Homework Help is Here – Start Your Trial Now!
Business
Finance
What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places.

What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
See similar textbooks
icon
Related questions
Question
Appendix A-2 n 1% 2% 3% 4% 14% 15% 5% 6% 0.9615 0.9524 0.9434 7% 0.9346 16% 17% 18% 19% 20% 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 1 0.9901 0.9804 0.9709 0.7695 0.7561 0.7432 0.7305 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.9238 0.8885 0.8548 4 0.9610 5 0.9515 6 0.9420 0.8880 0.9057 0.8626 0.82 19 0.8375 0.7903 0.9327 0.8706 0.8131 0.7599 7 8 0.9235 0.9143 9 0.9053 0.8963 12 0.8874 13 0.8787 14 0.8700 0.8613 0.8528 17 0.8444 15 16 8% 9% 10% 11% 12% 13% 0.9259 0.9174 0.9091 0.9009 0.89 29 0.8850 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7182 0.7062 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.63 55 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.54 28 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.7142 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.7002 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.03 70 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.03 16 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.03 29 0.0270 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.2198 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.04 17 0.0331 0.0264 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0230 0.0182 0.0144 0.1956 0.1504 0.1159 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.0123 0.1846 0.1406 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 0.0135 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0541 0.1299 0.1163 0.1042 0.0935 0.1110 0.0985 0.0876 0.0779 0.0949 0.0835 0.0736 0.0649 0.0811 0.0708 0.06 18 0.0693 0.0600 0.0520 0.0592 0.0508 0.0437 0.0506 0.0431 0.0367 0.0365 0.0309 0.0451 0.6050 0.5134 0.4363 0.3714 0.5874 0.5703 18 0.8360 0.0376 19 0.8277 0.6864 0.4936 0.4155 0.3503 0.4746 0.3957 0.3305 0.2765 0.2317 0.3769 0.2584 20 0.8195 0.6730 0.5537 0.3118 0.0308 0.4564 0.4388 21 0.8114 0.5375 0.2942 0.2415 0.6598 22 0.8034 0.6468 23 0.7954 0.6342 0.5067 0.5219 0.42 20 0.2775 0.2257 0.1839 0.0262 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.0222 0.0183 0.0188 0.0154 0.0160 0.0129 0.0211 0.0169 0.0135 0.0109 0.0115 0.0091 0.0097 0.0077 0.0369 24 0.7876 0.6217 0.4919 0.3901 0.3101 25 0.7798 0.6095 0.4776 0.3751 0.2953 26 0.7720 0.5976 0.4637 0.3607 0.2812 27 0.7644 0.5859 0.4502 0.3468 0.2678 0.7568 0.5744 0.4371 0.3335 0.2551 0.7493 0.5631 0.4243 0.3207 0.2429 0.7419 0.5521 0.4120 0.3083 0.6717 0.2083 50 0.6080 0.3715 0.2281 0.1407 0.0291 28 29 30 0.2314 0.0105 0.0082 0.0064 0.0090 0.0070 0.0054 0.0019 0.0013 0.0010 0.0004 0.0003 0.0002 40 0.4529 0.3066 0.1420 0.0872 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) 10 11 0.3589 0.3418 0.0259 0.0218 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0087 0.0073 0.0061 0.0051 0.0042 0.0007 0.0001
Transcribed Image Text:Appendix A-2 n 1% 2% 3% 4% 14% 15% 5% 6% 0.9615 0.9524 0.9434 7% 0.9346 16% 17% 18% 19% 20% 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 1 0.9901 0.9804 0.9709 0.7695 0.7561 0.7432 0.7305 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.9238 0.8885 0.8548 4 0.9610 5 0.9515 6 0.9420 0.8880 0.9057 0.8626 0.82 19 0.8375 0.7903 0.9327 0.8706 0.8131 0.7599 7 8 0.9235 0.9143 9 0.9053 0.8963 12 0.8874 13 0.8787 14 0.8700 0.8613 0.8528 17 0.8444 15 16 8% 9% 10% 11% 12% 13% 0.9259 0.9174 0.9091 0.9009 0.89 29 0.8850 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7182 0.7062 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.63 55 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.54 28 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.7142 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.7002 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.03 70 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.03 16 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.03 29 0.0270 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.2198 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.04 17 0.0331 0.0264 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0230 0.0182 0.0144 0.1956 0.1504 0.1159 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.0123 0.1846 0.1406 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 0.0135 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0541 0.1299 0.1163 0.1042 0.0935 0.1110 0.0985 0.0876 0.0779 0.0949 0.0835 0.0736 0.0649 0.0811 0.0708 0.06 18 0.0693 0.0600 0.0520 0.0592 0.0508 0.0437 0.0506 0.0431 0.0367 0.0365 0.0309 0.0451 0.6050 0.5134 0.4363 0.3714 0.5874 0.5703 18 0.8360 0.0376 19 0.8277 0.6864 0.4936 0.4155 0.3503 0.4746 0.3957 0.3305 0.2765 0.2317 0.3769 0.2584 20 0.8195 0.6730 0.5537 0.3118 0.0308 0.4564 0.4388 21 0.8114 0.5375 0.2942 0.2415 0.6598 22 0.8034 0.6468 23 0.7954 0.6342 0.5067 0.5219 0.42 20 0.2775 0.2257 0.1839 0.0262 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.0222 0.0183 0.0188 0.0154 0.0160 0.0129 0.0211 0.0169 0.0135 0.0109 0.0115 0.0091 0.0097 0.0077 0.0369 24 0.7876 0.6217 0.4919 0.3901 0.3101 25 0.7798 0.6095 0.4776 0.3751 0.2953 26 0.7720 0.5976 0.4637 0.3607 0.2812 27 0.7644 0.5859 0.4502 0.3468 0.2678 0.7568 0.5744 0.4371 0.3335 0.2551 0.7493 0.5631 0.4243 0.3207 0.2429 0.7419 0.5521 0.4120 0.3083 0.6717 0.2083 50 0.6080 0.3715 0.2281 0.1407 0.0291 28 29 30 0.2314 0.0105 0.0082 0.0064 0.0090 0.0070 0.0054 0.0019 0.0013 0.0010 0.0004 0.0003 0.0002 40 0.4529 0.3066 0.1420 0.0872 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) 10 11 0.3589 0.3418 0.0259 0.0218 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0087 0.0073 0.0061 0.0051 0.0042 0.0007 0.0001
Market Price What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. $
Transcribed Image Text:Market Price What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Effect Of Interest Rate
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Personal Finance
Personal Finance
Finance
ISBN:
9781337669214
Author:
GARMAN
Publisher:
Cengage
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS