A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount.The bond is now priced at $925. What would the bond's price be in five years if the yield to maturity is the same as it is now? a. $ 966.79 b. $ 831.35 c. $1,090.00 d. $ 933.09 e. $ 925.00

Q: A company issues a ten-year bond at par with a coupon rate of 6.8% paid semi-annually. The YTM at…

A: Par value = $ 1000 Coupon rate = 6.8% Semi annual coupon amount = 1000*0.068/2 = $ 34 Years to…

Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…

A: A bond is borrowing security that is issued by the company in order to raise funds from the market…

Q: A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one…

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

Q: A $3,500,000 issue of a 30-year bond, redeemable at par, offers 9.00% coupons payable semi-annually.…

A: The question is based on the concept of Financial Accounting.

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: our yield to maturity on the Abner bonds is _____​%.​(Round to two decimal​ places.)

A: Information Provided: Years to maturity = 16 Coupon Interest Rate = 12% Bond price = $800 Par Value…

Q: A P1,000 bond which will mature in 10 years and with a bond rate of 8% payable annually is to be…

A: Face value (F) = P 1000 n = 10 years Coupon = 8% of 1000 = P 80 Let r = YTM

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: An 8 year , $10,000 bond paying a coupon rate of 5.50% compounded semi-annually was purchased at…

A: Using the rate function for YTM calculation

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 $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: Charlotte's Clothing issued a 8 percent bond with a maturity date of 18 years. Six years have passed…

A: The price of a bond is the amount of money that investors are willing to pay for an existing bond.

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: The 12​-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The​ market's required yield to…

A: Par value of bond (F) = $ 1000 Coupon rate = 13% Coupon amount (C) = 1000*0.13 = $ 130 Number of…

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

A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence,…

Q: A 5.5 percent corporate coupon bond is callable in four years for a call premium of one year of…

A: Callable bonds are the bonds which the issuers can redeem or paid before its due maturity date.

Q: A $15,000, 5.5% bond is purchased 10.5 years before maturity to yield 8% compounded annually. If the…

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

Q: A $100 bond with annual coupons at 5% for the first 10 years and coupons at 4% for the next 5 years…

A: Working note:

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: (Please use Excel) Company A's bonds pay interest annually at $80, with a par/par value of $1,000.…

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

Q: The 12​-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The​ market's required yield to…

A: Par value of bond = $ 1000 Coupon rate = 13% Annual coupon amount  = 1000*0.13 = $ 130 Years to…

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: MMB iss

A: Yield to maturity is the current interest rate of the bond which is used for discounted the bond's…

Q: Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.…

A: Solution Given Annual interest 98 Market value 870 Years to maturity 5 Par…

Q: An 8% annual bond with a par value of $1,000, fifteen years to maturity, and a current price of $850…

A: Par value = $1000 Coupon rate = 8% Coupon amount = 1000*0.08 = $ 80 Years to maturity = 15 Years…

Q: A 9 percent annual premium is paid on a 10-year corporate bond. At the time of writing, the bond is…

A: Given, Interest rate = 9% per annum Price = $ 1000 = Face value   YTM when bond is sold at par =…

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: Determine the present worth if the bond pays 12% compounded annually?

A: The present worth can be found using the PV Function in excel. PV = (RATE, NPER, -PMT, -FV, 0) RATE…

Q: Applied Software has a $1,000 par value bond outstanding at 12 percent interest. The bonds will…

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

Q: A 10%, 25 year bond with a par value of $1,000 pays on an annual basis has a current call feature…

A: Yield to maturity(YTM) is the return that the investor expects to receive from the bond by holding…

Q: A $6,500,000 issue of a 30-year bond, redeemable at par, offers 9.50% coupons payable semi-annually.…

A: Face value = $6,500,000 Maturtiy  =30 years ; But bond purchased 25 years before maturity So, time…

Q: -year bond with semi-annual coupons is purchased to yield j2 = 8%. The absolute value of the…

A: The coupon rate is equal to the yield to maturity if the bond's acquisition price is equal to its…

Q: A P100,000, 10% bond pays dividend every quarter for 8 years. The bond is priced at par and is…

A: The par value of bond us P100,000 Number of years to maturity 8 years

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

A: The bond's value or the price can be computed as the sum of the bond's coupons and principal after…

Q: The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until…

A: Given, Face Value = $1000 Coupon rate = 7% Coupon payment = $1000*7% = $70 Current Price = $1095…

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: value bonds pay14 percent interest annually. The market price of the bonds is $950 and the market's…

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

Q: Charlotte's Clothing issued a 8 percent bond with a maturity date of 18 years. Six years have passed…

A: Current Yield is the annual return on the current market price. Yield To Maturity is the rate of…

Q: Company A issues a 20-year 4% p.a. semi-annual coupon bond, face value of $2,000. 5 years after…

A: Calculate the coupon amount by multiplying the face value of the bond which is $2,000 with the…

Q: The market price is ​$850for a 16​-year bond ​($1,000 par​ value) that pays 11 percent annual​…

A: Yield to maturity refers to the concept which is defined as the internal rate of return which is…

Q: A $140,000 bond bearing interest at 7% payable annually is bought five years before maturity to…

A: Bond value is the discounted value of the expected cash flow the bond will generate till the…

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

A: Formula to calculate yield to maturity:YTM=C+FV-PVnFV+PV2×100r= rate of returnC= Coupon paymentn=…

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…

Q: A bond has the following terms: Principal amount $1,000 Semi-annual interest $45 Maturity 15…

A: BOND PRICE FORMULA: PRICE=P1+RN+INTEREST×1-11+RNR

Q: A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount. The bond is now…

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