APIC ISSUEDA ZERO COUPON PAYMENT THAT MATURE IN 14 YEARS WHAT IS THE PRICE OF THE BOND IF INTEREST RATE IS 0.14? what is the price of the bond

Q: What is the bond's nominal coupon interest rate?

A: Answer:- 9.72% FV= 1000 Semi annual N=30*2=60 YTM=10.55/2=5.275%

Q: SuperB Inc. just issued bonds with a coupon rate of 4%, face value of $1,000, and 10 years to…

A: Bonds are the financial instruments that are issued by the financial institutions for raising funds…

Q: A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one…

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

Q: a company issued bond with a coupon payment of zero for 5 years if market interest is 0.077 what is…

A: Zero coupon bond do not carry the coupon payment So price of bond is present value of par value of…

Q: What is the Macaulay duration of a 3% bond with 3 years to maturity, discounted at a rate of 2% per…

A: Macaulay duration shows the time period required by investor to recover his invested amount in the…

Q: A zero coupon bond is selling for $575.04. The bond matures in 13 years and has a afce value of…

A: A zero coupon bond is usually offered at a discount price. As the name suggests, it does not pay any…

Q: Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first…

A: A discount bond is a bond that is issued for less than its par or face value. Discount bonds may…

Q: Springfield Nuclear energy Inc. bond's are currently trading at $1277.96. the bond's have a face…

A: yield to maturity formula: YTM=coupon+par - pricenpar +price2 where, n=years to maturity

Q: Arch Corp. bonds bearing a coupon rate of 8%, pay coupons semiannually, have 3 years remaining to…

A: In the above question we require to calculate the Yield to maturity of the bond from the details…

Q: Channel Marker Ships (CMS) has a 14-year callable bond with a $1,000 face value and a call value, or…

A: given, n = 14 par=$1000 price= $886 call price= $1070 called year= 6 m=2

Q: A 15 year, semi-annual bond has a coupon rate of 4%. The YTM is 4%. What is the bond's duration and…

A: Given: Years = 15 Coupon rate = 4% YTM = 4%

Q: what is the approximate yeild to maturiy (ytm)of bond that is currently selling for $1,150 in the…

A: Annual interest payments ($1000*14%)   $140

Q: A 5-year, 15% coupon bond is trading for $1,050. The current market interest rate is 18%. What is…

A: Using the duration format in excel

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 7 years to…

A: Given Information Par Value of Bonds =$1,000 Semi-annual Coupon rate =7% Years to maturity= 7 YTM=9%

Q: What is the bond's nominal coupon interest rate?

A: Face value FV = 1000 For semi annual N= 30*2=60 YTM= 10.55/2 = 5.275% Currnet price of bond = 925

Q: A corporate coupon bond of 7.0 percent is callable in five years for a call premium of one year of…

A: A callable bond is one which can be redeemed before the maturity at a call price which is above the…

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: Webley Corp. issued a $1,000 bond at a coupon rate of 12%. The bond has 30 years remaining, until…

A: The computation of the bonds present value as follows:

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: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 9 years to…

A: A bond seems to be a formal agreement or commitment between being an issuer as well as a holder that…

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

A: In the given problem we require to compute the bond's yield to maturity.

Q: A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 3.5% and…

A: 7a. using financial calculator, FV = 1000, N = 20, I/Y = 3.5 Compute PV = $502.56 Again, FV = 1000,…

Q: Odd Co. issued a 12-year bond with 0.08 yield to maturity and a 7% coupon rate. The par value of the…

A: (i) Answer - 3 Discount rate will be used to get the price of the bond 8% Yield to maturity

Q: Luna Inc. bonds currently sell for P1,500 and the same bond was originally sold at P1,500. This…

A: Originally sold price = P1500 Annual coupon payment = P37.50 Current price = P1500

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: Graystone bonds have a maturity value of $1,000. The bonds carry a coupon rate of 12%. Interest is…

A: Answer

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: 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: Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first…

A: Part (1) Answer: The maturity yield of the bond issued at the same time is equal to the 8.75% coupon…

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: Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 11…

A: Coupon payments means the interest paid by the firm to the bondholders. The coupon payment is…

Q: are these premium for discount bonds? What is the price of the bonds?

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

Q: A bond sells for $894.17 and has a coupon rate of 6.20 percent. If the bond has 13 years until…

A: Bonds are defined as financial instruments used by companies to raise additional funds from the…

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

A: Duration of bonds is the measure of sensitivity of price of bonds to the change in market interest…

Q: Lightning Electric’s outstanding bond has a $1000 maturity value and a 4.5 percent coupon rate of…

A: Bonds issued by company, are called corporate bonds. Companies issues bonds to collect the funds for…

Q: Brandt Corporation's 30-year bond has 10 years left until maturity. The 8% coupon bond has a par…

A: Part 1:We calculate the current yield by dividing the coupon payment by current price of the bond.

Q: Gabby's Garage issued a bond with a 10-year maturity, a $1,000 par value, a 10 percent coupon rate,…

A: The coupon rate is the interest rate of a bond that is used to determine the interest payment, the…

Q: ABC textile Company bonds will be mature after 5 years and they are selling at 77% of their face…

A: GIVEN, N=5 YEARS R=11% LET FACE VALUE = $1000 SELLING PRICE = 0.77 X $1000= 770

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: A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and face…

A: Zero coupon bond is a debt instrument which does not involve any coupon payment  and is issued below…

Q: What is the interest payment for this bond annually e) What is the interest payment on…

A: Introduction: Bonds can be defined as fixed income instruments. In this case loan is provided by the…

Q: A bond has the following terms: Principal amount $1,000 Semi-annual interest $45 Maturity 15…

A: BOND PRICE FORMULA: PRICE=P1+RN+INTEREST×1-11+RNR

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: