A $1,000 principal value bond costs $35 in quarterly interest and matures in ten years. How much should you be able to pay for this bond if your nominal annual necessary rate of return is 12% with quarterly compounding? a. $ 941.36 b. $1,051.25 c. $1,115.57 d. $1,391.00 e. $ 825.49

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

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A: YTM formula: YTM=2×Coupon+par-pricenpar+price2

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A: Face Value = $10,000 Time Period = 15 Years Yield = 12% compounded quarterly

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A: Using Present value function in excel

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Q: Determine the present worth if the bond pays 12% compounded annually?

A: The present worth can be found using the PV Function in excel. PV = (RATE, NPER, -PMT, -FV, 0) RATE…

Q: Assume a $1000 bond issue at the rate of 10% for 15 years. a)What is the interest payment for this…

A: Bond carry annual payment which are paid during the life of bonds.

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A: Selling price of the bond is the market price for which a bond will be sold off. The selling price…

Q: sond with a face value of $5,000 pays quarterly interest of 1.5 percent each period. Twenty-two…

A: Solution Given Face value 5000 Quarterly interest rate 1.5% Quarterly interest…

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A: Answer Principal = $10 000  Maturity= 3 years Annual interest rate = 4% Half yearly amount  ($10,000…

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A: The question is based on the concept of valuation of bond with coupon payment. Formula as,  V=…

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A: The correct option is option “3”.

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A: The following formula will be used:

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A: The conceptual formula used: