Objective type question based on bonds and their valuation
Determine the value of a $1000 denomination Bell South bond with a 7% coupon rate maturing in 20 years for an investor whose required rate of return is:
a.) 8%
b.) 7%
c.) 5%
Consider Allied Signal Corporation\'s 9 7/8% bonds that mature on June 1, 2010. Assume the interest on these bonds is paid and compounded annually. Determine the value of a $1000 denomination Allied Signal Corporation bond as of June 1, 2004, to an inestor who holds the bond until maturity and whose required rate of return is:
a.) 7%
b.) 9%
c.) 11%
What would be the value of the Allied Signal Corporation bonds at an 8 % requirement rate of return if the interest were paid and compounded semiannually?
Southern Bell has issued 4 3/8% bonds that mature on August 1, 2011. Assue that interst is paid and compounded annually. Determine the yield to maturity if an investor purchases a $1000 denomination bond for $853.75 on August 1, 2004.