A bond matures in 25 years but is callable in 10 years at 120. The call premium decreases by 2 percent of par per year. If the bond is called in 14 years, how much will you receive?

Q: the current interest rate on bonds of a certain type is 10%, compounded semiannually, what should…

A: Market price of bond = Present value of all coupon payments +Present Value of face value We need to…

Q: A bond with 5 years to maturity and a coupon rate of 6% has a par or face value of $20,000. Interest…

A: Cash Flow at the time of maturity = $20000 Interest (Annuity) annually = ($20000 * 6%) =…

Q: Calculate the current price of the following bonds: a) Bond A has a face value of $22,000 and…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining part…

Q: What is the implicit (dollar) interest for the first year of an American Century bond currently…

A: in this we have to calculate interest rate considering present value and future value.

Q: Bond matures in 18 years and pay 14 percent interest annually. If the bond is purchased for $1,225…

A: Face value = $1000 Bond price = $1225 Coupon rate = 14% Annual coupon amount = Face value*Coupon…

Q: he bond matures in 10 years, at which time it will pay 1000. If the coupon rate is 7% and discount…

A: The bond price is calculated as present value of cash flows from bond

Q: bond matures in 8 years has a par value of $1000 and a annual caupon payment of $70, its market…

A:

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

A: Given information: Principal amount is $1,000 Semi-annual interest is $45 Number of years is 15…

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 BobCo bond with a face value of $100 matures in one year. There is a 50% chance that BobCo will go…

A: To find the market interest rate, we will first have to find the expected value to be received.  We…

Q: What is the market price of a $1,000, 8 percent bond if comparable market interest rates drop to 6…

A: Price of the bond is present value of future cashflows

Q: A 25-year, $1,000 face value bond sells for $925 has an 8% annual coupon rate. The bond will mature…

A: Given information : Time period (years) 10 Face value $1,000 Selling price $925 Coupon rate…

Q: Calculate the current price of the following bonds: a) Bond A has a face value of $22,000 and…

A: The value bond is present value of coupon payment and present value of par value.

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: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: BOND L       Yield to maturity  17 coupon amount (PMT) = 11%*1000 110 Face value (FV) 1000…

Q: Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on…

A: Price of bond = [ PVAIF (Yield rate , periods) * Interest ] + [ PVAF (Yield rate , Period) *…

Q: What is the present worth of a $10000 bond that has an interest of 20% per year payable…

A: The bond is fixed-income security issued by the company to raise funds. The present worth of a bond…

Q: An investor has two bonds in his portfolio that have a face value of$1,000 and pay an 11% annual…

A: a) Computation:

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: For bond L, it is given that;Par value of the bond is $1000Yield to maturity is 5%Time period is 17…

Q: What is the price of the bond at 3 different points in time - today, in 1 year, and in 2 years.  Is…

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

Q: If you purchase a 5-year, zero-coupon bond for $691.72, how much could it be sold for 3 years later…

A: Zero coupon bonds are bonds which do not pay coupons and sold at discount to face value

Q: A 9-year bond has a yield of 10% and a duration of 7.194 years. If the market yield changes by 50…

A: Bond yield =10% Duration = 7.194 Market yield Change by = 50 basis point

Q: A bond pays $1,500 at the end of each year for five years, plus an additional $2,000 when the bond…

A: Annual cash inflow = $ 1500 Maturity value = $ 2000 Years to maturity = 5 Years Annual interest rate…

Q: A bond that matures in 8 years has a par value of 1000 and a annual coupon payment of 70; its market…

A: Using excel PV function to calculate price of the bond.

Q: A 30-year, $1,000 par value bond has an annual payment coupon of 7.5%.  The bond currently sells for…

A: The presentation of the interest expense and coupon payments for a bond is different, the interest…

Q: what is the bond rate of return over the year?

A: Bond Rate of Return: It refers to the gain or loss of a security/investment for a certain period.…

Q: What is the market price of a $1,000, 8 percent bond if comparable market interest rates rise to 10…

A: Given, C = coupon payment = $80.00 (Par Value * Coupon Rate)n = number of years = 14r = market rate…

Q: A 20-year, $1,000 par value bond has an 8.5% annual payment coupon.  The bond currently sells for…

A: Using excel rate and PV function to calculate price 10 years from now

Q: A $1,000 bond has a 6.5 percent coupon and matures after ten years. If current interest rates are 8…

A: 1.    Bond Price = 1000*6.5% * PVAF(8%, 10 years) + 1000* PVF (8%, 10 years)…

Q: You are asked to put a value on a bond which promises eight annual coupon payments of £5 and will…

A: The present value(PV) of the bond here will be  obtained by discounting all its future cashflows.

Q: What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to…

A: First, need to find out Yeild to Maturity  Solved using Financial Calculator  PV = -959 FV = 1000…

Q: A bond has 5 years to mature. Its face value is 1500 and pays a coupon of 12% coupon is paid on a…

A: Here, Time period of Bond is 5 Years Other Details are as follows:

Q: Assume that a bond makes 30 equal annual payments of \$1,000$1,000 starting one year from today.…

A: Using excel PV function

Q: A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return…

A: A bond is a financial security issued by many business organizations and governments to raise debt…

Q: What is the market price of a $1,000, 9 percent bond if comparable market interest rates drop to 7…

A: price of bond is present value of future casflows. formula for price of bond: price of…

Q: What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually…

A: Bond which is selling above par value is called premium bond

Q: A two-year amortizing bond has a coupon rate of 4% and pays its coupons semi- annually. Coupon…

A: A bond is a debt instrument used to raise capital. It is marketable security, i.e., it can be traded…

Q: A bond that pays no interest is called a zero-coupon bond. A $10,000 zero-coupon bond that matures…

A: Bond's intrinsic value = Present value of its cash flows  Hence, IV of a ZCB = F/(1+r)n Where F =…

Q: Consider a bond paying an annual coupon of $70 with a face value of $1,000. Calculate the yield to…

A: using financial calculator, N(time to maturity) =18 PV (Price of bond) = -1150 FMT (annual Coupon) =…

Q: you expect the inflation rate to be 15 percent next year and a one-year bond has a yied to maturity…

A: Real interest rate is nominal interest rate minus inflation. Nominal interest rate is interest rate…

Q: A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of…

A: Year of Bond =20 Annual payment =$70 Face Value =$1000

Q: A nine-year bond has a yield of 10% and a duration of 7.194 years. If the bond's yield to maturity…

A: Formula: Percentage change in price=-Duration×Percentage change in yield

Q: Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 9…

A: Answer: Calculation of the present value of the payment of $8,981, if the interest rate is 4%:…

Q: A $1000 bond has 15 more years to maturity, an interest rate of 6%, and it pays interest…

A: Using excel PV function to calculate Price of the bond

Q: f a bond can be purchased for $60 and has a maturity value at the end of 10 years of $500, what is…

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

Q: You spend $725.00 to purchase a $1,000 bond that will have no coupon payments and matures in 12…

A: For the calculation of interest rate our formula will be as follows:   Interest rate = (Maturity…