As with most bonds, consider a bond with aface value of $1,000. The bond's maturity is 25 years, the coupon rate is 9% paid annually, and the discount rate is 3%. What is the bond's Current Yield? Enter your answer as a percentage, without the %' sign, and rounded to one decimal. For example, if your answer is 0.031416, which is equivalent to 3.1416%, just enter 3.1

Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…

A: Yield to maturity is defined as the total return, which used to get anticipated on the bond when the…

Q: A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable…

A: i. Coupon amount = Face value * Coupon rate Coupon amount = $1000 * 10.5%/2 Coupon amount = $52.50

Q: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…

A: YTM is the yield to maturity. It is the return earned from a bond if holding it till maturity. Bond…

Q: Carrie's Clothes, Inc. has a four-year bond outstanding that pays $50 annually. The face value of…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Carrie's clothes, has a five year bond oustanding that pay $60 annually. The face value of each bond…

A: a.Calculation of Coupon Rate of Bond:

Q: What is the coupon rate for a bond with a face value of $1,000, 8 years to maturity, a current price…

A: Data given:: Face value =$1000 n=8 years Current price = $914 Yield to maturity = 8% Assumed…

Q: Madsen Motors's bonds have 19 years remaining to maturity. Interest is paid annually, they have a…

A: Bonds are issued by the government and corporations to raise finance. The lender pays the bondholder…

Q: A bond pays an annual coupon of 7% on a face value (par) of $1,000. The price of the bond is $1,020.…

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

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, an 10% semiannual coupon, 20 years…

A: Yield to maturity (20*2) 40 coupon amount (PMT) = 10%*1000/2 50 Face value (FV) 1000 Yield…

Q: What is the value of the bond?

A: Bond: It is a debt instrument issued by the company from the investors to raise capital for the…

Q: There is a freshly issued 10 year inflation-linked bond with a face value of $1,000. Inflation in…

A: In case of Zero coupon bond no coupon shall be paid during the life of the bond. Therefore,…

Q: Callaghan Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a…

A: The current price of a bond is the present value of its expected future cash flow which is…

Q: The market price of a 10-year bond is 984$, its yield to maturity is 8% per year, and annual coupon…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

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: Schmidt Co. is offering a 7.9% bond with a price of $900.40, the ytm is estimated at 9.12%., and…

A: Given: Coupon Rate = 7.9% YTM = 9.12% Face Value of Bond = $1000 Present Value of Bond = $900.40…

Q: As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 21 years,…

A: We require to calculate the bond value  in one year i.e. after one year in this question from…

Q: Consider three 5-year regular coupon bonds; each has a face value of $100. All bonds mature on the…

A: Time Period = 5 years Face Value = 100 Compute YTM on bond A: Using Rate function in excel to…

Q: Carrie's Clothes, Inc. has a six-year bond outstanding that pays $80 annually. The face value of…

A: Company issues bonds for the purpose of raising some funds and these are all considered to pay fixed…

Q: A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon…

A: Yield to maturity is the return earned by the bond holder by holding bond till maturity.

Q: What is the current market price of these bonds?

A: Information provided: Term to maturity: 10years Future value: $1000 Coupon payments: $80 Yield to…

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: Callaghan Motors' bonds have 6 years remaining to maturity. Interest is paid annually, they have a…

A: In the following question we require to calculate the bond's current market price using following…

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: A bond with face value $1,000 has a current yield of 7.1% and a coupon rate of 9.1%. a. If…

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…

Q: Carries Clothes, Inc. has a five -year bond outstanding that pays $60 annually. The face value of…

A: Given that;Face value is $1,000Annual coupon payment is $60Current price or present value of the…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: What is the bond's nominal annual yield to maturity (YTM)?

A: Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it…

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 6 years to…

A: BondIt is the instrument of the indebtedness of an issuer of the bond to the holders of the bond.

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, an 12% semiannual coupon, 9 years…

A: Bond price: Bond price is the current price of the payment. Payment includes coupon payment and…

Q: Moerdyk Corporation's bonds have a 9-year maturity, a 7.75% semiannual coupon, and a par value of…

A: The price of a bond can be calculated using the PV function in excel. We have to select the inputs…

Q: Nungesser Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 19 years…

A: We need to calculate the price of the bond using following details: Par Value of Bond = $1000 Coupon…

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 19 years to…

A: Bond price is the current value of the future payments at a given rate of interest. Future payments…

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: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…

A: Yield to Maturity is the yield an investor can expect when the bond is held till maturity.

Q: Madsen Motors's bonds have 9 years remaining to maturity. Interest is paid annually, they have a…

A: The market price of the bond will be the present value of the remaining coupons and the face value.

Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 20 years…

A: Computation of bond price: Hence, the bond price is $1,041.47.

Q: Madsen Motors's bonds have 11 years remaining to maturity. Interest is paid annually, they have a…

A: Time Period = 11 years Par Value = 1000 Coupon = Coupon Rate× Par Value = 9% × 1000 = 90 YTM = 11%

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: Calculate the current price of a $1,000 par value bond that has a coupon rate of 9 percent, pays…

A: In the given question we are required to calculate current price of the bond. Data given is as…

Q: Verbrugge Company has a level-coupon bond outstanding that pays coupon interest of $120 per year and…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Madsen Motors’s bonds have 23 years remaining to maturity. Interestis paid annually, they have a…

A: using financial calculator N (no. of years) =23 I/Y (rate)= 11% PMT (coupon payment) = 1000*9% =-90…

Q: Madsen Motors's bonds have 5 years remaining to maturity. Interest is paid annually, they have a…

A: Time Period = % years Coupon Rate = 6% YTM = 7% Par Value = $1,000

Q: Carrie’s Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of…

A: a) Bond's Coupon Rate = Annual Coupon / Face Value

Q: Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of…

A: Current price of the bond is the present value of future payments at a given interest rate. Future…

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: