1. Compute the yield to maturity of a 13 % coupon 3 year' maturity bond which was purchased at 960 Ł whose nominal value be repaid in equal instalments after a nonpayment period of one year.

Q: Compute the yield to maturity of a 19% coupon purchased for a 970± three-year bond whose principal…

A: The internal rate of return of the cash flow of buying and redemption of bond is the known as yield…

Q: Calculate the current yield and the yield to maturity

A: Excel Spreadsheet:

Q: (Bond valuation)  Calculate the value of a bond that matures in 15 years and has a $1,000 par…

A: The value of a bond is determined by calculating the present value of the coupon of the remaining…

Q: Find the price for a 7.5% coupon (paid on a semi-annual basis); $1,000 par value bond under the…

A: Face value= $1000 Coupon rate= 7.5%, semi annual= 3.75% Coupon payment= 1000 x 3.75%= $37.5   Bond…

Q: An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a price of…

A:

Q: Compute the intrinsic value of an 18% coupon, a 4-year maturity bond whose principal will be repaid…

A: Intrinsic value is the present value

Q: Assume a company-issued bond with 4,000 OMR face value in the muscat security market with 0.154…

A: Given: Face value = 4,000 Coupon rate = 15.4% YTM = 8% Years = 12

Q: . WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 10% on a…

A:

Q: Calculate the Macaulay duration and the modified duration of a three-year bond with a face value of…

A: Answer -    Macaulay Duration -  Macaulay duration is a weighted average of the times to receive the…

Q: Compute the intrinsic value of an 18% coupon, a 4-year maturity bond whose principal will be repaid…

A: Intrinsic value is calculated by present value of cash flows. Present value of cash flows = Cash…

Q: CEPS Group offers 7.25 percent coupon bonds with semiannual payments and a yield to maturity of 7.05…

A: Computation of the payments and semiannual yield to maturity: Excel computations: Worksheet…

Q: 1. Compute the yield to maturity of a 13 % coupon 3 year' maturity bond which was purchased at 960 t…

A: yield to maturity formula: YTM=coupon rate ×par+par - priceyearspar+price2

Q: Compute the yield to maturity of a 19% coupon purchased for a 970t three-year bond whose principal…

A: Yield to maturity is the internal rate of return offered by the cash flows of bond. Cash flow of…

Q: 1.Heather Corporation bonds have 7 years remaining to maturity. The bonds have a par value of…

A: The current yield of the bond can be calculated as ratio of annual coupon and the current market…

Q: A four-year maturity deep discount coupon corporate bond with a required rate of return (YTM) of 12…

A: A zero-coupon bond is an interest-free loan pledge whose transactions instead of interest at a low…

Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at…

A: formula for calculate yield to maturity     YTM = {coupon interest + (discount or premium / no of…

Q: Compute the yield to maturity of a 19% coupon purchased for a 970₺ three-year bond whose principal…

A: Bond is the long-term fixed security instrument. The income payment paid on the bonds is fixed…

Q: Calculate and interpret the Macaulay and modified durations of a 2-year semiannual coupon bond with…

A: The time it would take for the bondholder to recoup their investment through coupon payments and…

Q: Compute the duration of a 9% coupon, 4-year corporate bond with a yield to maturity of 8%.

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: Yield to call on a bond with a coupon rate of 8% paid semi-annually, 10 years to maturity, a par…

A: In the above question we need to compute the yield to call on a bond and select the correct option…

Q: Compute the yield to maturity of a 13 % coupon  3 year’ maturity bond which was purchased at 960 ₺…

A: The YTM is the rate that makes the present value of the future cash flows equal to the price of the…

Q: Garland Corporation has a bond outstanding $90 annual interest payment , a market price of $820, and…

A: Bonds are referred to as fixed-income instruments issued by companies as they traditionally pay a…

Q: Suppose a 19-year, 11% coupon bond selling for $1,233.64 is first callable in 6 years at $1,055.…

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

Q: Blue Co. holds the following bonds which all have a yield to maturity of 15% and matures in 10…

A: Coupon rate of XYZ = YTM of XYZ = 15% Face value = P 5000 Total return required on XYZ sale = 18%…

Q: Compute the intrinsic value of an 18% coupon ; a 4-year maturity bond whose principal will be repaid…

A: Intrinsic value is present value

Q: A company issued a 10-year Rp500 million bond that pays annual coupon 10% and records the bond…

A: Present Value of Bonds=Book Value of Bonds×PVIF+Annual Interest×PVAF

Q: 1. XYZ Corporation issued a 5-year bond with a par value of P25,000 and pays a semi-annual coupon of…

A: Nominal Yield: It refers to the rate of coupon of the particular bond. This the rate given by issuer…

Q: Bonds of Zello Corporation with a par value of $1,000 sell for $960, mature in five years, and have…

A: Bonds are the fixed rate debt instruments used by the government or corporate to raise funds from…

Q: Compute the yield to maturity of a 13 % coupon 3 year' maturity bond whích was purchased at 960…

A: The question is based on the concept of Bond valuation.

Q: Calculate the yieid to maturity of the corporate bond with a maturity value of $1000 and a coupon…

A: YTM is the rate of return a bond generates over its maturity period assuming that the coupons are…

Q: Compute the intrinsic value of a 16 % coupor ear maturity bond whose face value (1000E) e paid at…

A: intrinsic value of bond is present value of coupon payment +Present value of par value of bond.

Q: Bonds of Francesca Corporation with a par value of $1,000 sell for $960, mature in five years, and…

A: Current Yield refers to returns generated by bond in a year in proportion to market price of that…

Q: Compute the intrinsic value of an 18% coupon, a 4-year maturity bond whose principal will be repaid…

A: Intrinsic Value of Coupon = Present Value of Coupons + Present Value of principal repayment

Q: Determine the amount of semi-anual coupon paid for a 3% bond with a face value of 80,000 which…

A: Coupon Payment: It is the annual interest payment  received by a bondholder from the bond's issue…

Q: 1-annually, has 17 years remaining to maturity, and has a coupon rate of 6.00%. If the bond sells…

A: Yield To Maturity: It is the total rate earned for holding the bond till its maturity. This yield to…

Q: Blue Co. holds the following bonds which all have a yield to maturity of 15% and matures in 10…

A: Bond XYZ Coupon = Annual Rate * Face Value = 15%*5000 = 750 YTM = Annual Rate = 15% N = 10

Q: . WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 10% on a…

A: Duration of bond gives change in price of bond with change in market rate or required rate. Given:…

Q: Palmira Industries' outstanding bonds have a face value of $900, a semi-annual coupon of 7%, 10…

A: Face value = $ 900 Coupon rate = 7% Semi annual coupon amount = 900*0.07/2 = $ 31.50 Years to…

Q: Determine the amount of a semiannual coupon paid for a 3% bond with a face value of 75,000 pesos…

A: Face value= P 75000 Coupon rate = 3% Years to maturity = 12 Years

Q: ​(Bond valuation)  Calculate the value of a bond that matures in 13 years and has a $1,000 par…

A: Maturity period = p = 13 years Coupon rate = 0.13 or 13% Face value or maturity value = Q = $1,000…

Q: A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and face…

A: Zero coupon bond is a debt instrument which does not involve any coupon payment  and is issued below…

Q: Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest…

A: Bond is a debt instrument used to fund the operations of a business and act as a loan agreement…