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
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
You might also like to view...
If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except:
A. Net income. B. Current assets. C. Cost of goods sold. D. Net sales. E. Gross profit.
In Troix City, the learning rate is based on a tripling of output instead of the traditional doubling. The first unit of a long production run was produced in 25 hours. The process has an estimated learning rate of 80 percent
How long will the 9th unit take to produce? A) 22 hours B) 20 hours C) 18 hours D) 16 hours
When market interest rates go up investors demand ________ returns on other types of investments and when market interest rates go down, the return investors demand on other types of investments ________
A) lower; goes down B) higher; goes down C) lower; goes up D) higher return; goes up
Unknown hazards products liability cases involve:
a. a small number of products liability cases b. only cases involving asbestos c. the largest dollar volume of products liability cases d. cases in which the government is the defendant e. cases in which the government is the plaintiff