A corporate bond has a face value of $10,000, a bond interest rate of 8% per year payable semiannually, and a maturity date of 20 years from now.If a person purchases the bond for $9000 when the interest rate in the market place is 8% per year compounded semiannually, the size and frequency of the interest payments the person will receive are:a. $270 every six monthsb. $300 every six monthsc. $360 every six monthsd. $400 every six months

Q: Arjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000, The bond pays $30 to…

A: Given: Face Value “FV” = $1000 Coupon = $30 Maturity payment = $1030

Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…

A: Face Value  $       10,000.00 Coupon rate 8% Time Period 30 Yield 12% Time Passed 10

Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…

A: A bond is borrowing security that is issued by the company in order to raise funds from the market…

Q: The saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: our yield to maturity on the Abner bonds is _____​%.​(Round to two decimal​ places.)

A: Information Provided: Years to maturity = 16 Coupon Interest Rate = 12% Bond price = $800 Par Value…

Q: An investor purchases a bond 6 months after the issue. The bond will be redeemed at 105% eight years…

A: Price of a bond = present value of its future cashflows, let the purchase price be = P  Hence, P =…

Q: Clancey Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The…

A:

Q: A well-known industrial firm has issued $990 bonds that carry 4% nominal annual interest paid…

A: Bonds refer to the financial instruments which are used by  the financial institutions  for raising…

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

Q: Seaside issues a bond that has a stated interest rate of 12%, face amount of $40,000, and is due in…

A:

Q: A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding.…

A: A bond is investment security issued by large business entities and governments to raise borrowing…

Q: A government bond with a face value of $1,000 was issued eight years ago and there are seven years…

A: Cash Flow at the time of maturity = $1000 Interest (Annuity) semiannually = $45 Table value are…

Q: A bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years.…

A: Given: Coupon amount = P6000 Face value = P450,000 Years = 30 Interest rate = 2%

Q: Allington Corp. issues $560,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On July 1, Somers Inc. issued $300,000 of 10%, 10-year bonds when the market rate was 12%. The bonds…

A: Issue price of bonds refers to the price at which the bonds are actually issued.

Q: A bond pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the…

A: Annual dividends (D) = $110 Duration (n) = 20 years Interest rate (r) = 12% Bond price = 1546 Let…

Q: The Saleemi​ Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…

A: Annual coupon interest payments = 6% of 1000 = 60 14 such coupons will be paid.

Q: Quinn purchases a bond for $29,000 when the market interest rate is 13% per year, compounded…

A: Bond is a debt security that is issued by organizations to raise debt funds from investors in…

Q: A Montana state bond can be converted to $1,000 within 5 years of purchase. If the Montana bonds are…

A: Zero Coupon Bonds don't pay any coupons. They are also called Deep Discount Bonds because they are…

Q: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date.  The bonds…

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: McAllen Corporation is issuing a $20,000,000 20-year bond with a stated interest rate of 10%. This…

A: Bond   A bond is basically an interest-bearing loan instrument that is issued by the companies in…

Q: Navistar Electric issued 1000 debenture bonds 5 years ago with a face value of $5,000 each and a…

A: A Bond is an instrument that represents the loan that is made by the investor to the company and…

Q: Abner​ Corporation's bonds mature in 23 years and pay 11 percent interest annually. If you purchase…

A: Face Value = $1000 (Assumed) Maturity = 23 years Coupon rate = 11% Coupon amount = $1000*11% = $110…

Q: A company issues a $100,000 bond due in 4 years paying 7 percent interest annually at year- end.…

A: We require to calculate the present value of bond in this question. We can calculate the present…

Q: ACT has an outstanding bond with a face value (principal) of ₱1,000.00 which would mature in 10…

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

Q: A 20-year bond with a face value of P 5,000 is offered for sale at P 3,800. The nominal rate of…

A: Bonds are one of the most traded financial asset in the financial market. It is demanded by the…

Q: Krystian Inc. issued 8-year bonds with a face value of $100,000 and a stated rate of 5% when the…

A: Answer A) Calculation of Total Amount to be received over the Bond Period Total Amount to be…

Q: Ten bonds are purchased for $ 9,340.69 and are kept for 5 years. The bond coupon rate is 6% per…

A: Given 10 bonds are purchased for 9340.69 and the face value of bonds should to be calculated. Let…

Q: On January 1, 2021, a firm issues bonds with a face amount of $1,500,000. The stated rate is 10%,…

A: Issuing bonds is one way for companies to raise money. A bond functions as a loan between an…

Q: A company has issued 11-year bonds, with a face value of Php1,000,000, in P1,000 units. Interest at…

A: Given, Face value of the Bond (P) = Php 1,000,000 Nominal interest (C) = 100,000 Interest = 15%…

Q: On September 30, Stinky Bank issued 10-year bonds at an annual simple interest rate of 4.25%, with…

A: a) Interest every six months would be Interest = Principal * Rate * Time(years) =$10000*4.25%*6/12…

Q: ABC Trucking has issued an 8 percent, 10 year bond that pays interest semiannually. If the market…

A: Present value of all the expected coupon payments and the maturity value is the expected price of…

Q: A corporate bonds has a face value of $1000 with maturity date 20 years from today. The bond pays…

A: The current interest rate is compared to the rate of interest indicated on the bond to compute the…

Q: ABC Corporation’s recently issued bonds paying interest semiannually and maturing in 10 years. The…

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: A one-year U.S. Treasury bond and a one-year corporation bond both promise to pay $11,934 next year.…

A: A bond is a debt instrument that is used for raising capital by organizations for their operations.…

Q: Happy Hollow, LLC issues Ș50,000 bonds at 20% interest with quarterly interest payments. Bonds have…

A: Total Interest Received=Face Value×Interest Rate×Time

Q: Bushman, Inc., issues $200,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Future value is the value of an invested cash on a particular date which is equivalent to the value…

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

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

Q: - A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding-…

A: The Price of the bond refers to the present value of the coupon cash flows and the maturity value.…

Q: An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and…

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: The Saleemi​ Corporation's ​$1,000 bonds pay 5 percent interest annually and have 13 years until…

A: Bonds are long-term financing debt. It is a company that raises funds for its business. In return, a…

Q: Company 'A' issues a bond at $1,000 and offers a payment of $50/year every year for 3 years. If the…

A: A bond is a finanical tradeable security issued by large business entities and government bodies.…

Q: The face value of a bond is $3000.00. The firm offering the bond pays 1% of the sales price to the…

A: Rate of return is one of the discounted cash flow techniques used by business entities in order to…

Q: Ten bonds are purchased for $9,598.13 and are kept for 5 years. The bond coupon rate is 7% per year,…

A: Purchase price of the bond is $9,598.13. Coupon rate 7% Yield is 9% term is 5 years

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: Formula to calculate yield to maturity:YTM=C+FV-PVnFV+PV2×100r= rate of returnC= Coupon paymentn=…

Q: The Saleemi​ Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…

A: Par value (FV) = $ 1000 Coupon rate = 6% Coupon amount (C) = 1000*0.06 = $ 60 Years to maturity = 14…