A bond issue whose price was $ 295,000 and whose par value is $ 300,000 was sold: Multiple Choice for an amount less than its par value. With discount. with cousin. to even value.
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A bond issue whose price was $ 295,000 and whose par value is $ 300,000 was sold:
Multiple Choice
for an amount less than its par value.
With discount.
with cousin.
to even value.
Step by step
Solved in 3 steps
- The bond certificate with a par value P1,000,000 and a bond rate of 10 % was sold for P1,064, 176.58 . Calculate the yield that the investor obtained from his investment .With an assumption of annual compounding, Frey, Inc. bond is a 5.00%, 15-year bond priced to yield 8.00%. The Janis Marion Incorporated bond is a 7.50%, 20-year bond priced to yield 6.00%. Two bonds have par values of PhP1,000. Which of these has a lesser price?Consider the following three bond quotes: a Treasury bond quoted at 103:17, a corporate bond quoted at 96.70, and a municipal bond quoted at 101.10. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? (Do not round intermediate calculations and round your final answers to 2 decimal places.)
- ‘An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 11% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 7%, What is thepercentage change in price for each bond after the decline in interest rates? Fill in the following table. Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers totwo decimal places. Price @ 11% Price @ 7% Percentage Change10-year, 10% annual coupon $ $ %10-year zeroS-year zero 30-year zero$100 perpetuityA $1000, 25-year bond carrying a coupon rate of 8.00% was issued at a $32 premium. What was the market rate of return at the time thebond was issued?Multiple Choice8.000% compounded semiannually7.815% compounded semiannually6.400% compounded semiannually 8.306% compounded semiannually7.709% compounded semiannuallyIf a P1,000 bond sells for P1,125, which of the following statements are correct? I. The market rate of interest is greater than the coupon rate on the bond. II. The coupon rate on the bond is greater than the market rate of interest. III. The coupon rate and the market rate are equal. IV. The bond sells at a premium. V. The bond sells at a discount. a. I and IV b. I and V c. II and IV d. II and V
- d is listed in & newspaper at a bid of 105.4844. This quote should be Interpreted to mean: e bond will pay semiannual interest payments of $105.4844 per $1,000 of face value. can 'euyuwt bond at a price equal to 105.4844 percent of face value. sellthat bond at a price equal to 1054844 percent of face value. il pay annual interest payments of $105 4844 per $1000 of face value. s willng to sell that bond for a price equal to 105.4844 percent of par.Consider the following three bond quotes: a Treasury bond quoted at 105:23, a corporate bond quoted at 97.00, and a municipal bond quoted at 101.40. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? (Do not round intermediate calculations and round your final answers to 2 decimal places.) what would be the treasury bond.A convertible bond has a par value of $1,000 and a current market price of $850. The current price of the issuing firm's stock is $27, and the conversion ratio is 30 shares. The bond's market conversion value is Multiple Choice $729. $810. $810. $870. None of the options are correct.
- A convertible bond has a par value of $1,000, but its current market price is at $975. The current price of the issuing company's stock is $26, and the conversion ratio is 34 shares. What is the bond's market conversion value?an issuer issues three bonds. i) a fixed rate bond paying a fixed coupon, ii) a floater paying a floating coupon rate equal to LIBOR plus 200 basis pooints, and iii) an inverse floater paying a floating coupon equal to 800 basis points minus LIBOR. Which bond is least risky? a. the floater b. equally risky c. the inverse floater d. the fixed rate bondTwo $1,000 bonds, redeemable on the same date at par to yield 4.5% have annual coupon rate of r and 2r. If the total purchase price of the two bonds is $2,153.52 and the difference of the bond prices is $307.04, find r.
