A P10 000.00 bond that pays P300.00 quarterly matures in five years. Determine the discount or premium to be offered an investor who desires a yield of 14% to maturity.

Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4…

A: Present value (PV) = P1500 Discount rate (r) = 4% Period (n) = 1 Year

Q: A $1,000 par value bond with a fixed 10% rate of interest pays coupons semiannually. What amount…

A: Given data; par value = $1000 interest rate = 10%

Q: The face value of a bond is P 100,000 and currently and currently selling at P 134,996.00. The bond…

A: Face value (F) = P 100000 Bond price = P 134996 n = 11 years = 22 semiannual periods r = 4.03% per…

Q: A five-year bond is issued with a face value of GHC3000. The bond pays coupon semiannually at 10%.…

A: Bond estimating is an experimental matter in the field of monetary instruments. The cost of a bond…

Q: A bond currently has a price of $890. The yield on the bond is 6%. If the yield increases 25 basis…

A: It is given that if yield increase by 0.25% the prices of bonds go down to $870 Computation of % of…

Q: A bond currently trades at P975 on the secondary market. The bond has 10 years until maturity and…

A: The yield to maturity of the bond can be calculated with the help of RATE function of Excel

Q: A bond matures in 12 yesrs has a $1000 par value. The annual interest rate is 13 percent. The…

A: Time period of bond = 12 years Par value = $1000 Coupon Rate = 13% Yield to maturity = 14%

Q: A Limited's bonds bearing a coupon of 12%, pay coupons semi-annually, have three years remaining to…

A: Price of bond = $ 940 Par value = $ 1000 Coupon rate = 12% Semi annual coupon amount = 1000*0.12/2 =…

Q: 1. A bond maturing in 10 years pays annual coupon payment $80 each year and $1,000 upon maturity.…

A: Solution:- Present value of bond means the current price of bond at which it is trading in the…

Q: The yield to maturity of a one- year, $1,000 bond that sells for $710 that requires an interest…

A: YIELD TO MATURITY (YTM) formula: ytm =coupon+par-priceyears to maturitypar +price2

Q: llais Company’s bond has an $85 annual interest payment that will mature in 10 years at a value of…

A: The yield of the bond is the required rate of return on the investment made by the bondholders. The…

Q: A company releases a​ five-year bond with a face value of​ $1000 and coupons paid semiannually. If…

A: Given: Face value =$1000YTM =8%Bonds issued =At premium

Q: A bond with 18 years to maturity has an annual interest payment of $30. If the bond sells for its…

A: Consider the face value be $1000 So, price of bond = $1000

Q: A 15-year bond with 7.5% coupons paid semiannually will be redeemed at P1400. The bond is bought to…

A: Semiannual coupon rate = 0.0375 (i.e. 0.075 / 2) Semiannual yield (y) = 0.03 (i.e. 0.06 / 2)…

Q: The Lo Sun Corporation offers a 5.3 percent bond with a current market price of $858.50. The yield…

A: Given:

Q: The current interest rate on a 10-year coupon bond (with face value = $1,000 and annual coupon rate…

A: In this question we need to compute the amount buyer of bond will receive from the bond issuer every…

Q: Consider the four bonds having annual payments as shown in the following table Year Bond A Bond B.…

A: A bond is a debt instrument by which capital is raised by an institution. It is different from a…

Q: bond wit interest at 6% payable quarterly is bought to yield 4 ½% converted quarterly. On a certain…

A: The reduction in the amount of the overpayment of the Bond is called the premium amortization of the…

Q: The Salem Company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par…

A: Bond price = $955 Coupon rate = 12% Par value = $1000 Coupon amount = 1000*0.12 = $120 Years to…

Q: A 30-year Canada bond is issued with par value of $1,000, paying interest of $60 per year. If market…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: A bond with a par value of P1000.00 will mature in 7 years with a bond rate of 8% payable annually.…

A: Yield to maturity (YTM) is the rate which an investor earns when the bond is held till its maturity.

Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4…

A: Solution: Present value of bond = P1,500 Discount rate = 4% Period = 1 year

Q: A 6-year bond pays interest of $80 annually and sells for $975. What is its coupon rate, current…

A: Coupon rate: Coupon rate is the rate at which a bond is paying interest at a regular interval.…

Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: if the market price of a $1,000-face-value discount bond changes from $950 to $975, the yield to…

A: Yield to maturity if the price is $950 = (F - P) / P= ($1000 - $950) / $950= $50 / $950= 5.26% Yield…

Q: he market price is ​$725 for a 9​-year bond ​($1,000 par​ value) that pays 12 percent annual​…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: Consider a 16-year, $1,000 par value, 4% annual-pay bond that is currently trading at a flat price…

A: Here, Current flat price = $870.07 Face value = $1,000 Time in years = 16 years Interest rate = 4%…

Q: ond has face value £100, coupon rate 10% paid semi-annually and maturity 15 years. The bond can be…

A: Price of bond is present value of the coupon payment and present value of the par value of bond.

Q: The 7-year $1000 par bonds of Vail Inc. pay 11 percent interest. The market's required…

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

Q: A bond has a maturity value draw of 1.125 % from present worth and is paying discrete compound…

A: As per question= 1.03^4= 1.125 times Compound Interest Rate=3% Time Before maturity=4 years…

Q: A three year bond has 8.1% compound rate and face value of P1000.  If the yield to maturity on the…

A: Bonds are the securities issued by an entity for raising funds. The payment of these is an…

Q: What is the YTM of a bond with 12 years to maturity, coupon rate of 10% paid annually, par value of…

A: Yield to maturity (YTM) is the discount rate or the rate of return that an investor earns by holding…

Q: The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to…

A: Hi there, Thanks for posting the questions. As per our Q&A guidelines, the solution for first…

Q: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the…

A: Modified duration = Duration / (1 + Ytm / n)

Q: What is the duration of a 12 year bond paying semiannual interest at a rate of 9.5% with a yield to…

A: Par value of bond = $  1000 Coupon rate = 9.5% Semi annual coupon  amount = 1000*0.095*0.50 = $…

Q: The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until…

A: Given, Face Value = $1000 Coupon rate = 7% Coupon payment = $1000*7% = $70 Current Price = $1095…

Q: A 30-year, $1,000 par value bond has an annual payment coupon of 7.5%. The bond currently sells for…

A: Given: Years = 30 Par value = $1,000 Coupon = 7.5% Current price = $910

Q: Company A issues a 20-year 4% p.a. semi-annual coupon bond, face value of $2,000. 5 years after…

A: Calculate the coupon amount by multiplying the face value of the bond which is $2,000 with the…

Q: A 20-year, 10% monthly-pay bond has a par value of $1,000. If the price of the bond is $887.14, its…

A: Face value = $1,000 Current price of the bond = $887.14 Time (in years) = 20 years Coupon rate = 10%…

Q: A 10-year semiannual bond’s coupon rate is 6%. Its current market price is $975 and par value is…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is…

A: Yield to maturity is the rate of return a bondholder will get if receive promise future cash flows…

Q: A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to…

A: Current yield is the annual yield earned from the value paid at time 0.

Q: A 10-year bond with coupons at 5% convertible quarterly is redeemed at 1500. If the bond is…

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

Q: A bond has a maturity value draw of 1.125 % from present worth and is paying discrete compound…

A: Present worth is the current value of cash flows that are expected to happen in the future.

Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…

A: Bond is referred as the fixed income instrument, which used to represent the loan that are prepared…

Q: he bonds issued by United Corp. bear a coupon of 5 percent, payable semiannually. The bond matures…

A: We need to use RATE function in excel to calculate yield to maturity(YTM).The formula is…

Q: Mitzi's, II. bonds offer a 5% semiannual coupon at a current market price of $989, 20 years to…

A: Par value = $ 1000 Coupon rate = 5% Annual coupon amount = 1000*0.05 = $ 50 Current price = $ 989