- +1-530-264-8006
- info@tutorsglobe.com

Blb ltd has just issued a coupon growth bond with the

1. You are thinking about buying a rare collectible that costs $100,000. The dealer is proposing the following deal: She will lend you the money and you will repay the loan by making the same payment every three years for the next 30 years. If the interest rate is 6% p.a., compounded annually, the amount you will have to pay every three years is closest to:

a) $7,265.

b) $13,587.

c) $19,203.

d) $23,129.

2. BLB Ltd has just issued a “coupon growth bond” with the following terms. Each bond’s face (or maturity) value is $1,000 and the bonds will mature in 5 years’ time. Coupons will be paid on an annual basis at the end of each year. The first year’s coupon will be $100 at the end of year 1, which will then grow at an annual rate of 10% until the bonds mature. If the bond’s yield to maturity is 8% per annum, its price today should be closest to:

a) $972.

b) $1,080.

c) $1,161.

d) $1,275.

Expected delivery within 24 Hoursrs

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment
## Q : What is the best estimate of these bonds remaining

expected interest ratelloyd corporations 14 coupon rate semiannual payment 1000 par value bonds which mature in 30