A bond that has features: coupon of rate of  5 percent principal: $1,000 term to maturity: 10 years a. what will the holder receive when the bond matures? b. if the current rate of interest on comparable debt is 8 percent, what should be the price of this bond? would you expect the firm to call this bond? why? c. if the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for ten years if the fundas earn 8 percent annually and there is $100 million oustanding?

Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum .…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable…

A: i. Coupon amount = Face value * Coupon rate Coupon amount = $1000 * 10.5%/2 Coupon amount = $52.50

Q: A firm issues a bond with face value of $10,000. The coupon rate is 10% annually to be paid at the…

A: Value of the bond is present value of cash flows from the bond

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Q: Bond P is a premium bond with a coupon rate of 8 percent. Bond D is a discount bond with a coupon…

A: A Capital Gains yield is a rise in the price of a security such as stock, bond etc.

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a. Calculate the current yield and the yield to maturity                                    Assume…

A: Excel Spreadsheet: Excel Workings:

Q: You want to find the value of a corporate bond with an annual coupon rate of 3%, making semi-annual…

A: value of bond is the sum of present value of coupon payments and present value of principal payment.…

Q: What is the value of the bond?

A: Bond: It is a debt instrument issued by the company from the investors to raise capital for the…

Q: Assume a $1,000 face value bond has a coupon rate of 8 percent, pays interest semi-annually, and has…

A: GIVEN, par = $1000 coupon rate = 8% t = 8 n =2 ( semi annual coupon bond) r = 10% A= face value x…

Q: A four-year bond with a yield of 10% (continuously compounded) pays an 20% coupon at the end of each…

A: Time to maturity is 4 years Bond yield is 10% continuously compounded coupon rate is 20% Par Value…

Q: Showbiz, Inc., has issued eight-year bonds with a coupon of 6.06 percent and semiannual coupon…

A: Market price of the bond is the present value of the future cash flows from the bond at market’s…

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: A bond has the following features: Coupon rate of interest (paid annually): 6 percent Principal:…

A: A bond is a loan to a corporation, government agency or other organization to be used for all sorts…

Q: Find the value of a bond maturing in 7​years, with a ​$1,000 par value and a coupon interest rate of…

A: given data is -  Face value = 1000 Coupon rate = 6.5% paid semi annually Coupon payment = 65 Yield =…

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: A two-year bond pays a coupon rate of 10 percent and has a face value of $1,000. (In other words,…

A: Answer  YTM = {interes + (maturity value- current price )/n}/(maturity value- current price )/2

Q: A corporate bond with a $1,000 denomination and bearing a 10 percent coupon rate willmature in 10…

A: a.The below expression can be used to calculate the current theoretical value of the bond,

Q: A)calculate the value of a bond that matures in 12 years and has a 1000 par value .  the annual rate…

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Q: A corporate coupon bond of 7.0 percent is callable in five years for a call premium of one year of…

A: A callable bond is one which can be redeemed before the maturity at a call price which is above the…

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: Current yield is the coupon payment which is to be paid for the market price of a bond. It is…

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: Bonds are the debt instruments by selling which company procures long-term funds at the fixed rate…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 9% annual…

A: Bonds are debt instruments that provide guaranteed cash flows over a period of your time. The value…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: I/Y = Rate = 10% N = Nper = number of years = 12 PMT = coupon = 1000*6% = -60 FV = future value or…

Q: Consider a Treasury bond with 8% coupon rate and 4 years to maturity (annual coupons). You enter…

A: Forward price is the price at which the buyer will buy the underlying asseat a future date. This…

Q: You want to find the value of a corporate bond with an annual coupon rate of 6%, making semi-annual…

A: Par value of bond (FV) = $ 1000 Coupon rate = 6% Semi annual coupon amount (C) = 1000*0.06/2 = $ 30…

Q: the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 •…

A: Bond is a type of debt security which carry fixed income i.e. interest. Bond are issued by…

Q: Showbiz, Inc., has issued eight-year bonds with a coupon of 5.78 percent and semiannual coupon…

A: This question has two parts: In part a we need to compute the market price of bond In part b we need…

Q: A 25-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate…

A: Yield to maturity of a bond is the interest rate that makes the present value of the cashflow…

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: What is the yield to maturity on a bond that has a price of $1,700 and a coupon rate of 12% annually…

A: Information provided: Price = $1700 Future Value = $1000 Coupon rate = 12% Coupon payment = 120…

Q: Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual…

A: Bond price implies for the consideration paid by an investor for acquiring bond. In provided case,…

Q: An investor is interested in buying a corporate bond with a face value of $1,000, AA rating, and a…

A: Par value of bond = $ 1000 Coupon rate = 3% Semi annual coupon amount = 1000*0.03/2 = $ 15 Years to…

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

A: Bond price: Bond price is the present value of future payments at a given yield to maturity. Future…

Q: A bond has the following features: Coupon rate of interest: 5 percent Principal: $1,000 Term to…

A: Bond  Debt security in which, bond issuer owes the debt holders and is being obliged for the payment…

Q: A firm sells bonds with a par value of 1000 Rupees, carry a 8% coupon rate, with a maturity period…

A: a) Interest payment you receive each year = Par value * Coupon rate

Q: A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face…

A: Par value of bond = $ 1000 Coupon rate = 5.25% Semi annual coupon amount = 1000*2.625% = $ 26.50…

Q: A 10 year corporate bond has a maturity value of $10,000 and a coupon rate of 7%, with coupons paid…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: A bond with a face value of $1,000 has 16 years until maturity, has a coupon rate of 7.8%, and sells…

A: face value = $1000 n= 16 years coupon rate = 7.8% price =$1071

Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years…

A: YTM: Semiannual rate is 5.07476% Annual rate or YTM is 5.07476%*2 = 10.15%

Q: Consider a 30-year U.S. corporate bond paying 7 percent coupon. The bond has 20 years left to…

A: When the bonds are held by the bondholder up to the call date, the return that is received by the…

Q: A two-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000.…

A: a) Computation of realized compound yield to maturity when the interest rate is 8%:Total…

Q: expected yield to maturity

A: Face value= $1000 rate of coupon=8% (8% of 1000=80) By the formula YTM= C+F-P÷nF+P÷2×100…

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

A: We need to calculate bond price by using excel PV function. The formula is =-PV(RATE,NPER,PMT,FV)

Q: An issue of bonds with par of $1000 matures in 12 years and pays interest at 7% annually. The…

A: Required: The bond's expected rate of return. Should the investor purchase the bond?