A 9,000 3 ½% bond with monthly coupon is priced to yield 5% and redeemable at par at the end of 10 years. FIND THE BOOK VALUE ON THE 4TH PERIOD. A. 7,966.82 B. 7,959.91 C. 7,973.77 D. 7,980.74

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: The provided information are: Face value (M) = $1000 Maturity periods (n) = 15 years Periodic coupon…

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: 4-3. A 1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to…

A: Par value = 1500 Coupon rate = 15% Annual coupon amount = 1500*0.15 = 225 Years to maturity = 10…

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

A: In the given question we require to calculate the price paid to bond holder if issuer calls the…

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: ABC Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment…

A: Par value of bond (FV) = $1000 Annual coupon amount (C) = $70 Years to maturity (n) = 7 Years Market…

Q: Find the price if the bond is redeemable at par at the end of (a) 10 years; (b) 15 years; (c) 20…

A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

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: What is the Macaulay Duration of a 9.5% annual coupon bond with 3 years to maturity, $1,000 face…

A: Duration is a measure of how sensitive a bond's price is to fluctuations in the market interest…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Bonds are the long-term debt instruments of any business which carry a fixed rate of return, and…

Q: A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for…

A: Bonds are debt instruments that are issued by financial institutions to raise debt capital from the…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Price of bond is equal to present value of cash flows

Q: A very stable and solvent company issued P10, 000.00, 8% debenture bonds for P10,700.00. If the bond…

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

Q: SAM Co., issued a 10 year bond with a face value of ₱50,000 with a coupon rate of 10% that will be…

A: Here, Face Value of Bond is P50,000 Bond is quoted at 85 currently that means Current Price is:…

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: Q.A $1000 bond with semi-annual coupons is redeemable for $1030 in 5 years. The write-down (book…

A: Bond valuation is the fair value of a bond, the valuation of the bond is done on the concepts of…

Q: A 10,000 bond wit interest at 6% payable quarterly is bought to yield 4 ½% converted quarterly. On a…

A: Face value of bonds  10,000.00 Carrying value of bonds  11,000.00 Cash interest Payable (10,000…

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: An 8% corporate bond with a face value of P100,000 matures in 5 years. The yield to maturity is 7%…

A: Current price of the bond is the present value of all future cash flows associated with the bond.…

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: Yield to call on a bond with a coupon rate of 8% paid semi-annually, 10 years to maturity, a par…

A: In the above question we need to compute the yield to call on a bond and select the correct option…

Q: A $1000 bond with 8% annual coupons matures in 3 years at $1100. It is purchased at a price to yield…

A: Modified Duration of bond is an concept of rate of change of bond price with respect to yield.…

Q: Find the Modified duration of the bond if it sells for $1,025.30.

A: Modified Duration: It is a formula that provides an expression of the calculable change in the…

Q: 7-1- BOND VALUATION Madsen Motors’s bonds have 23 years remaining to maturity. Interest is paid…

A: Value of Bond = Present Value of Coupon Payments + Present Value of Maturity Value

Q: The $1,000 face value 7% coupon bond pays interest semi-annually. The bond will mature in 5-years.…

A: Modified duration It is generally utilized in the bond evaluation as it expresses the change in a…

Q: A $1000, 5% bond with annual coupons will be redeemed at the end of 9 years. Find the price to yield…

A: A bond is the debt instrument issued by a company to the investors willing to invest in the company.…

Q: Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and…

A: Bond valuation is a way to determine the price of the bond. It calculates the present value of a…

Q: Quiver Archery's bond currently is selling for $1,006; its value one year ago was $996. The bond has…

A: a) Hence, the current yield is 7.03%.   Hence, the capital gain yield is 1.00%.

Q: A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call…

A: In the above question we require to compute the Yield to call on the bond. other details are : Call…

Q: Calculate the yieid to maturity of the corporate bond with a maturity value of $1000 and a coupon…

A: YTM is the rate of return a bond generates over its maturity period assuming that the coupons are…

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 $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 12% bond of Alpha Company with 15 year to maturity is selling in the market for $955, it has a…

A: Yield to Maturity (YTM) is the internal rate of return required for the present value of future cash…

Q: A 30,000, 6% bond with coupons payable quarterly is redeemable at par at the end of 8 years. The…

A: Face value = 30,000 Coupon rate = 6% Quarterly coupon amount = 30,000*0.06/4 = 450 Years to maturity…

Q: A company issued zero coupon bonds of maturity of 10 years. The required rate of return is 8%.…

A: Zero-Coupon Bond or Deep-Discount discount Bond are debt securities that are issued at price lower…

Q: What is the value of $1000 par value 8 3/8% Marriott Corporation bond for the for each of the…

A: Bond is one of debt security which is issued by corporations or government to collect funds. Bonds…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Bond price will be equal to par value when coupon price is equal to yield

Q: OAssume a 10-year, $1,000 par value bond with a 10 percent annual coupon if its required rate…

A: Given Information: Par Value =$1000 Required rate of return = 10% Coupon Rate = 10% Time Period = 10…

Q: The $1.000 face value 7% coupon bond pays interest semi-annually. The bond will mature in 5-years.…

A: Modified duration determines the measurable change in the value of bond's price with respect to the…