« previous next »

Author Question: Progressive Plastics Inc. issued 30-year 7 annual coupon bonds five years ago. Currently, the yield ... (Read 97 times)

nramada

  • Hero Member
  • *****
  • Posts: 580
on: Jul 10, 2018
Progressive Plastics Inc. issued 30-year 7 annual coupon bonds five years ago. Currently, the yield to maturity is 9.65 on these 1,000 par value bonds. What is the current price per bond?
 
  What will be an ideal response?

Question 2

Endicott Enterprises Inc. has issued 30-year semiannual coupon bonds with a face value of 1,000. If the annual coupon rate is 14 and the current yield to maturity is 15, what is the firm's current price per bond?
 
  A) 934.20
  B) 1,000.00
  C) 934.34
  D) 466.79


mariahkathleeen

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer:
Bond Price = PMT  +
= 70  + = 752.84.

MODE = END
INPUT 25 9.65 ? -70 -1,000
KEY N I/Y PV PMT FV
CPT 752.84

Answer to Question 2

Answer: A
Explanation: A)
Bond Price = PMT  +
= 70  + = 934.20
MODE = END, P/Y = 2, C/Y = 2
INPUT 60 15 ? -70 -1,000
KEY N I/Y PV PMT FV
CPT 934.20


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Healed bone fractures can provide clues about activities and fresh fractures can yield information a Healed bone fractures can provide clues about activities and fresh fractures can yield information a
Fossil Fuels Energy Yield and Pollutants—Comparison Fossil Fuels Energy Yield and Pollutants—Comparison
Review of Health and Illness over the Adult Years Review of Health and Illness over the Adult Years
The reaction of a PLP-dependent decarboxylation to yield serotonin The reaction of a PLP-dependent decarboxylation to yield serotonin
Barry Bonds hits a 125m (450') home run that lands in the stands at an altitude 30m above its ... Barry Bonds hits a 125m (450') home run that lands in the stands at an altitude 30m above its ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Electrical Conduction System of the Heart

For a complete list of videos, visit our video library