9. You have just purchased a 15-year, P1,000 par value bond. The coupon rate on this bond is nine percent (9%) annually, with interest being paid each six months. If you expect to earn a 12 percent market rate of return on this bond, how much did you pay for it? a. P793.53 b. P642.76 c. P950.75 d. P875.38

Q: 1. A 12-year bond has a 9 percent annual coupon, a yield to maturity of 8 percent, and a face value…

A: 1) Face value (F) = P 1000 r = YTM = 8% n = 12 years Coupon (C) = 9% of 1000 = P 90

Q: The 4-year bond with a nominal value of 1.000 TL pays coupons once a year. It is known that the…

A: Formula to calculate price of the bond is: Bond Price =C×1-1+r-nr+FV(1+r)nWhere,n =number of Period…

Q: Your client is considering the purchase of a bond that is currently selling for $1112.09.  The…

A: The bonds can be defined as the units of corporate debt, the companies issue the bond and…

Q: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…

A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel

Q: 63. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4…

A: The real coupon rate is equal to nominal coupon rate minus inflation rate

Q: William Motors's bonds have 25 years remaining to maturity. Interest is paid annually, they have a…

A: Value of the bond is present value of cash flows

Q: Three years ago, you purchased a bond for $974.69. The bond had three years to maturity, a coupon…

A: Calculating the future value of the bonds received and reinvested-

Q: 1. What is the price of a $1,000 bond with a coupon payment of $50 annually if the bond matures in 2…

A: The price of the bond is equal to the present value of all the future coupon payments from the bond…

Q: A. You are offered to buy a 4-year coupon corporate bond in the beginning of its 7th month on its…

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

Q: What is the price of the bond? b. If the rate of interest increases 1 percent, what will be the…

A: NOTE: As per our policy, we only answer up to three sub-questions. Therefore the first three…

Q: You own a $1,000 par value bond with 20 years to maturity that is paying an annual coupon rate of…

A: Price=Coupon Payment×1-1+YTM-nYTM+Face Value1+YTMn

Q: You have just purchased a 15-year, P1,000 par value bond. The coupon rate on this bond is nine…

A: The bond price can be calculated as the present value of bond cash flows.

Q: A bondholder owns 15-year government bonds with a $5 million face value and a 6 percent coupon that…

A: Correct answer is option (c) -27,571.

Q: 1. Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream…

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

Q: James' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity.…

A: Yield to maturity helps to determine the total return that the investors of the bond get. The…

Q: 2. Rick bought a 30-year bond when it was issued by Macroflex Corporation 8 years ago. The bond has…

A: The question is based on the concept of Bond Valuation. As per Bartleby guidelines we are allowed to…

Q: what is the bond rate of return over the year?

A: Bond Rate of Return: It refers to the gain or loss of a security/investment for a certain period.…

Q: What is the value of a bond that has a 10 percent coupon, pays interest semiannually, and has 10…

A: Coupon Rate (C)= 10% or 0.1 Time Period (n)= 10 Years Yield to Maturity(Y) = 12% or 0.12 No. of…

Q: You have just been offered a $1,000 par value bond for $847.88. The coupon rate is 8 percent,…

A: The number of interest payments also depicts the time i.e., how long the interest will be received…

Q: The company you work for is offering bonds that have a face value of $1,000 and a life of 10 years.…

A: Effective annual interest rate Effective annual interest rate defines the real return on investments…

Q: 50.75 c. P875

A: Answer - Option a -  P793.53 Working Given  Par Value = P 1,000 Coupon Rate = 9% annually or 4.5 %…

Q: Consider a 24-year, 8.1% coupon rate, $1,000 face value bond that pays quarterly coupons. How much…

A: Face Value…

Q: Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and…

A: Face Value of the Bond=$1,000 Duration (n)=8*2=16 periods Coupon rate=8.5% Thus, Periodic coupon…

Q: What will be its selling price in two years if comparable market interest rates drop 1.9 percentage…

A: Par value = $1000 Coupon rate = 9.9% Current bond price - $980 YTM = 8% [9.9% - 1.9%] Maturity = 15…

Q: 4. The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 8 percent…

A: The zero-coupon bonds are the bonds issued at no coupon interest. The investor earn from the bonds…

Q: 2. You are purchasing a 19.5-year, zero-coupon bond. The yield to maturity is 6.51 percent compound…

A: GIVEN, n=19.5 years ytm=6.51% par=$1000 m=2

Q: Today is January 1, 2003 and you just purchased a 7-year, zero coupon bond with a face value of…

A: given, rate = 6% par = $1000 n = 7 tax = 30%

Q: You purchase a bond with an invoice price of $1,041. The bond has a coupon rate of 5.63 percent, it…

A: Accrued Interest = Par value * coupon interest rate/2 * (6-time to next coupon payment )/ 6 =…

Q: 4.   You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. What is…

A: The holding period rate of return would be calculated by using the following formula:Rate of…

Q: You purchased a bond for 1,100. The bond has a coupon rate of 9 percent, which is paid semiannually.…

A: Given: Current price = 1,100 Coupon rate = 9% Years = 17 Par value = 1,000

Q: Consider a 19-year, 3.6% coupon rate, $1,000 face value bond that pays annual coupons. If the bond's…

A: Using excel PV function

Q: If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is A.…

A: In the given question we are required to calculate the coupon payment every year on following bond:…

Q: BEST Company bonds are yielding 12% and will mature in 10 years from now. The coupon rate is 14% and…

A: Price of bond = Coupon Amount * PVAF ( Semi annual rate, Number of periods) + Face value * PVIF (…

Q: Suppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual…

A: Present value of an annuity refers to the current value of annuity payments to be made in the future…

Q: A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $871.65. Compute your…

A: Rate of return = [(Ending value + coupon - beginning value) / beginning value] * 100

Q: 2. You have just purchased a newly issued $1,000 five-year Troshani Company bond at par. This…

A: Yield to Maturity: In the case of a bond, the yield to maturity (YTM) is the percentage rate of…

Q: Today, you just paid $924.22 to buy a semiannual bond with 6 years to maturity. This bond carries 4%…

A: Bond's Yield or YTM (yield-to-maturity) implies the annual return that potential bond investor can…

Q: 4) A four-year bond has an 8 percent coupon rate and a face value of $1,000. If the current price of…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: A twenty-year government bond with a face value of 120$ makes annual coupon payments of 1% and…

A: Bonds: These are the money market instruments that generate fixed income for the bondholders. These…

Q: Rogoff Co.'s 15-year bonds have an annual coupon rate of 9.5%. Each bond has face value of $1,000…

A: Bonds are debt instruments issued by a company. The company that issues the bond pays a periodic…

Q: Yesterday you paid S1000 for a 6% coupon, $1000 face value 5-ycar bond. It is callable at the end…

A: Price of bond = present value of coupon and principal  P = I(1-(1+r)-p)/r + F/(1+r)P Where, I =…

Q: A. you offered to buy a 4 year coupon corporate bond in the beginning of its 7th monthon its third…

A:

Q: Three years ago you purchased a 7% coupon bond that pays semiannual coupon payments for $962. What…

A: Bond equivalent yield  formulae is                         Face value-Purchase price/purchase price…

Q: 4. SAU Co., recently issued a 10-year bond with a face value of P50,000 with a coupon rate of 8%…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: You have just been offered a $1,000 par value bond for $847.88. The coupon rate is 8 percent,…

A: Here the market interest rate is greater than the coupon rate, so its a discount bond.