3 years ago you bought a corporate bond that pays 5.8%. The purchase price was $1,000. What is the annual dollar amount of interest that you recieve from your bond investment?
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3 years ago you bought a corporate bond that pays 5.8%. The purchase price was $1,000. What is the annual dollar amount of interest that you recieve from your bond investment?
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.
- Three years ago, you purchased a corporate bond that pays 5.8 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment?$52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested in the account, how much will the bond be worth in 5 years? Round your answer to the nearest dollar.You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. The bond pays interest annually. If your marginal tax rate is 30%, and 50% of capital gains are taxable, what is the after-tax rate of return on your bond investment?
- Suppose that someone owns a 30 year $14,000 T-bond with a rate of 6%. After five years the bond is sold for cash, but the interest rates have risen to 8.5%. (a)How much has the bond paid in total for the first five years? (b)How much will the bond pay the person buying it over the next 25 years? (c)How much is the bond currently worth?Calculate the realized rate of return earned on a bond bought five years ago for $833 which is now selling for $900 and it also paid $50 in interest per year, which was reinvested in the bond.You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are 11.25%, what is the present value of your bond?
- hi, this is my hw question. You bought a bond five years ago for $880 per bond. The bond is now selling for $920. It also paid $60 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bondSeven years ago Barbour Bakeries issued 20-year bonds to fund a portion of its capital investments. Today it will cost $1,101 to purchase one of these 6.0% coupon (paid semiannually), $1,000 face value bonds. If you invest in a Barbour bond, what yield do you expect to earn on your investment?A savvy investor paid $6000 for a 20-year $10,000 mortgage bond that had a bond interest rate of 8% per year, payable quarterly. Three years after he purchased the bond, market interest rates went down, so the bond increased in value. If the investor sold the bond for $11,500 three years after he bought it, what rate of return did the investor make (a) per quarter, and (b) per year (nominal)?
