about the interest rate risk of lower-coupon bonds? Q5: River Corp. has 8.2 percent coupon bonds making annual payments with a YTM of 7.3 percent. The current yield on these bonds is 7.6 percent. How many years do these bonds have left until they mature?​
Business
1 answer:
WINSTONCH [101]3 years ago
6 0

Answer:

Explanation:

N = 4 (5-year bond - 1 year (ago))*2 = 8

I% = YMT= 8/2 = 4

PMT = (1,000)(.07) = 70/2 = 35

FV=1,000

Calculating PV, PV=966.34

You might be interested in
Where can I find a bomber winter jacket In flushing
ollegr [7]
I would try Amazon or Ebay.

Is this a school question?
7 0
3 years ago
Read 2 more answers
If you invest $50,000 at 10% interest compounded continuously, what is the average amount in your account over one year? (Round
elena55 [62]
50,000*10/100 then you will get an answer 

6 0
4 years ago
Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The
mote1985 [20]

Answer:

A

Explanation:

7 0
3 years ago
Read 2 more answers
_______ is defined in marketing terms as the basic problem-solving benefits consumers are seeking.
omeli [17]
The term that is being referred to the description is CORE CUSTOMER VALUE. The core customer value is a marketing term that describes the fundamental benefits of problem solving that consumers are looking for. The customer value are classified into two and these are the perceived and the desired value.
7 0
4 years ago
If the fed expands the money supply by $1 trillion, what will happen in the money market?
natta225 [31]
<span>If the Fed expands the money supply by $1 trillion, the money market will be (letter C.) the equilibrium interest rate will fall, and more money will exchanged in equilibrium. It is because people will have more money to spend. Some would choose to use this money to buy goods and services while other opt to put their money in banks which may lead to lower interest rates to persuade people in borrowing. </span>
4 0
3 years ago
Other questions:
  • Which of the following résumé statements is most effective? helpppppppppp plzzzz need this answered asap. multiply choice
    9·2 answers
  • Ford, an american car company, purchased volvo, which is based in sweden. what is this an example of? an independent agency a fo
    14·1 answer
  • Which of the following would NOT increase the supply of money in a fiat money economy?
    9·2 answers
  • This type of file is created when you save your word processing document.
    14·2 answers
  • Inventory records for Dunbar Incorporated revealed the following:Date Transaction Number of units Unit CostApr. 1 Beginning inve
    12·1 answer
  • Why are gas prices 2.75?
    12·2 answers
  • Opportunity cost can also be defined as the __________ cost of a decision.
    9·1 answer
  • You are thinking of purchasing a house. The house costs $ 350 comma 000. You have $ 50 comma 000 in cash that you can use as a d
    11·1 answer
  • Ahnberg Corporation had 660,000 shares of common stock issued and outstanding at January 1. No common shares were issued during
    13·1 answer
  • Distinguish between individual Centred career and Organisation Centred career​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!