Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider a 30-year bond that pays semi-annual coup

Consider a 30-year bond that pays semi-annual coupons of $500. The face value of the bond...

50.1K

Verified Solution

Question

Finance

Consider a 30-year bond that pays semi-annual coupons of $500.The face value of the bond is $100, 000. If the annual yield rateis 3%, calculate the following:

a) the annual coupon rate of the bond

b) the price of the bond, one period before the first coupon ispaid

c) the price of the bond, immediately after the 15th coupon ispaid

d) the price of the bond, 2 months after the 30th coupon ispaid

*No financial Calculator*

Answer & Explanation Solved by verified expert
4.2 Ratings (641 Votes)
Say settlement date of bond is 112019 so bond will mature on12312048a 6 month coupon    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Consider a 30-year bond that pays semi-annual coupons of $500.The face value of the bond is $100, 000. If the annual yield rateis 3%, calculate the following:a) the annual coupon rate of the bondb) the price of the bond, one period before the first coupon ispaidc) the price of the bond, immediately after the 15th coupon ispaidd) the price of the bond, 2 months after the 30th coupon ispaid*No financial Calculator*

Other questions asked by students

Q

If you exposed an unknown bacteria to four different bacteriophages. Susceptibility of the bacteria will be...

Biology
Q

The COVID-19 virus infects cells of the respiratory system. The virus spreads by moving from one...

Medical Sciences
Q

An ideal chopper (buck) operates at a frequency of 500 Hz. It is supplied from a...

Electrical Engineering
Q

Look at this diagram S T R If PR and SU are parallel lines and...

Geometry
Q

1 Which one of the following is the correct sign diagram for the function y...

Basic Math
Q

Question 3 Khadijia wants to have 10 000 to use during her retirement in 12...

Algebra
Q

Let u 6 BLEIN and 11 3 W 3 5 Find a vector not in...

Algebra
Q

Company A gives Plant and Machinery ($500,000 cost, $200,000 accumulated depreciation) and $100,000 cash for...

Accounting
Q

4...please answer asap

Accounting
Q

QUESTION TWO (20 Marks) a) Following the financial reports for Burke Corporation, its leverage is...

Finance
Q

QCESTION 2 Resit Co produces liquid detergent. The production process has been automated, so the...

Accounting
Q

Ch. 6 Time Value of Money Concepts (2 marks) E6-6 Present value; annuities Using the...

Accounting