Sail Fish Corporation's zero coupon bonds have a par value of $1,000 and mature in 16 years. If investors require a yield to maturity of 4.56%, How much should these bonds sell for? $520.09 $486.07 $456.90 $554.12 $534.67 Stingray Corp has a bond issue outstanding that pays an 8.5 percent coupon and matures in 18.5 years. The bonds have a par value of $1,000 and a market price of $946.20. Interest is paid semiannually. What is the yield to maturity? 8.56% 8.90% 8.29% 9.11% 8.74%

Sail Fish Corporation's zero coupon bonds have a par value of $1,000 and mature in 16 years. If investors require a yield to maturity of 4.56%, How much should these bonds sell for? $520.09 $486.07 $456.90 $554.12 $534.67

Sail Fish Corporation's zero coupon bonds have a par value of $1,000 and mature in 16 years. If investors require a yield to maturity of 4.56%, How much should these bonds sell for? $520.09 $486.07 $456.90 $554.12 $534.67

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 15P

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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

Question

Sail Fish Corporation's zero coupon bonds have a par value of $1,000 and mature in 16 years. If investors require a yield to maturity of 4.56%, How much should these bonds sell for?

	$520.09
	$486.07
	$456.90
	$554.12
	$534.67

Stingray Corp has a bond issue outstanding that pays an 8.5 percent coupon and matures in 18.5 years. The bonds have a par value of $1,000 and a market price of $946.20. Interest is paid semiannually. What is the yield to maturity?

	8.56%
	8.90%
	8.29%
	9.11%
	8.74%

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