This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The Cougar Corporation has issued 20-year semiannual coupon bonds with a face value of 1,000. If the ... (Read 77 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Rilsmarie951

  • Sr. Member
  • ****
  • Posts: 316
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

  • Member
  • Posts: 530
Reply 2 on: Jul 10, 2018
:D TYSM

Liamb2179

  • Member
  • Posts: 365
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Moth face Moth face
face muscles face muscles
The hatred and vengeance of adults become the children’s heritage. The headband of this 4-year-old ... The hatred and vengeance of adults become the children’s heritage. The headband of this 4-year-old ...
CT imaging of glioblastoma in a 6-year-old girl. CT imaging of glioblastoma in a 6-year-old girl.
Hospitalization per year Hospitalization per year
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ... Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library