ACT has an outstanding bond with a face value (principal) of ₱1,000.00 which would mature in 10 years. The bond pays 5% interest payable semi-annually. If the yeild (effective) rate on similar bonds is 14%, what is the current market value of the bond?

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A: Bond Valuation: It determines the intrinsic or fair value of particular debt security.

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A: In this we have to calculate the yield to maturity of bond and calculate effective cost of bonds.

Q: ACT has an outstanding bond with a face value ( principal) of 1,000which would mature in 10 years.…

A: Current market value = present value of all future cash flows   Here FV = 1000; nper (or time…

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A: Calculation of Value of Bond: Excel Spreadsheet: Excel Workings:

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Q: A $1,000 face value bond issued by the Purud Company currently pays total annual interest of $80 per…

A: In financial calculator: Enter FV = 1000 Enter n = 13 (life of the bond) Enter PMT = 80 (interest)…

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

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

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%

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A:

Q: A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding.…

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Q: a bond pays P340 interest per year and has a face value of P8,328 at the end of 9 years, when it has…

A: Current value of bond = sum of present values of all cash flows Here pmt = 340; nper = 9; fv = 8328…

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 bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years.…

A: Given: Coupon amount = P6000 Face value = P450,000 Years = 30 Interest rate = 2%

Q: ACT has an outstanding bond with a face value (principal) of Php. 1,000 which would mature in 10…

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A: Price of bond =Present value of coupon payment +Present value of par value of bond.

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

Q: Your yield for maturity on the Abner Bond is %

A: Bond Yield: It refers to the minimum return acceptable to the bondholers for investing in the…

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A: Since Interest is paid semiannually , i =3%, n= 30 Year Cashflow Amount Pvf 3% Pv 1-30 Interest…

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A: When required rate of bond equal to coupon rate than price of bond equal to par value of bond.

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A: Par value (FV) = $5000 Years to maturity = 15 Years Coupon rate = 8.4% Semi annual coupon amount (C)…

Q: A company has issued 11-year bonds, with a face value of Php1,000,000, in P1,000 units. Interest at…

A: Given, Face value of the Bond (P) = Php 1,000,000 Nominal interest (C) = 100,000 Interest = 15%…

Q: Blue Co. holds the following bonds which all have a yield to maturity of 15% and matures in 10…

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Q: ABC Trucking has issued an 8 percent, 10 year bond that pays interest semiannually. If the market…

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Q: Determine the present worth if the bond pays 12% compounded annually?

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A: Hence, the semi -annual interest payment is $44.5.The semi- annual interest payment is calculated by…

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A:

Q: The semi-annual, twenty-year bonds of Bempa, Inc. are selling at par and have an effective annual…

A: The amount of each interest payment or the amount of each coupon payment can be found through the…

Q: - A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding-…

A: The Price of the bond refers to the present value of the coupon cash flows and the maturity value.…

Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5…

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Q: The Saleemi​ Corporation's ​$1,000 bonds pay 5 percent interest annually and have 13 years until…

A: Bonds are long-term financing debt. It is a company that raises funds for its business. In return, a…

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: Assume that Beach Inc. has an issue of 20-year $1,000 par value bonds that pay 7% interest,…

A: The value of the bond is the current price of the bond. It is the present value of the cash flows…

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A: Year of Bond =20 Annual payment =$70 Face Value =$1000

Q: Blue Co. holds the following bonds which all have a yield to maturity of 15% and matures in 10…

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

A: The bond price is calculated as the present value of coupon payments and face value

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Q: then the YTM for this bond is closest​ to:

A: Introduction: The term YTM or yield to maturity can be defined as the return which is expected to be…