# Calculate the current price of a \$1,000 par value bond...

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Practice Bond Valuation Problems SOLUTIONS 1. Calculate the current price of a \$1,000 par value bond that has a coupon rate of 6% p.a., pays coupon interest annually, has 14 years remaining to maturity, and has a yield to maturity of 8 percent.
2. You intend to purchase a 10-year, \$1,000 par value bond that pays interest of \$60 every six months. If the yield to maturity is 10% with semiannual compounding, how much should you be willing to pay for this bond?
3. What is the price of a \$5000 par value bond, with a coupon rate of 7.5% (coupon interest paid quarterly), 15 years remaining to maturity and a yield to maturity of 8.25%?
4. Dak, Inc. has a bond outstanding with a par value of \$10,000 that makes monthly coupon payments. The coupon rate is 9 percent and the bond has 24 years remaining to maturity. If the yield to maturity of similar bonds is 9.35 percent, what is the current price of the bond?
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