A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 16 years. The bonds are currently trading at $746. What is the yield on this bond? Answer in percent, rounded to two decimal places. (e.g., 5.67%=5.67)

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: Sunland Corp. issued a four-year bond one year ago with a coupon rate of 5.0 percent. The bond pays…

A: The price of bonds today is the sum of the present value of interest and the present value of…

Q: Gabriele Enterprises has bonds on the market making annual payments, with eleven years to maturity,…

A: A bond is a kind of debt financial instrument that is being issued by corporations and government in…

Q: Lei Corporation has bonds on the market with 16.5 years to maturity, a YTM of 7.7 percent, a par…

A: Given information: Par value of bond is $1,000, Number of years is 16.5 years Current price of bond…

Q: A company's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 14 years to…

A: Computation:

Q: Suppose the book value of the debt issue is $60 million. In addition, the company has a second debt…

A: Book value of debt is the value at which debt is recorded in books of accounts while market value of…

Q: Ibra Fabrics Inc. has issued 30-year semiannual coupon bonds with a face value of OMR 1,000. If the…

A: Given: Face value =$1000Annual coupon rate =10%Current yield to maturity =12%Year of maturity =30

Q: Aloha, Inc., has 6 percent coupon bonds on the market that have 11 years left to maturity. If the…

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

Q: Westco Company issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make…

A: The face value of the bond (FV) is $1,000. The coupon rate of the bond is 5.4%. The maturity of the…

Q: Wesimann Co. issued 15-year bonds a year ago at a coupon rate of 8.1 percent. The bonds make…

A: The face value of the bond is known as par value of the bond. Issue price of the bond can be…

Q: arshall Company is issuing eight-year bonds with a coupon rate of 7.85 percent and semiannual coupon…

A: Data given : Face value of bond =$1000 (assumed) n= 8 years x 2= 16 periods ( as payment is made…

Q: Wesimann Co. issued 11-year bonds a year ago at a coupon rate of 7.7 percent. The bonds make…

A: Face amount (fv): $1,000 Interest payment (pmt): $1,000*7.7%/2= $38.5 Market interest rate (rate):…

Q: Bank of Paris has €1,000 face value, 5.2% coupon rate (semi-annual coupon payments) with an original…

A: Yield to maturity(YTM) is the total yield which an investor can expect from a bond if he/she holds…

Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price…

A: Solution:- Yield to maturity (YTM) of a bond means the rate of return the bond is yielding. We know,…

Q: Grohl Co. issued 11-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual…

A: Given information in question Coupon rate                       =             11% (semi-annual…

Q: Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of…

A: The amount that the bondholder expects in order to invest in bonds at the time of maturity is…

Q: maturity

A: Formula to calculate YTM is: C+F - P      n F + P    2 Where C is the coupon payment, F is the face…

Q: What will be the change in price for each of the bonds? Does this tell us anything about the…

A: The price of a bond is the present value of coupon amount discounted @ of interest rate, including…

Q: Crane Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar…

A: Computation:

Q: Henley Corporation has bonds on the market with 16 years to maturity, a YTM of 10.5 percent, a par…

A:

Q: Calculate the yield to maturity of both bonds. All else being equal, explain which bond the issuing…

A:

Q: A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 18 years. The…

A: Yield on bond can be calculated by using this equation          Zero coupon bond yield(YTM) ==FVPV1n…

Q: Yan Yan Corporation has a $2.000 par value bond outstanding with a coupon rate of 4.7 percent paid…

A: Given information: Face value of bond : $2,000 Coupon rate : 4.7% Years to maturity : 13 Yield to…

Q: Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: McConnell Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.3 percent, a…

A: Par value (F) = $ 1000 Coupon rate= C Semi annual coupon amount (P) = 1000*C/2 = 500C YTM = 7.3%…

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 6 years to…

A: BondIt is the instrument of the indebtedness of an issuer of the bond to the holders of the bond.

Q: A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par…

A: Time Period (N) = 10 years Par Value = 1100 Price of Bond = 1100 Annual Coupon = Coupon Rate * Par…

Q: Wesimann Co. issued 11-year bonds a year ago at a coupon rate of 8.9 percent. The bonds make…

A: Bond Price = Coupon Amount * PVAF ( YTM, Period ) + Face value * PVIF ( YTM, Period )

Q: Dufner Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon,…

A: Yield to maturity (YTM) is the return expected when the bond is held till its maturity period Yield…

Q: Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000.…

A: A. Par Value = $1,000Current Price = $1,150 Annual Coupon Rate = 12%Semiannual Coupon Rate =…

Q: BVA, Inc. has two bond issues outstanding, each with a par value of $1,000. Information about each…

A: Bonds are the debt security which is offered or issued by the corporates or the government to…

Q: Vulcan, Ic., has 8.5 percent coupon bonds on the market that have 8 years left to maturity. The…

A: Bond A bond is a financial instrument that pays a series of equal amount as coupon payment at equal…

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 6% semiannual coupon, 11 years to…

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

Q: Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000.…

A: Present value 1270 coupon amount (PMT) = 15%*1000/2 75 Face value (FV) 1000 NPER (9*2) 18

Q: Vulcan, Inc., has 7.4 percent coupon bonds on the market that have 6 years left to maturity. The…

A: Yield to maturity(YTM) calculates approximate interest rate on a fixed interest security on its…

Q: Nikita Enterprises has bonds on the market making annual payments, with eight years to maturity, a…

A: Coupon rate means the yield paid to the investor by fixed-income security. In simple coupon rate is…

Q: A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 26 months. The…

A: To calculate zero coupon yield: Zero coupon bond yield=FACE VALUEPRESENT VALUE1n-1n=number of…

Q: DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 7.5%, and a current…

A: Bonds are issued in order to raise funds to finance the operations of the company. The bondholder…

Q: Volbeat Corporation has bonds on the market with 17 years to maturity, a YTM of 10.%, a par value of…

A: Bonds are issued in order to raise funds to finance the operations of the company. The bondholder…

Q: Dufner Co. issued 17-year bonds one year ago at a coupon rate of 73 percent. The bonds make…

A: Bond Price= Coupon ×1-1(1+r)n÷r + Par Value(1+r)n where, C is coupon Payment r is yield to maturity…

Q: A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon,…

A: Bond price: Bond price is the current value of the future payments at a given rate of interest.…

Q: Solvay Corporation's bonds have a 10-year maturity, a 12% semiannual coupon, and a par value of…

A: Solution: Bond price is computed as present value of future interest and maturity value discounted…

Q: Nesmith corporation's outstanding bonds have a $1000 par value, and 8% semiannual coupon, 14 years…

A: Bond price is equal to present value of the future coupon payment and present value of the par value…

Q: Dufner Co. issued 17-year bonds one year ago at a coupon rate of 73 percent. The bonds make…

A: Bond Price= Coupon ×1-1(1+r)n÷r + Par Value(1+r)n where, C is coupon Payment r is yield to maturity…

Q: Nesmith Corporation’s outstanding bonds have a $1,000 par value, an8% semiannual coupon, 14 years to…

A: Bonds are instruments used by organizations to get debt funds from public. Bonds pay regular coupons…

Q: Companies are issuing bonds with a face value of $1, 280. the bonds are selling at their par value.…

A: Yield to maturity considers the coupon payment along with the price of the bond. Yield to maturity…

Q: year maturity date. The coupon rate is 8%, and interest is paid quarterly. The required nominal…

A: Bond price is the current discounted value of a bond's future cash stream.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.