3. Aboitiz Equity Ventüres issued a 7- P50,000 that pays a coupon of 8.47 annually. Investors required rate of re rate of 1.5%; inflation premium of 4.5

Q: What is the present value of the coupon payments? What is the present value of the face value of the…

A: Bond: It is a debt instrument issued by the bond issuer for raising capital from the investors. The…

Q: A P75,000, at 11% bond pays coupon semi-annually redeemable at P90,000 on January 13, 2017, is…

A: To find: Purchasing price

Q: Moffet Ltd. bonds mature in 6 yrs and hald a YTM of 8.5%. The par value of the bonds is $1000. the…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: A $2400, 8.9% bond with semi-annual coupons redeemable at par in 8 years was purchased at 95.6.…

A: Because it is assumed that the book value trends in a straight line from the start value to the end…

Q: Lepus has issued bonds of $100 nominnal value with annual interest of 9%per year, based on the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Determining Bond Premium or Discount Smith and Sons, Inc., decides to sell $1,000,000 in bonds to…

A: if coupon rate > market rate:sell at premiumcoupon rate < market rate: sell at discountcoupon…

Q: hocolate Comp $1.80, and company's payout ratio is 60%, and the stock is currently valued at $37.75.…

A: As per our guidelines, we are supposed to answer only 3 sub-parts ( if there are multiple sub-parts…

Q: The 8 percent annual coupon bonds of the ABC Co. are selling for $1,080.69. The bonds mature in 10…

A: cost of debt /YTM formula: YTM=coupon+par-pricenpar +price2 where, n=years to maturity

Q: On 1 july 2018 BMw ltd issues $2 million in 10 year debentures that pay interest each six months at…

A: 1)

Q: A 9,000 bond, redeemable at par, pays interest at 5% to yield the purchaser 4%, quarterly for 2…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: A 9-year bond pays interest of $26.20 semiannually, has a face value of $1000, and is selling for…

A: B0 = Interest * PVCF @ YTM for 18 periods + Maturity Value * PVF @ YTM for 18th period

Q: SOP Ltd bonds have a par value of $1,000. The bonds pay semi-annual interest of $40 and mature in 5…

A: Using Present value function in excel

Q: Gabriele Enterprises has bonds on the market making annual payments, with 15 years to maturity, a…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: ABC Manufacturing issues a $100,000 face value bond at a discount of $92,788, 5-year maturity, 10%…

A: Bond are issued at a discount to their face value when the market interest rates are higher than the…

Q: StormTech has S1,000 convertible bonds with a coupon rate of 10% paid annually, that has 10 years to…

A: Straight Value of bond = Present value of interest + Present value of maturity value  OR  Straight…

Q: dgar Ltd issues $7 million in 6-year, 10%, semi-annual coupon debentures. The rate of return…

A: Amortization: A process which involves writing down or reducing the value of intangible assets or…

Q: One year before maturity the price of a bond with a principal amount of $1,000 and a coupon rate of…

A: Given information: Principal amount is $1,000 Coupon rate is 5% Price of bond is $968 Number of year…

Q: SE9-2. Determining Bond Premium or Discount Los Altos, Inc., decides to sell $1,000,000 in bonds to…

A: Given: Quantum of bonds sold: $1,000,000 Annual Coupon Rate: 4% Frequency of coupon payment:…

Q: Torres Enterprises' non-callable bonds currently sell for $655.90. They have a 10 year maturity with…

A: Using excel PMT function, =PMT(rate,nper,pv,fv) Where rate = rate per period i.e. 12%/2 nper = no.…

Q: 7A-13. Vogril Company sold zero-coupon 20-year notes with a 9 percent projected yield to maturity.…

A: The correct option is  C. $90.00

Q: ST1. Scherr Enterprises has a series of 8 percent coupon bonds outstanding with a $1,000 par value.…

A: Using excel rate function to calculate the YTM  of the bond  After tax cost of debt = YTM *(1-tax…

Q: Piermont Clothing's current bond price is $1,060. The coupon rate 7%, coupons are paid semi-…

A: Using excel RATE function

Q: At the beginning of the year, Marshall Square, Inc. issued TA 2, 3 $100 million (maturity value) of…

A: Market value of Bond: It is the price at which you might sell a bond to another investor before the…

Q: Compute the value of Murphy’s Moving Company bonds if investors' required rate of return is 4.5%.

A: The value of the bond is the current price of the bond. It is the present value of the bond's coupon…

Q: ABC Co. can issue P1,000 par value bond that pays P100 per year in interest at a price of P980. The…

A: Bond price implies for the consideration paid by an investor for acquiring bond. In provided case,…

Q: The 8percent annual coupon bonds of the ABC Co. are selling for $880.76. The bondsmature in 10…

A: Face value= $1000 Selling price= $880.76 Coupon rate= 8%, semi annual= 4% time= 10 years

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: Kaiser industries have bonds on the market annual payment with 14 years to maturity and selling for…

A: Following details are given in the question: Current price (Present value) = $1382.01 Assume Par…

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: 7A-18. Schiffauer Electronics plans to issue 10-year, zero coupon bonds with a par value of $1,000…

A: Please find the answer to the above question below:

Q: A P75,000, at 11% bond pays coupon semi-annually redeemable at P90,000 on January 13, 2017, is…

A: A Bond is an instrument that represents the loan that is made by the investor to the company and…

Q: The 7percent annual coupon bonds of the ABC Co. are selling for $950.41. The bondsmature in 8 years.…

A: The cost of raising the funds through borrowing or the financing cost is termed as the required rate…

Q: Maxcorp’s bonds sell for $1,065.15. The bond life is 9 years, and the yield to maturity is 7%. What…

A: Formulas:

Q: A 75,000, at 11% bond pays coupon semi annually redeemable at 90,000 on January 13,2017, is bought…

A: Redemption Value is 90,000 Coupon rate is 11% Paid semi annually Interest rate is 13%, Compounded…

Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…

A: Given: Bond value= $1,000 Coupon rate = 10% Maturity period= 6 years Market price = $865

Q: Play store co issued 10 year bonds one year aho at a coupon rate of 2.4%. The bons make monthly…

A: Given: Year = 10 Coupon rate = 2.4% YTM = 4.8% Coupon payment is monthly.

Q: Too Young, Inc., has a bond outstanding with a coupon rate of 7.3 percent and semiannual payments.…

A: using excel rate function

Q: Paul Dirac & Associates begin operations on 1/1/X1 by issuing a 3.00 year term (Bullet) bond with a…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Finnigan Corporation has bonds that have 7 years to maturity. Interest is paid semi-annually. The…

A: Using Excel

Q: What is the annual coupaon rate rounded to 2 decimal places id ABC Inc. recently issued a 20-year…

A: Coupon = ? Time Period = 20 years × 2= 40 Semi Annual Periods Interest Rate = 9%÷2 = 4.5% per…

Q: Melekom Berhad has 16 years to maturity bond with a RM1,000.00 par value. The bond pays RM7S.00 a…

A: Note: Here it is assumed that the Interest amount is RM75 per year and the selling price is RM550.…

Q: The 8 percent annual coupon bonds of the ABC Co. are selling for $1,080.69. The bonds mature in 10…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: The 7 percent annual coupon bonds of the ABC Co. are selling for $950.41. The bonds mature in 8…

A: Yield to maturity is the rate of return a bond generates in its lifetime assuming to be held till…

Q: P1,000 face-value bond with coupon rate of 8% paying interest semi-annual arket price of P1,050.…

A: Interest on bond will be calculated on face value. Interest amount =face value*interest rate…

Q: 3. Muzungu Ltd has a K1,000 12% bond with three years to maturity.Coupon payments are made…

A: Par value = K 1000 Coupon rate = 12% Coupon amount = 1000*0.12 = K 120 Years to maturity = 3  Years…

Q: year maturity date. The coupon rate is 8%, and interest is paid quarterly. The required nominal…

A: Bond price is the current discounted value of a bond's future cash stream.