A RM1,000 callable bond with 9% coupons payable semi-annually was redeemed for RM1,100. The bond was bought for RM918 to yield a nominal rate of 10% convertible semi-annually. Calculate the number of years the bond was held. Provide your answer to the nearest integer.

Q: The 4-year bond with a nominal value of 1.000 TL pays coupons once a year. It is known that the…

A: Formula to calculate price of the bond is: Bond Price =C×1-1+r-nr+FV(1+r)nWhere,n =number of Period…

Q: A 11​-year bond pays interest of $28.60 ​semiannually, has a face value of $1,000​, and is selling…

A: Semi Annual Interest Time Period = 11 Years × 2 =22 semi annual periods Face Value = 1000 Price of…

Q: A firm has issued P1,000 bonds with a 10-year maturity and a face value of P1,000,000. Quarterly…

A: Face value of the bond = P1,000 Quarterly maturity period (n) = 40 (i.e. 10 years * 4) Quarterly…

Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8…

A: Relevant information : Face Value :  $1,000 Coupon rate : 9.5%

Q: Hassan Company bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a…

A: loYield to Maturity refers to the expected percentage of return calculated by the investor after…

Q: Three years ago, Jack’s Automotive Jacks issued a 20-year callable bond with a $1,000 maturity value…

A: Yield to maturity is the bond's return if the bond is held to maturity. For a coupon-paying bond,…

Q: A zero-coupon bond has a face (par) value of $10,000. The bond is sold at a discount for $6500 and…

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

Q: A bond certificate with a value of P 1,081,038.07 has a par value of P 1,000,000.00 and a redemption…

A: Using financial Calculator, PV (Price) = P 1,081,038.07  FV (Face Value) =  P 1,030,000.00 N = 10…

Q: XYZ has issued a 5-year coupon bond with face value $1000. Coupon rate is 6.7 percent per annum and…

A:

Q: A $3,000,000 issue of a 30-year bond, redeemable at par, offers 7.00% coupons payable semi-annually.…

A: Bond value is the present value of all the expected cash flow a bond will generate if held till…

Q: A three-month treasury bill sold for a price of $99.311998 per $100 face value. What is the yield to…

A: Solution : Price (P) = $99.311998 Face value (FV) = $100 time (n) = 3 month or 3/12 = 0.25 year…

Q: what is the par value of the bond?

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: A 12-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.00% (3.000% of face…

A: Face value of the bond = $1,000 Coupon rate = 6% Semi annual coupon rate = 6%/2…

Q: A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year. How…

A: The capital gain on the financial securities refers to the gain and loss arising due to the sale and…

Q: A firm issues a 10-year bond with a face value of $1,000 and annual coupon payments of $100.…

A: In this question we need to compute the yield to maturity of bond which will make its present value…

Q: The

A: Given in question  Face value $1,000 Call price $ 1,070 Call year 5 Coupon rate 11% semi annual…

Q: A bond of $40,000 was issued by the Central Bank on August 17, 2012, with a 30-year maturity. The…

A: Bond price refers to the discounted present value of the payments made in the future. It is the…

Q: An 8% corporate bond with a face value of P100,000 matures in 5 years. The yield to maturity is 7%…

A: Current price of the bond is the present value of all future cash flows associated with the bond.…

Q: A 7 year bond with maturity value of $5504.1 and a yield rate of 5% was sold 15 months before…

A: Maturity value of the bond = $5,504.10 Yield rate = 5.00% Number of years = 7 years Purchase value…

Q: A $200,000, 6.50% bond redeemable at par, with semi-annual coupon payments, is purchased 12 years…

A: Bond Purchase Price: The present discounted value of a future cash stream provided by a bond is…

Q: What is the yield to maturity at a current market price of RM799?

A: Yield To Maturity: Yield to maturity is the amount that a bond is expected to yield after a certain…

Q: Suppose that a company issues $10000 face value discount bond maturing in one year.What is the price…

A: The bond is a fixed-income debt security. The current price of the bond is the discounted value at a…

Q: Millies company has issued a 10% coupon inteest rate,10 years bond with a ksh. 1000 pa value which…

A: The Current price of the Bond is the present value of its expected future cash flow which is…

Q: A bond with a face value of $1,000 was issued at par (sold for its face value) 5 years ago when…

A: RequiredCompute the Duration of the bond.

Q: A 20-year bond has a coupon rate of 6% annually and a principal of $1,000.00. Alternative bonds are…

A: Value of bond is present value of coupon payment plus present value of par value.

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: A bond with $40 coupons every 6 months is purchased at a discount to yield ją = 8%. If the absolute…

A: Bonds are the interest-paying securities that are issued by big corporations or the government to…

Q: A 25-year zero-coupon bond is selling for $450. What was the annual YTM on that bond using annual…

A: In this question we require to calculate the annual YTM on a zero coupon bond. This question can be…

Q: You are considering the purchase of a $1,000 face value bond issued by ABC company. The bond pays 9…

A: Bond is the fixed income security which provides its holder with the promise of future coupon…

Q: A bond makes two $45 coupon payments each year. Given the bond's par value is $1,000 and its price…

A: Given, Semi -annual coupon =$45

Q: Smithson Co.'s Class A bonds have 10 years to go until maturity. They have a $1,000 face value and…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: A bond matures in 15 years and pays an 8 percent annual coupon. The bond has a face value of $1,000…

A: Current yield = coupon price /current market price Yield on bond is rate we earn if we held the bond…

Q: The face value of the bond is $10,000 with annual coupon payment. The maturity period is 6 years…

A: The bond duration is used to measure the actual time it takes for the bond to recover its costs…

Q: A bond has a $1,000 face value, a market price of $1,045, and pays interest payments of $74.50 every…

A: We need to compute the coupon rate from below details : Face value of bond = $1000 Market price of…

Q: A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What…

A: Purchase price of bonds will be present value of maturity value and present value of interest…

Q: A $400,000, 8.50% bond redeemable at par, with semi-annual coupon payments, is purchased 10 years…

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

Q: You are given the following information aboutr a 20 year bond with face amount 4000. The bond has an…

A: A coupon bond is a debt obligation in which the coupons are also attached.

Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was…

A: Par value (FV) = $14,500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 =…

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: If a bond is currently selling at RM1,100 and a par value of RM1,000 with 10 years to maturity, a 10…

A: Given: Face value = Rm 1,000 Years = 10 Coupon rate = 10%

Q: Intal Corporation bonds have a coupon of 14%, pay interest semiannually, and mature in 7 years. Your…

A: Coupon rate = 14% Semi annually = 14/2 = 7% Since it is semi annually, return on investment = 10/2 =…

Q: A 10-year bond with a $1,000 face value has a coupon rate of 8 percentpaid semiannually. If current…

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

Q: A 8-year Oman government bond with a face value of OMR1,000 pays a coupon of 8% (4% of face value…

A: Bonds are valued by the present value of all future cash flows. Future cash flows include periodic…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: