A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable semi-annually, and 20 years remaining to maturity. The market interest rate for bonds of similar risk and maturity is currently 8.5% per annum. Required: i. What is the coupon payment of the bond? ii. What is the present value of the bond? iii. If the coupon payment is payable annual (based on the same information), what is the value of the bond?

Q: What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value…

A: Yield To Maturity is the Rate which is expected to earn from a bond after considering all interest…

Q: Bradford Manufacturing Company has just issued a 13-year, 13% coupon interest rate, $1,000-par bond…

A: The Price of the bond or current selling price of the bond is the sum of the present value of future…

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

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

A: Bonds are debt instruments issued by the borrowing organization to the investors. Bonds can be…

Q: Mertol Corporation has 7-year, 1000t par value bonds that make semiannual coupon payments. The…

A: Here, Par value of Bond is 1,000 Current Price of Bond is 673.99 YTM is 22.45% Maturity of Bond is 7…

Q: Assume a company-issued bond with 4,000 OMR face value in the muscat security market with 0.154…

A: Given: Face value = 4,000 Coupon rate = 15.4% YTM = 8% Years = 12

Q: McConnell Corporation has bonds on the market with 15.5 years to maturity, a YTM of 6.2 percent, a…

A: Coupon rate:The coupon rate is the rate of yield provided by the fixed-income securities and it is…

Q: A company releases a​ five-year bond with a face value of​ $1,000 and coupons paid semiannually. If…

A: When the bond issued at par, the coupon rate is equal to the yield to maturity of the bond. Hence,…

Q: What is the Macaulay duration of a 3% bond with 3 years to maturity, discounted at a rate of 2% per…

A: Macaulay duration shows the time period required by investor to recover his invested amount in the…

Q: You are pricing a 10-year, 7 percent coupon bond with a $1,000 face value. Coupon payments are made…

A: This question provides that other similar maturity & credit quality bonds have the yield to…

Q: A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon…

A: Par value of bond = 1000 Coupon rate = 6% Coupon amount = 1000 * 6%    = 60

Q: Texas Corporation has a level-coupon bond with a 9% coupon rate and is paid annually. The bond has…

A: Current value of bond is the sum of present value of cash flows from the bond. The cash flows from…

Q: ConEdison Utility Company has four-year bonds outstanding that pay a coupon rate of 6.6% and make…

A: Yield to maturity of the company will be reflective of the required rate of return for investor in…

Q: A company plans to purchase a zero-coupon bond with a face value of $4,200,000, a time to maturity…

A: Zero coupon bonds are bond that do not pay coupon or interest before the maturity and only pays the…

Q: The

A: Capital gains yield =p1-p0/p0 Po=original purchase price of security P1=current market price of…

Q: ZBD Inc is issuing a 20-year bond with a par value of $1,000.  The bond will pay its holders a…

A: The following information has been provided in the question: Life of bond = 20 years Par value=$1000…

Q: A 6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon…

A: The amount that is received by the bond holder above the par value of the bond when the bond is…

Q: A companies corporate bond has 30 years left to maturity, a par value of $1,000, coupon rate of 7.5%…

A: Given:

Q: A firm issues a 10-year bond with a face value of $1,000 and annual coupon payments of $100.…

A: In this question we need to compute the yield to maturity of bond which will make its present value…

Q: What is the bond's nominal coupon interest rate?

A: Face value FV = 1000 For semi annual N= 30*2=60 YTM= 10.55/2 = 5.275% Currnet price of bond = 925

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: What is the yield to maturity on these bonds?

A: Yield to maturity or the interest rate of the bond refers to the rate of interest earned till the…

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: A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond…

A: Face Value  $                                     100.00 Coupon rate 6.00% Time Period  10…

Q: Carries Clothes, Inc. has a five -year bond outstanding that pays $60 annually. The face value of…

A: Given that;Face value is $1,000Annual coupon payment is $60Current price or present value of the…

Q: Company B has a bond outstanding that pays a 8% coupon. The interest is paid semi-annually, and the…

A: Current yield can be calculated by dividing the coupon amount with current selling price of bond.…

Q: A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the…

A: Par value = £100 Coupon rate = 9% Coupon rate = 100*0.09= £9 Yield to maturity = 12% Years to…

Q: Hizzy Corp. bonds bearing a coupon rate of 15%, pay coupons semiannually, have three years remaining…

A: Bond price = $988 Face value = $1000 Coupon rate = 15% Semi annual coupon amount = 1000*0.15/2 = $75…

Q: ABC Corp issued a bond with a maturity of 12 years. It has a 9 percent annual coupon, a yield to…

A: Face value (FV) = P1000 Coupon rate = 9% Yield to maturity (r) = 8% Years to maturity (n) = 12 Years…

Q: Crane, Inc., has four-year bonds outstanding that pay a coupon rate of 7.00 percent and make coupon…

A: The calculation of yield to maturity is shown below:

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: A company releases a​ five-year bond with a face value of​ $1,000 and coupons paid semiannually. If…

A: When the bond is trading at par, that is at a face value of $1,000 then the coupon rate on the bond…

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: An 8-year bond for Rusk Corporation has a market price of $700 and a par value of $1,000. If the…

A: In this question we need to calculate the yield to maturity of bond. We can calculate yield to…

Q: 4-year bond, with a face value of $1000, and a coupon rate of 5% (coupon is paid semi-annually), has…

A: Using Excel Rate function

Q: are these premium for discount bonds? What is the price of the bonds?

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

Q: A bond with a face value of $1,000 was issued at par (sold for its face value) 5 years ago when…

A: Duration of bonds is the measure of sensitivity of price of bonds to the change in market interest…

Q: You are given the following information aboutr a 20 year bond with face amount 4000. The bond has an…

A: A coupon bond is a debt obligation in which the coupons are also attached.

Q: Consider a 8-year corporate bond issued by Vandalay Industries. The bond has a face value of $1,000,…

A: Bond price refers to the right price of a bond which is also called as the intrinsic value of the…

Q: A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. If interest rates rise…

A: time period = 10 * 2 = 20 annual coupon rate = 6% semi annual coupon rate = 3.00% interest rate = 7%…

Q: Lydic Corporation has bonds on the market with 15.5 years to maturity, a YTM of 7.6 percent, a par…

A: Calculation of annual coupon rate: The annual coupon rate is 8.30%.Excel spreadsheet:

Q: Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of…

A: Current price of the bond is the present value of future payments at a given interest rate. Future…

Q: A bond has a principal of $3,500, a maturity of 30 years, a quarterly couponof 1.25% (that is, 5%…

A: When yield to maturity is same as coupon rate, the price of the bond is equal to the maturity price…