A premium bond is purchased to yield 4% convertible semiannually. The amount of premium amortized in the third payment is 4.10. Find the amount of premium amortized in the 6th payment.
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- A bond has a maturity value draw of 1.125 %o from present worth and is paying discrete compound interest at an effecuve annual rate of 3 percent. Determine the following at a time four years before the bond reaches maturity value compounded continuously, if that discount equal S 112. (a) Present and future worth.. (b) Discrete compound rate of effective interest which will be received by a purchaser if the bond were obtained for $700. (c) Repeat part (a) for the case where die nominal bond interest is 3 percent compounded continuouslyFind the bond premium and purchase price on a P2,000 bond with interest at 2% compounded semi-annually, redeemable at par for 8years, if it is to yield 4% compounded semi-annuallyA 8-year bond with semiannual coupons is bought at a discount to yield 9% convertible semiannually. If the amount for accumulation of discount in the 14th coupon is $9, find the total amount for accumulation of discount during the first 4 years in the bond amortization schedule.
- A bond has a maturity value of $ 3000 and is paying discrete compound interest at an effective annual rate of 3 percent. Determine the following at a time four years before the bond reaches maturity value. 1- Discount. 2- Discrete compound rate of effective interest which will be received by a purchaser if the bond were obtained for $ 2200 3. Present worth for the case where the effective annual bond interest is 5 percent compounded continuouslyCalculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the bond’s YTM is 10 percent and interest is paid semiannually. Calculate this bond’s modified duration. Assuming the bond’s YTM goes from 10 percent to 9.5 percent, calculate an estimate of the price change.Calculate the quoted price on June 1, 2011 of the bond outlined below. (Assume that the face value is $100, that the purchase price is $923.19, that the bond interest is paid semiannually, that the bond was originally issues at its face value, that the bond is redeemed for its face value at maturity and that the market rate is compounded semiannually)
- The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to maturity on a comparable-risk bond is 5 percent. The current market price for the bond is $1,080. A. Determine the yield to maturity. B. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? C. Should you purchase the bond at the current market price ? A. What is your yield to maturity on the Vail bonds given the current market price of the bonds? Round to two decimal placesCalculate the YTM for the following bonds.a. A 12 percent, 20‐year bond with a current price of $975b. A 6 percent, 10‐year bond with a current price of $836c. A 9 percent, 8‐year bond with a current price of $714If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be A. greater than or less than $500,000, depending on the maturity date of the bonds B. equal to $500,000 C. less than $500,000 D. greater than $500,000
- A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded quarterly. If the bond interest is payable quarterly, what is the purchase price of the bond?A bond is brought on Aug 21, 2001 to yield 4% interest. A bond of $1,000 at 6% pay dividend semiannually and will be redeemed at 110% on Aug 21, 204. Calculate the pric of the bond? a) $1.155.06 b) $1,122.81 (c) $1,133.78 d) $1,144.81The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?
