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    Problem Set-Bond Valuation Problemsasdad

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    Jerauld Bucol
    This document contains a problem set with 7 bond valuation problems provided by an instructor. The problems involve calculating the price of bonds with different face values, maturities, coupon rates, and discount rates. Solutions to the problems are not shown, with the section for solutions containing only blank lines for the student to fill in their work.

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    © All Rights Reserved
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    Problem Set-Bond Valuation Problemsasdad

    Uploaded by

    Jerauld Bucol
    96 views4 pages
    This document contains a problem set with 7 bond valuation problems provided by an instructor. The problems involve calculating the price of bonds with different face values, maturities, coupon rates, and discount rates. Solutions to the problems are not shown, with the section for solutions containing only blank lines for the student to fill in their work.

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    This document contains a problem set with 7 bond valuation problems provided by an instructor. The problems involve calculating the price of bonds with different face values, maturities, coupon rates, and discount rates. Solutions to the problems are not shown, with the section for solutions containing only blank lines for the student to fill in their work.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    96 views4 pages

    Problem Set-Bond Valuation Problemsasdad

    Uploaded by

    Jerauld Bucol
    This document contains a problem set with 7 bond valuation problems provided by an instructor. The problems involve calculating the price of bonds with different face values, maturities, coupon rates, and discount rates. Solutions to the problems are not shown, with the section for solutions containing only blank lines for the student to fill in their work.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Larry Schrenk, Instructor

    Problem Set: Bond Valuation Problems


    (Solutions Below)

    Bond Valuation Problems

    1. What is the price of the following bond?

    face value: $1,000

    maturity: 10 years

    coupon rate: 8%

    discount rate: 9%

    2. What is the price of the following bond?

    face value: $1,000

    maturity: 50 years

    coupon rate: 10%

    discount rate: 12%

    3. What is the value of the following semi-annual bond?

    face value: $1,000


    maturity: 10 years

    coupon rate: 10%

    discount rate: 9%

    4. What is the value of the following semi-annual bond?

    face value: $1,000

    maturity: 9.5 years

    coupon rate: 7%

    discount rate: 7%

    5. What is the value of the following semi-annual bond?

    face value: $1,000

    maturity: 20 years

    coupon rate: 9%

    discount rate: 10%

    6. What is the price of the following quarterly bond?

    face value: 1,000

    maturity: 10 years

    coupon rate: 10%

    discount rate: 8%

    7. What is the price of the following semi-annual bond?

    face value: $1,000

    maturity: 10 years
    coupon rate: 8%

    discount rate: 9%

    Solutions

    1.

    2.

    3.

    4.

    Since coupon rate = discount rate, this must be a par value


    bond, and the price is $1,000, or…

    5.
    6.

    7.

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