Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. redesigned computers has 10 percent coupon bonds o

Redesigned Computers has 10 percent coupon bonds outstanding with a current market price of $898.06. The...

50.1K

Verified Solution

Question

Finance

Redesigned Computers has 10 percent coupon bonds outstandingwith a current market price of $898.06. The yield to maturity is11.34 percent and the face value is $1,000. Interest is paidsemiannually. How many years is it until this bond matures?rs at a4.50 percent interest compounded monthly. What is the amount ofeach payment?

Answer & Explanation Solved by verified expert
3.9 Ratings (592 Votes)
Bond price is equal towhere 50 is coupon payment semiannualt time to maturityNow we have bond price with us ie 89806So we have to calculate the value for tSolving for t we get answer as 36 Now divide this 36 by 2 sothat we we will get number of years ie 18 We divided t36 by    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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

What percentage of respondents is contacted typically during data validation? Group of answer choices 10% 15% 25% 33% 40% A researcher should consider...

Chemistry
1.2K views

4. In terms of intermolecular interactions, try to account for the differences in melting point between...

Psychology
1.2K views

three page paper identifying the key historical developments in Victimology. In your opinion, is today’s idea of...

Biology
1.2K views

Which of the following is an example of image file format O O C WEBM...

Physics
1.2K views

14 In the circuit the batteries have emf E E 1V E 2 5 V...

Geometry
1.2K views

Calculate perimeter blank 1 and area blank 2 of the following shape 1 5 cm...

Algebra
1.2K views

9. Let V be the vector space of all functions f: R R. (Note that...

Accounting
1.2K views

if the net cash flow is 240000 and the investment cost is 1200000. would the...

Accounting
1.2K views

Trial Balance Summary ...

Accounting
1.2K views

Bond Discount, Entries for Bionds Payable Transactions On July 1, Vear 1. Livingston Corporation, a...

Accounting
1.2K views

32) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or...

Accounting
1.2K views

Compute payroll An employee earns $36 per hour and 1.5 times that rate for all...