A bond has a face value of $20, 000 and matures in 10 ye ars. The nominal interest rate is 8.5%. What is the price of the bond to yield a true interest rate of 8%.

Q: A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25…

A: In this question we require to calculate the coupon rate of bond using following details: Face value…

Q: A $1,000 bond with annual coupon rate of 5% is traded at $950 in year 9, what is its rate of return…

A: The net gain earned or loss incurred by an investment that is represented in percentage is called…

Q: uppose the yield on a two-year-old Treasury bond is 5 percent and the yield on a one-year…

A: A risk-free bond that is issued by the government, and also has a more than 20 years maturity period…

Q: The face value of a bond is P 100,000 and currently and currently selling at P 134,996.00. The bond…

A: Face value (F) = P 100000 Bond price = P 134996 n = 11 years = 22 semiannual periods r = 4.03% per…

Q: four-year bond has an 8% coupon rate and a face value of $1000.  If the current price of the bond is…

A: Because you have posted multiple questions , we will answer the first question only. For the…

Q: A bond pays coupons annually, has a yield-to-maturity of 5%, and a duration of 6 years. What is this…

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

Q: A five-year bond is issued with a face value of GHC3000. The bond pays coupon semiannually at 10%.…

A: Bond estimating is an experimental matter in the field of monetary instruments. The cost of a bond…

Q: The face value of a bond is $7,000, and the annual coupon payment is $385. The coupon rate is .

A: In the given problem we require to calculate the coupon rate of bond from the following details:…

Q: Hassan Company bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a…

A: loYield to Maturity refers to the expected percentage of return calculated by the investor after…

Q: A bond has a 5% coupon rate. The coupon is paid semiannually, and the last coupon was paid 35 days…

A: The computations as follows: Coupon is paid semiannually then; payment is every 182 days.

Q: A bond matures in 12 yesrs has a $1000 par value. The annual interest rate is 13 percent. The…

A: Time period of bond = 12 years Par value = $1000 Coupon Rate = 13% Yield to maturity = 14%

Q: A one-year premium bond with a face value of $10,000 has been purchased for $11,150. What is the…

A: The following information has been provided in the question: Face value of bond= $10,000 Price of…

Q: A 30-year bond with a face value of $1,000 pays $35 every 6 months and has a yield to maturity of 4%…

A: Return rate which an investor can earn from holding the security for a particular time period is…

Q: A three-month treasury bill sold for a price of $99.311998 per $100 face value. What is the yield to…

A: Solution : Price (P) = $99.311998 Face value (FV) = $100 time (n) = 3 month or 3/12 = 0.25 year…

Q: a bond currently has a price of $1050.  The yield on the bond is 6%.  If the yield increases by 25…

A: % Change in Price = $1050-$1030 /$1050 % Change in Price = $20/$1050 % Change in Price = 1.9047%

Q: llais Company’s bond has an $85 annual interest payment that will mature in 10 years at a value of…

A: The yield of the bond is the required rate of return on the investment made by the bondholders. The…

Q: ACT has an outstanding bond with a face value (principal) of Php. 1,000 which would mature in 10…

A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…

Q: You intend to purchase a 2-year bond. The bond has a $1,500 face value and coupon payments are…

A: Given: Year = 2 Interest rate = 4% Market rate = 18% Face value = $1,500

Q: Suppose a five-year, $1,000 bond with annual coupons has a price of $903.34 and a yiold to maturity…

A: Following details are given in the question : Face value of bond = $1000 Current price (present…

Q: A five-year bond is issued with a face value of GHC3000. The bond pays coupon semiannually at 10%.…

A: Duration of bond shows the change in bond price due to change in interest rate. Macaulay duration =…

Q: A 2-year Treasury bond pays coupon interest semiannually. Suppose the annual coupon rate is 8%, the…

A: A risk-free bond that is issued by the government, and also has a more than 20 years maturity period…

Q: A RM1,000 bond matures in 10 years has a coupon rate of 8 percent. Calculate the price of this bond…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds. The bonds…

Q: The face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling…

A: Given: Coupon rate = 8.5% Face value = $1,000 Years =5 Current price = $943.15 Yield to maturity =…

Q: he par value of 8% bond is P5,000 with maturity is 5 years. What would be the price if interest rate…

A: Price of a bond is simply the present value of its cash flows that will occur in future. Cash flows…

Q: A bond has a $1,000 face value, a market price of $1,045, and pays semiannual payments of $42.25…

A: In the given problem we are required to calculate the coupon rate on the bond using following…

Q: A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year. How…

A: The capital gain on the financial securities refers to the gain and loss arising due to the sale and…

Q: nd has a 11% Coupom Rate, maturity is 12 years and face value is 5,000 $. Yield to Maturity (YTM) of…

A: Value of bond can be calculated from the present value of coupon and present value. Duration of bond…

Q: The yield on a bond is 6% annual. The face value of the bond is $1,000. The bond pays semi-annual…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: What is the yield to maturity?

A: As no coupon payment is mentioned, this bond is assumed to be a zero coupon bond. A zero coupon bond…

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: he market price is ​$725 for a 9​-year bond ​($1,000 par​ value) that pays 12 percent annual​…

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

Q: A bond has 3 years remaining until maturity. It has a par value of Rs. 20,000. The coupon rate on…

A: Given information: Par value of the bond is 20,000 Current price of bond is 11,000, 10,000 and…

Q: A bond worth P 50 000 has a rate of 12% annually for 15yrs. Considering an interest rate of 12%…

A: Par value (FV) = P 6000 Coupon rate = 12% Coupon amount (C) = 6000*0.12 = P 720 Number of coupon…

Q: Graystone bonds have a maturity value of $1,000. The bonds carry a coupon rate of 12%. Interest is…

A: Answer

Q: A 2-year discount bond with a face value of 1100 was purchased for 1000. What is the yield to…

A: Here, Face Value of Discount Bond  (Future Value) is 1100 Purchase Price of Discount Bond (Present…

Q: The Mobile Motors Inc. bond has 12 years remaining to maturity. Interest is paid annually, it has a…

A: Current price of the bond is the sum of present value of coupon and the present value of face value.

Q: A bond with a face value of RM 1,000 has coupon rate of 7%, yield to maturity of 10%, and twenty…

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

Q: A bond that matures in 7 years sells for $1020. The bond has a face value of $1000 and a yield to…

A: Current Price of bond is $1020. Face value of Bond is $1000 Yield to maturity is 10.5883% Maturity…

Q: The face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling…

A: Bond duration is referred as the method of measurement for how much the bond prices, which used to…

Q: If the annual interest rate printed on the face of a bond is 10 percent, the face value of the bond…

A: Here, Annual Interest rate = 10% Face value of the bond =$1,000 Present value of the bond = $1,250…

Q: A four-year discount bond has a face value of $1,000 and a price of $925.  What is the yield to…

A: We need to use RATE function in excel in to calculate yield to maturity. Yield to maturity(YTM)…