Q1 What is the value of a $1000 par value bond with a 7%...

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Finance

Q1

  1. What is the value of a $1000 par value bond with a 7% annual coupon if its yield to maturity equal is 6% and it will mature in 8 years?

Round your answer to the nearest tenth.

  1. The market price of a 10-year bond is 979$, its yield to maturity is 8% per year, and annual coupon payments are equal to 979$. The face value of the bond is $t000. Calculate the present value of the bond.

Would you buy it?

Round your answer to the nearest tenth.

  1. Boeing recently issued bonds with a maturity of 10 years. The coupon rate is 12% but coupon payments will be paid quarterly. The par value is $1000 and the yield to maturity is equal to 8% compounded quarterly. Calculate the value of the bond today.

Round your answer to the nearest tenth.

  1. Calculate the coupon payment of the bond that has 7 years till maturity, $1000 par value, 6% yield to maturity and it currently sells for $900?

Round your answer to the nearest tenth.

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