A 12,000 bond redeemable at par in 20 years pays interest at 3 ½% compounded quarterly. Find the purchase price to yield 4% m=4. (Bond Valuation)

Q: A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded…

A: Par value (FV) = $30,000 Coupon rate  = 3% Quarterly coupon amount (C) = 30,000*0.03/4 = $225 Years…

Q: A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.1% paid…

A: Computation:

Q: A Php 100,000,10% bond pays dividend every quarter for 8 years. The bond price at par and is…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: What is the yield to maturity for a seven-year bond that pays 11% interest on a $1000 face value…

A: Calculation of yield to maturity (YTM): Excel spread sheet:

Q: Clancey Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The…

A:

Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…

A: To calculate the bond price we will use below formula   Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…

Q: 20,000 issue of twelve​-year bonds redeemable at par offers 7.9% coupons payable quarterly. What is…

A: Price of bond is present value of coupon payment and present value of the par value of bond…

Q: A 20,000, 1 ½% bonds with annually coupons are priced to yield 4 ½% converted annually. If it is…

A: Face value = 20,000 Coupon rate = 1.50% Yield rate = 4.50% Redemption to face value ratio = 104%…

Q: A $15,000 bond pays interest at 3.7% compounded semi-annually and is redeemable in 12 years. The…

A: YTM formula: YTM=2×Coupon+par-pricenpar+price2

Q: payment of 1 for

A: The correct is ..  d)     A bond can be issued at premium or discount based on the market interest…

Q: A $10000 15-year bond is priced to yield at 12% compounded quarterly. It has quarterly coupons of…

A: Face Value = $10,000 Time Period = 15 Years Yield = 12% compounded quarterly

Q: Bonds issued by Fresh Farm Company have a par value of $1,000, which is also the amount of principal…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8%…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: A S25,000,7% bond redeemable at par with interest payable annually is bought 5.5 years before…

A: Bond is the debt financial instrument form investor to borrower.

Q: ​(Yield to​ maturity)  Hoyden​ Co.'s bonds mature in 18 years and pay 9 percent interest annually.…

A: Par Value is $1,000 Coupon rate is 9% Purchase price is $1,225 Time to maturity is 18 years To Find:…

Q: A $3,000,000 issue of a 30-year bond, redeemable at par, offers 7.00% coupons payable semi-annually.…

A: Bond value is the present value of all the expected cash flow a bond will generate if held till…

Q: Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for $4,940 and…

A: Given information: Face value of bond is $1,000 Coupon rate is 8% Yield is 6% Number of years is 6

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: Allington Corp. issues $560,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: A 15,000, 5 ½% bonds with quarterly coupons is priced to yield 4 ½% converted quarterly. If it is…

A: The question is based on the concept of Bond valuation and pricing. The price of a bond is…

Q: A bond pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the…

A: Annual dividends (D) = $110 Duration (n) = 20 years Interest rate (r) = 12% Bond price = 1546 Let…

Q: A 12,000 bond redeemable at par in 20 years pays interest at 3 ½% compounded quarterly. Find the…

A: Par value (FV) = 12000 Coupon rate rate = 3.50% Quarterly coupon payment (c) = 12000*0.035/4 = 105…

Q: The Lo Sun Corporation offers a 5.3 percent bond with a current market price of $858.50. The yield…

A: Given:

Q: Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10 percent annual interest.…

A: Using excel PV function

Q: nd pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the face…

A: In this we need to calculate the face value of bond.

Q: A S9,000, 10% bond redeemable at par in two years with semi-annual coupons is purchased to yield 8%…

A: Bonds: Bonds are investment securities where an investor lends money to a company or a government…

Q: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at…

A: Bond valuation is done using the concept of present value. Bond valuation is done by discounting all…

Q: A 12,000 5% bond with quarterly coupon is priced to yield 5% and redeemable at 110 at the end of 8…

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

Q: Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10 percent annual interest.…

A: Working note:

Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…

A: Par value = P1000 Coupon rate = 5% Coupon amount = 1000*0.05 = P50 Years to maturity = 10 Years Bond…

Q: If a $ 3.000, 12% semiannual bond is purchased for $3,100 and sold 5 years later for $2.900. What…

A: Purchase price (P0) = $3100 Selling price (P1) = $2900 n = 5 years = 20 quarters Total coupons…

Q: A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: d purchase price of a 7%, m=2, Php 15,000 bond

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: A bond that matures in 6 years has a par value of $1,000, an annualcoupon payment of $80, and a…

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: A corporation’s 18-year bond with 6% par value of 1,000/= paying interest semi-annually and is…

A: Bonds are the debt security which is offered or issued by the corporates or the government to…

Q: At the beginning of current year, Marble Co. issued 10-year bonds with a face amount of P 5,000,000…

A: Total PV of bonds at the time of issuance = PV of Annual Interest Payments + PV of Redemption Value…

Q: A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6…

A: Selling price of the bond is the market price for which a bond will be sold off. The selling price…

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: Compute the selling price of 10%, 15-year bonds with a par value of $240,000 and semiannual interest…

A: Bond: It can be defined as a financial instrument of indebtedness that reflects a loan made by the…

Q: A 10-year $1,000 bond pays a nominal rate of9% compounded semi-annually. If the market interest rate…

A: If the cash flows are adjusted for the inflation then they are known as cash flows in constant…

Q: A $10,000 bond (face value) with 76 interest payable quarterly is purchased for $7000. If the bond…

A: The return (whether it is a loss or gain) on a investment for a particular period of time span is…

Q: A Php 50,000 bond with rate of 8% annually pays dividend quarterly is redeemable at par at the end…

A:

Q: A $85,000, 8.50% bond redeemable at par, with annual coupon payments, is purchased 8 years before…

A: Bond value is the value of a bond measured on the basis of the present value of all the expected…

Q: A bond pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the…

A: Given, The dividend is $110. Maturity period is 20 years. Price of the bond is 1,459. Interest rate…

Q: . A Php14,000 , 7% bond payable quarterly is priced to yield 8%, m=4 and redeemable at par at the…

A: The purchase price of a bond comprises of the real value of all coupon payments and maturity value…

Q: A ten-year 3% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The par…

A: Par value (FV) = 1000 Coupon rate = 3% Semi annual coupon amount (C) = 1000*0.03/2 = 15 Years to…