# 1Ã¢â‚¬â€¹(Bond valuation) Calculate the value of a bond that matures in 19 years and has a \$ 1 comma 000 par

1Ã¢â‚¬â€¹(Bond valuation) Calculate the value of a bond that matures in 19 years and has a \$ 1 comma 000 par
value. The annual coupon interest rate is 11 percent and theÃ¢â‚¬â€¹ market’s required yield to maturity on aÃ¢â‚¬â€¹ comparable-risk bond is 9 percent.
2 Bond valuation) A bond that matures in 10 years has a Ã¢â‚¬â€¹\$1 comma 000 par value. The annual coupon interest rate is 7 percent and theÃ¢â‚¬â€¹ market’s required yield to maturity on aÃ¢â‚¬â€¹ comparable-risk bond is 12 percent. What would be the value of this bond if it paid interestÃ¢â‚¬â€¹ annually? What would be the value of this bond if it paid interestÃ¢â‚¬â€¹ semiannually?
3 Ã¢â‚¬â€¹(Bond valuation) Ã¢â‚¬â€¹Pybus, Inc. is considering issuing bonds that will mature in 16 years with an annual coupon rate of 9 percent. Their par value will be Ã¢â‚¬â€¹\$1 comma 000Ã¢â‚¬â€¹, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bondsÃ¢â‚¬â€¹ and, if itÃ¢â‚¬â€¹ does, the yield to maturity on similar AA bonds is 11 percent. Ã¢â‚¬â€¹ However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an AÃ¢â‚¬â€¹ rating, the yield to maturity on similar A bonds is 12 percent. What will be the price of these bonds if they receive either an A or a AAÃ¢â‚¬â€¹ rating?
4 (Yield toÃ¢â‚¬â€¹ maturity) The market price is Ã¢â‚¬â€¹\$1 comma 050 for a 12Ã¢â‚¬â€¹-year bond Ã¢â‚¬â€¹(\$1 comma 000 parÃ¢â‚¬â€¹ value) that pays 11 percent annualÃ¢â‚¬â€¹ interest, but makes interest payments on a semiannual basis Ã¢â‚¬â€¹(5.5 percentÃ¢â‚¬â€¹ semiannually). What is theÃ¢â‚¬â€¹ bond’s yield toÃ¢â‚¬â€¹ maturity?
5 Doisneau 18Ã¢â‚¬â€¹-year bonds have an annual coupon interest of 12 Ã¢â‚¬â€¹percent, make interest payments on a semiannualÃ¢â‚¬â€¹ basis, and have a Ã¢â‚¬â€¹\$1 comma 000 par value. If the bonds are trading with aÃ¢â‚¬â€¹ market’s required yield to maturity of 13 Ã¢â‚¬â€¹percent, are these premium or discountÃ¢â‚¬â€¹ bonds? Explain your answer. What is the price of theÃ¢â‚¬â€¹ bonds?
6 Ã¢â‚¬â€¹(Bond valuation) Ã¢â‚¬â€¹Fingen’s 14Ã¢â‚¬â€¹-year, Ã¢â‚¬â€¹\$1 comma 000 par value bonds pay 15 percent interest annually. The market price of the bonds is Ã¢â‚¬â€¹\$950 and theÃ¢â‚¬â€¹ market’s required yield to maturity on aÃ¢â‚¬â€¹ comparable-risk bond is 17 percent.
a. Compute theÃ¢â‚¬â€¹ bond’s yield to maturity.
b. Determine the value of the bond toÃ¢â‚¬â€¹ you, given your required rate of return.
c. Should you purchase theÃ¢â‚¬â€¹ bond?
7 Ã¢â‚¬â€¹(Yield toÃ¢â‚¬â€¹ maturity) AbnerÃ¢â‚¬â€¹ Corporation’s bonds mature in 17 years and pay 7 percent interest annually. If you purchase the bonds for Ã¢â‚¬â€¹\$750Ã¢â‚¬â€¹, what is your yield toÃ¢â‚¬â€¹ maturity?
8 Ã¢â‚¬â€¹(Bond valuation) The 15Ã¢â‚¬â€¹-year Ã¢â‚¬â€¹\$1 comma 000 par bonds of Vail Inc. pay 12 percent interest. TheÃ¢â‚¬â€¹ market’s required yield to maturity on aÃ¢â‚¬â€¹ comparable-risk bond is 15 percent. The current market price for the bond is \$ 910.
a. Determine the yield to maturity.
b. What is the value of the bonds to you given the yield to maturity on aÃ¢â‚¬â€¹ comparable-risk bond?
c. Should you purchase the bond at the current marketÃ¢â‚¬â€¹ price?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.