Compute Bond Price Compute the price of a 4.75 percent coupon bond with 15 years left to maturity and a market interest rate of 6.25 percent. (Assume interest payments are semi-annual and par value is $1,000.) Is this a discount or premium bond?
A) discount
B) premium N = 30, I = 3.125, PMT = 23.75, FV = 1000 CPT PV = -855.34
Since this is less than $1,000, it is a discount bond.
Correct Answer:
Verified
Q21: Which of the following is a reason
Q26: Time to Maturity A bond issued by
Q34: Which of the following terms is the
Q39: Current Yield What's the current yield of
Q41: Yield to Maturity A 4.25 percent coupon
Q43: TIPS Capital Return Consider a 2.75% TIPS
Q44: Compute Bond Price Compute the price of
Q45: Taxable Equivalent Yield What's the taxable equivalent
Q46: Yield to Maturity A 5.75 percent coupon
Q47: Current Yield What's the current yield of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents