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Author Question: The Cougar Corporation has issued 20-year semiannual coupon bonds with a face value of 1,000. If the ... (Read 69 times)

geodog55

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on: Jul 10, 2018
The Cougar Corporation has issued 20-year semiannual coupon bonds with a face value of 1,000. If the annual coupon rate is 10 and the current yield to maturity is 12, what is the firm's current price per bond?
 
  A) 850.61
  B) 849.54
  C) 1,170.27
  D) 1,171.59

Question 2

The beta of the market
 
  A) is 1.
  B) is greater than 1.
  C) cannot be determined.
  D) is less than 1.


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Rilsmarie951

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: B
Explanation: B)
Bond Price = PMT  +
= 50  + = 849.54.
MODE = END, P/Y = 2, C/Y = 2
INPUT 40 12 ? -50 -1,000
KEY N I/Y PV PMT FV
CPT 849.54

Answer to Question 2

A


geodog55

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

connor417

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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