App Store Co. issued a 17-year bonds one year ago at a coupon rate of 6.3 percen
ID: 2737919 • Letter: A
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App Store Co. issued a 17-year bonds one year ago at a coupon rate of 6.3 percent. the bonds make semiannual payments ndo Module Self-Tests/Quizze M Module 6: Problems Self-... mheducation.com/hm.tpx?-=0.682070480684 7337-14672 13077032 connect FINANCE Problems (Self-Test) KQuestion 1 (of 3) App Store Co. issued 17-year bonds one year ago at a coupon rate of 6.3 percent. The bonds make semiannual payments. Required: f the YTM on these bonds is 5.5 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16)-) Current bond price Tunes 29Explanation / Answer
Time left for Maturity is 16 Years Current Bond pirce is 1,084.40 Statemnet showing Price or Intrinsic Value Particulars Time PVf @2.75% Amount PV Cash Flows (Interest) = 1000 * 6.3%/2 0.50 0.9732 31.50 30.66 Cash Flows (Interest) = 1000 * 6.3%/2 1.00 0.9472 31.50 29.84 Cash Flows (Interest) = 1000 * 6.3%/2 1.50 0.9218 31.50 29.04 Cash Flows (Interest) = 1000 * 6.3%/2 2.00 0.8972 31.50 28.26 Cash Flows (Interest) = 1000 * 6.3%/2 2.50 0.8732 31.50 27.50 Cash Flows (Interest) = 1000 * 6.3%/2 3.00 0.8498 31.50 26.77 Cash Flows (Interest) = 1000 * 6.3%/2 3.50 0.8270 31.50 26.05 Cash Flows (Interest) = 1000 * 6.3%/2 4.00 0.8049 31.50 25.35 Cash Flows (Interest) = 1000 * 6.3%/2 4.50 0.7834 31.50 24.68 Cash Flows (Interest) = 1000 * 6.3%/2 5.00 0.7624 31.50 24.02 Cash Flows (Interest) = 1000 * 6.3%/2 5.50 0.7420 31.50 23.37 Cash Flows (Interest) = 1000 * 6.3%/2 6.00 0.7221 31.50 22.75 Cash Flows (Interest) = 1000 * 6.3%/2 6.50 0.7028 31.50 22.14 Cash Flows (Interest) = 1000 * 6.3%/2 7.00 0.6840 31.50 21.55 Cash Flows (Interest) = 1000 * 6.3%/2 7.50 0.6657 31.50 20.97 Cash Flows (Interest) = 1000 * 6.3%/2 8.00 0.6479 31.50 20.41 Cash Flows (Interest) = 1000 * 6.3%/2 8.50 0.6305 31.50 19.86 Cash Flows (Interest) = 1000 * 6.3%/2 9.00 0.6137 31.50 19.33 Cash Flows (Interest) = 1000 * 6.3%/2 9.50 0.5972 31.50 18.81 Cash Flows (Interest) = 1000 * 6.3%/2 10.00 0.5813 31.50 18.31 Cash Flows (Interest) = 1000 * 6.3%/2 10.50 0.5657 31.50 17.82 Cash Flows (Interest) = 1000 * 6.3%/2 11.00 0.5506 31.50 17.34 Cash Flows (Interest) = 1000 * 6.3%/2 11.50 0.5358 31.50 16.88 Cash Flows (Interest) = 1000 * 6.3%/2 12.00 0.5215 31.50 16.43 Cash Flows (Interest) = 1000 * 6.3%/2 12.50 0.5075 31.50 15.99 Cash Flows (Interest) = 1000 * 6.3%/2 13.00 0.4939 31.50 15.56 Cash Flows (Interest) = 1000 * 6.3%/2 13.50 0.4807 31.50 15.14 Cash Flows (Interest) = 1000 * 6.3%/2 14.00 0.4679 31.50 14.74 Cash Flows (Interest) = 1000 * 6.3%/2 14.50 0.4553 31.50 14.34 Cash Flows (Interest) = 1000 * 6.3%/2 15.00 0.4431 31.50 13.96 Cash Flows (Interest) = 1000 * 6.3%/2 15.50 0.4313 31.50 13.59 Cash Flows (Interest) = 1000 * 6.3%/2 16.00 0.4197 31.50 13.22 Cash flows (Maturity Amount) 16.00 0.4197 1,000.00 419.74 Intrinsic Value of Bond or Current Bond Price 1,084.40
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