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?
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
You might also like to view...
When you shop online, most retailers collect personal information about you.
Answer the following statement true (T) or false (F)
In the Stage-Gate® approach, ______.
A. Stage refers to the critical activities that need to take place once a product has been launched B. Stage refers to the critical activities that need to be completed to be in compliance with government regulations C. Stage refers to the critical activities that need to take place during a given stage of the project D. Stage refers to the critical activities that need to be completed to be in compliance with ISO regulations
Which of the following best defines a trial balance?
a. Trial balance is a listing of accounts and their balances at a specific point in time. b. Trial balance is a listing of accounts maintained by a company over a period of time. c. Trial balance is a listing of accounts' names at a specific point in time. d. Trial balance is a listing of accounts and their balances over a period of time.
What rate of return results in a present value of $432 for $250 received one year from now and another $250 received two years from now?
A) 9.89% B) 10.32% C) 10.94% D) 11.37%