I Need Help With The Following With All Work Shown Please Help How Do I Do This

/in /by

I Need help with the following with all work shown, please help. How do I do this?

Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other factors may influence the value of a bond?

Issuer Name – 21st Centry Fox

Symbol- NWS4230955

Callable – No

Sub-Product Type- Corporate Bond

Coupon – 7.750

Maturity- 12/01/2045

Price-  140.854

Yield -5.042

SolutionSince this is semi-annual, the annual coupon rate of 7.750% is equal to 3.875 semi-annually. The5% (as per instructions) required annual return is re-expressed as .25 (.025) semiannually…

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
ORDER NOW