Part 1: Oil Well Supply offers a 6 percent coupon bond with semiannual payments

Question

Part 1: Oil Well Supply offers a 6 percent coupon bond with semiannual payments and a yield to maturity of 6.73 percent. The bonds mature in 9 years. What is the market price per bond if the face value is $1,000? A) $951.31 B) $1,352.04 C) $1,351.47 D)$951.89 E) $1,107.60 Part 2: Redesigned Computers has 7 percent coupon bonds outstanding with a current market price of $873.35. The yield to maturity is 8.34 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? A) 20 years B) 21 years C)19 years D)18 years E) 27 years

Explanation / Answer

The current price is $957.04. Here is the online calculator that does the work for you: http://www.zenwealth.com/BusinessFinance…

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