calculate the present value

Q: A mortgage bond issued by Automation Engineering is for sale for $8,700. The bond has a face value…

A: Introduction Yield To maturity: Simply means the rate of return the investors can expect on a bond…

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…

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: Use the following tables to calculate the present value of a $487,000 @ 5%, 5-year bond that pays…

A: Present Value of bond is calculated by the present value of annual interest payment and present…

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: Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest…

A: 1. ANNUAL COMPOUNDING     YEARS 10 COUPON RATE 6.00% PMT (COUPON AMOUNT) $60 INTEREST RATE…

Q: A 7 year bond costs $30,000 and will pay a total of $3,600 in interest over its lifetime. What is…

A: Simple interest (I) = P * R * T where P = Principle / Base amount R = rate of interest T = Time   R…

Q: Calculate the present value of an $80,000, 10%, five- year bond that pays $8,000 ($80,000 × 10%)…

A: Given details are : Par value of bond = $80000 Coupon on bond = $8000 Market rate of interest = 10%…

Q: se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays…

A: The present value of the bond is the future inflows from bonds discounted at the market rate of…

Q: YZ issued a bond with a par value of P1,000. The bond pays an interest of P35 each quarter, and has…

A: Par value (FV) = P1,000 Quarterly coupon payments (C) = P35 Years to maturity = 10 Years Number of…

Q: Use the following tables to calculate the present value of a $25,000, 7%, 5-year bond that pays…

A: Calculate the present value of coupon as follows: Present value of coupon = Coupon amount *Present…

Q: Use the following tables to calculate the present value of a $515,000, 5%, 5-year bond that pays…

A:

Q: Use the following tables to calculate the present value of a $763,000, 6%, 6-year bond that pays…

A: Present Value of a Bond = Present Value of Coupon payments + Present Value of Redemption Value…

Q: Use the following tables to calculate the present value of a $774,000 @ 6%, 5-year bond that pays…

A: Lets understand the basics. For calculating present value of bond, we need to use below formula. =…

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: Find the value of a bond maturing in 7​years, with a ​$1,000 par value and a coupon interest rate of…

A: given data is -  Face value = 1000 Coupon rate = 6.5% paid semi annually Coupon payment = 65 Yield =…

Q: What is the present worth of a $10000 bond that has an interest of 20% per year payable…

A: The bond is fixed-income security issued by the company to raise funds. The present worth of a bond…

Q: Consider two 30-year bonds with the same purchase price. Each has an annual coupon rate of 5% paid…

A: Here, Time To Maturity of both Bonds is 30 years Coupon Rate of Both Bonds is 5% Par Value of Both…

Q: Calculate the value of a ¢5,000-par-value bond paying quarterly interest at an annual coupon…

A: Par Value = 5000 Time Period (N) = 10 years or 40 Quarters Quarterly Interest Rate Required Return…

Q: What is the yield to maturity on a $1,000-face-value discount bond maturing in one year that sells…

A: Given information: Face value of bond is $1000 Price after one year is $800

Q: Showing your calculations, calculate the price of a $100,000 debenture bond that matures in 15…

A: The price of an asset is computed as the present value of the future cash flows associated with the…

Q: Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value…

Q: You purchased a $1000 10-year bond that pays $95 annually. If the present value of the bond is…

A: Yield to maturity  Years 10 coupon amount (PMT)  95 Face value (FV) 1000 Present value 1050

Q: Use the following tables to calculate the present value of a $791,000, 5%, 6-year bond that pays…

A: The present value of bond can be calculated as present value of coupon payments and present value of…

Q: Compute the specified quantity.A 4-year bond costs $20,000 and will pay a total of $2,800 in…

A: The total amount of interest is $2,800.The cost of bond is $20,000.Number of years is 4.The annual…

Q: What would you pay for a $65,000 debenture bond that matures in 10 years and pays $9,100 a year in…

A: Bond Price: It is the price paid by the bondholder for investing in the bond. Bond price is…

Q: Assume that a bond makes 30 equal annual payments of \$1,000$1,000 starting one year from today.…

A: Using excel PV function

Q: What is its annual interest rate r (as a percent)?

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…

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: What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually…

A: Bond which is selling above par value is called premium bond

Q: Consider an investor who, on January 1, 2XX1, purchases a TIPS bond with an original principal of…

A:

Q: calculate the present value of a $375,000 @ 5%, 5-year bond that pays $18,750 interest annually, if…

A: Information provided: Face value = $375000 Time to maturity = 5-year Market interest rate = 10%…

Q: A bond with 12 years to maturity has an annual interest payment of $65. If the bond sells for its…

A: Given information: Par value of bond is $1,000 Annual interest payment is $65 Number of years is 12

Q: What is the present worth of a $25,000 bond that was purchased for $23,750 and has an interest of…

A: Preset worth is the present value of inflows less present value of outflow. For a bond, present…

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: Use the following tables to calculate the present value of a $608,000 @ 6%, 6-year bond that pays…

A: Present value  = Present value of principal + Present value of interest payments where,…

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: • What is the value of a 6%, 10-year bond with a redemption value of $20,000 that pays dividends…

A: The value for the bonds would be considered on the basis of interest rate that is being compounded…

Q: corporation’s bonds mature in 23 years and pay 7 percent interest annually. If you purchase the…

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

Q: You own a 20-year, $1,000 par value bond paying 7 percent interest annually. The market price of the…

A: In the above question we require to compute the Bond's expected rate of return. We can solve this…

Q: What would be the selling price of a 10-year bond with face value of 100,000, interest at 20% which…

A: Face value = 100000 The bond pays quarterly interest Coupon = (20% of 100000) / 4 = 5000 Interest…

Q: If the annual interest rate printed on the face of a bond is 10 percent, the face value of the bond…

A: Here, Annual Interest rate = 10% Face value of the bond =$1,000 Present value of the bond = $1,250…

Q: Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 9…

A: Answer: Calculation of the present value of the payment of $8,981, if the interest rate is 4%:…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.