A $5,000 bond is offered for sale. It has a stated interest rate of 7% paid ann end of 8 years, the $5,000 debt will be repaid along with the last interest pay u want 8% interest rate of return in this investment, how much would you be v for the bond

Q: Bonds sell for $1,150, they have a 6.75% annual coupond and 15 year maturity and callable in 6 years…

A: Nper = 15 Years (Yield to maturity) Coupon rate = 6.75% PMT = 1000*6.75%= 67.50 (coupon amount) Pv=…

Q: nds pay $70 in annual interest, with a $1,000 par value. The bonds mature in 17 years.  Your…

A: The value of the bond can be calculated as follows : Results obtained :

Q: gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of…

A: Face value =10000 Market price =8900 Coupon =5% MATURITY =9 years  Could =500 Annual

Q: A 1000 bond bearing interest at 5.4% payable semi-annually is due in three years. If money is worth…

A: Purchase price of bond can be calculated by determining the present value of bond plus present…

Q: A $15,000 bond pays interest at 3.7% compounded semi-annually and is redeemable in 12 years. The…

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

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 S25,000,7% bond redeemable at par with interest payable annually is bought 5.5 years before…

A: Bond is the debt financial instrument form investor to borrower.

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

A: A bond is a debt instrument that is issued by governments and companies which forwards them a loan…

Q: A band has an interest rate of 15% for the next 5 years. The current cost and par value of the bond…

A: Net present value (NPV) of an alternative refers to the variance between the initial investment or…

Q: Five $1,000 bonds having a bond rate of 8% per year payable quarterly are purchased for $4,940 and…

A: Given information: Face value of bond is $1,000 Coupon rate is 8% Yield is 6% Number of years is 6

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Given information: Par value of bond is $10,000 Purchase price is $9,500 Bond rate is 6.6% per year…

Q: A $3000 bond that pays 9%semi-annually is redeemable at par in 15 years. Calculate the purchase…

A: Solution:- We know, the purchase price of bond is the present value of amounts receivable from the…

Q: A bond promises to you 7000 in 10 years.  If you are able to earn 6 percent on securities of equal…

A: Future Value = 7000 N = 10 Rate = 6%

Q: A bond has an interest rate of 15% for the next 5 years The current cost and par value of the bond…

A: Net present value is the sum of the present values of net of all future cash outflows and inflows…

Q: SOP Ltd bonds have a par value of $1,000. The bonds pay semi-annual interest of $40 and mature in 5…

A: Using Present value function in excel

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: Jon Snow purchased a bond, costing 1000, three years with a current price of 1,150. This bond paid…

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

Q: Suppose you deposit $2000 in an individual retirement account ( IRN) that pays interest at 6%…

A: Deposit amount= $2000 Interest for first two years= 6% compounded monthly Interest for next three…

Q: A $10,000 commercial bond that has a 6% bond rate and matures in 5 years can be purchased for…

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

Q: Mr. Gonzalez wishes to sell a bond that has aface value of $1,000. The bond bears an interest rateof…

A:

Q: Pearson Co issue its $154,000 at a price of 97, the stated rate is 6%, the bond term is 4 years, and…

A: Face Value of Bonds = $154000 Issue Value of Bonds = $154000 * 97% Issue Value of Bonds = $149380…

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: Labadi Inc issues a bond that has a stated interest rate of 10%, face amount of $100,000, and is due…

A: Number of periods = 5 years*2 Number of periods = 10   Coupon rate = 10%/2 Coupon rate = 5%   Market…

Q: Determine the current value of an 7.5% GOJ bonds with a face value of $500,000.00 that pays interest…

A: Bond Current Price  = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount  Mv = Maturity…

Q: bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to…

A: Given information :

Q: d purchase price of a 7%, m=2, Php 15,000 bond

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: Compute the specified quantity.A 4-year bond costs $20,000 and will pay a total of $2,800 in…

A: The total amount of interest is $2,800.The cost of bond is $20,000.Number of years is 4.The annual…

Q: $15,000 is deposited for 4 years in an account earning 8% interest. Calculate the future value of…

A: 1) Given information: Amount deposited $15,000 Number of years is 4 years Interest rate is 8%…

Q: 8200

A: The above problem can be solved by using the excel function Given: Sale price = $8,200, Face value =…

Q: A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6…

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…

Q: You own a $50,000 corporate bond with a bond interest rate of 6% payable monthly that is due 10…

A: The selling price will be limited to the present value of the future cash flows from the bond.

Q: A $10,000 mortgage bond with a bond interest rate of 8% per year, payable quarterly, was purchased…

A: Payment is made quarterly. So number of periods = 7*4 = 28 Coupon rate per year = 8% Coupon rate per…

Q: A bond pays $50,000 per year and has a face value of $500,000 at the end of 8 years when it has to…

A: Annual payment = $ 500 Face value = $ 500,000 Period = 8 Years Current price = $ 390,000

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 bank offers 8% interest compounded quarterly. a) Determine the required selling price for a P10,…

A: Interest Rate = 8% Compounded quarterly Interest rate = 2% per quarter Face Value = 10,000 Time…

Q: SOP limited bonds have a par value of $1000. The bonds pay semi-annual interest of $40 and mature in…

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

Q: Ten bonds are purchased for $9,083.25 and are kept for 5 years. The bond coupon rate is 5% per year,…

A: Ten bonds purchase price (P0) = $9083.25 Let the face value = F Total coupon for ten bonds (C) = 10…

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

A: A bond is a fixed income instrument that represents a loan made by an investor to a borrower…

Q: Ten bonds are purchased for $9,855.57. They are kept for 5 years and coupon payments are received at…

A: The conceptual formula used:

Q: A 6 year bond costs $3,000 and will pay a total of $200 interest over its lifetime. What is its…

A: Simple interest refers to interest that is just applied to the principal sum of money. The interest…

Q: Biti Bank purchase a $5,000 bond that pays 8% pa compounded half-yearly and is redeemable in exactly…

A: The purchase price can be computed by discounting all the receipts (coupon and redemption) at the…

Q: You wish to purchase a $1,000 bond from a friend who needs the money. There are 7 years remaining…

A: Bond valuation is based on the present value of all future cash flows at a required rate of return.…

Q: Marty Corp is issuing a perpetual bond today that will pay $100 per year starting in 3 years. If…

A: Given: Particulars Amount Amount paid $100 Years 3 Cost of capital 5%