en ​$7,000 bonds redeemable at par bearing 10% coupons payable quarterly are sold seven years before maturity to yield 7.4% compounded annually. What is the premium or discount and the purchase price of the​ bonds?

Q: ​Stanley, Inc. issues 10​-year ​$1,000 bonds that pay ​$85 annually. The market price for the bonds…

A: Here, Market price for the bonds = $1,034 To Find: Part A. Present value of the bond =? Part B.…

Q: en percent. P195,000 interest is receivable every end of six months for five years. Determine the…

A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

Q: Moffet Ltd. bonds mature in 6 yrs and hald a YTM of 8.5%. The par value of the bonds is $1000. the…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: Fifteen $3,000 bonds redeemable at par bearing 7% coupons payable semi-annually are sold twelve…

A: Using the present value function in excel

Q: A Php 100,000,10% bond pays dividend every quarter for 8 years. The bond price at par and is…

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

Q: A $2400, 8.9% bond with semi-annual coupons redeemable at par in 8 years was purchased at 95.6.…

A: Because it is assumed that the book value trends in a straight line from the start value to the end…

Q: Twelve $10,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold six years…

A: Required: The purchase price of the bonds. Compute the premium or discount on the bonds.

Q: A $8500 bond bearing interest at 4.3% payable semi-annually is due in 7 years. Money is worth 5.9%…

A: Par value = $8500 Coupon rate = 4.3% Frequency of payment  = Semi annual

Q: Debt Valuation: Interest-Bearing Debentures.  At the beginning of the year, Marshall Square, Inc.…

A: Given: Maturity value = $100 million Number of years = 20 Coupon rate = 4.75% Compounding = Semi…

Q: 20,000 issue of twelve​-year bonds redeemable at par offers 7.9% coupons payable quarterly. What is…

A: Price of bond is present value of coupon payment and present value of the par value of bond…

Q: (Yield to​ maturity)  ​Fitzgerald's 15​-year bonds pay 8 percent interest annually on a ​$1,000…

A: Given: Particulars   Years 15 Coupon rate 8% Par value(FV) $1,000 Current Price (PV) $875…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Bonds are the long-term debt instruments of any business which carry a fixed rate of return, and…

Q: 9. Company BOND, issued 1,000 bonds with par value of $500 and coupon rate of 10%. Interest on bonds…

A: The bonds are issued at premium when market rate is lower than the issue price of bonds payable.

Q: ​Fitzgerald's 30​-year bonds pay 7 percent interest annually on a ​$1,000 par value. If the bonds…

A: Here, To Find: Part a. Yield to maturity of annual bond =? Part b. Yield to maturity of semiannual…

Q: A P 250 000, 14% bond pays dividend semi-annually for 12 years. The bond is redeemable at par. If…

A: Here we need to compute the YTM of this bond given the details. We can do so by using the "RATE"…

Q: One-year Treasury bills currently earn 3.45 percent. You expect that one year from now, 1-year…

A: Here, One Year Treasury Bill currently earn 3.45% Forward Rate if one year T-Bill is 3.65% Liquidity…

Q: Bonds and Stocks Valuation A) Sintokyo Berhad’s seven-year RM1,000 par bonds pay 9 percent interest.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: (Yield to​ maturity) The market price is ​$1,100 for a 9​-year bond ​($1,000 par​ value) that pays 9…

A: Market price = $1100 Par value = $1000 Coupon rate = 9% Semi annual coupon amount = 1000*0.09/2 =…

Q: A 12,000 bond redeemable at par in 20 years pays interest at 3 ½% compounded quarterly. Find the…

A: Par value (FV) = 12000 Coupon rate rate = 3.50% Quarterly coupon payment (c) = 12000*0.035/4 = 105…

Q: what is the price of this debt by general floating equation (long cut formula)?

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

Q: P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in…

A: The value of the bond is the sum of present value of all the dividend and the present value of the…

Q: Bonds issued by American Aero Inc. bear an 8% coupon, payable semiannually. The bonds mature in 10…

A: Using excel RATE function

Q: Q3. A company issues a $ 20,000 bond at a coupon rate of 7.5% payable semi-annually. Joan purchased…

A: When the yield to maturity changes the price of the bond changes in the opposite direction.

Q: One-year Treasury bills currently earn 2.25 percent. You expect that one year from now, 1-year…

A: Current Yield in one year Treasury Bill = 2.25% The yield increase by 2.45% in year 2  Liquidity…

Q: Question A: Johnson Motors's bonds have 10 years remaining to matu rity. Interest is paid annually,…

A: Using excel PV function

Q: Ten $9,000 bonds redeemable at par bearing 7% coupons payable semi-annually are sold eight years…

A: Lets understand the basics. When bond is issued for more than the face value of bond then it is…

Q: Ten $4,000 bonds redeemable at par bearing 5% coupons payable annually are sold nine years before…

A: Par value (FV) = $4000 Coupon rate = 5% Annual coupon amount (C) = 4000*0.05 = $200 Interest rate =…

Q: The 8percent annual coupon bonds of the ABC Co. are selling for $880.76. The bondsmature in 10…

A: Face value= $1000 Selling price= $880.76 Coupon rate= 8%, semi annual= 4% time= 10 years

Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…

A: Number of bonds = 15 Coupon rate = 8% (Compounded quarterly) Time period = 9 years Yield to maturity…

Q: Fifteen $4,000 bonds redeemable at par bearing 9% coupons payable quarterly are sold eight years…

A: Bonds are corporate debt units issued by the company and are secured as tradeable assets . Bonds…

Q: Nine $1000 bonds with 9.8% coupons payable annually are purchased nine months after a coupon…

A: A quoted price of a bond is the price at which the cash flows and face value are discounted. It is…

Q: The 8.5 percent annual coupon bonds of the ABC Co. are selling for $1,179. The bonds mature in 12…

A: YTM of the bond is the rate of return a bond generates in its lifetime assuming ton be held till…

Q: The 7percent annual coupon bonds of the ABC Co. are selling for $950.41. The bondsmature in 8 years.…

A: The cost of raising the funds through borrowing or the financing cost is termed as the required rate…

Q: A P1,000,000 bond issue of 3%, 15 years maturity year was sold at 95% of the value. What is the rate…

A: Par value of bond = P 1,000,000 Coupon rate = 3% Coupon amount = 1,000,000*0.03 = P 30000 Years to…

Q: WB Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent. The par value of…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: A 12,000 bond redeemable at par in 20 years pays interest at 3 ½% compounded quarterly. Find the…

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

Q: A company issued zero coupon bonds of maturity of 10 years. The required rate of return is 8%.…

A: Zero-Coupon Bond or Deep-Discount discount Bond are debt securities that are issued at price lower…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Bond price will be equal to par value when coupon price is equal to yield

Q: Ten $9 000 bonds redeemable at par bearing 7% coupons payable semi-annually are sold eight years…

A: Bonds are financial instruments that will be traded in the open market. The face value of bond is…

Q: Debt Valuation: Interest-Bearing Debentures. At the beginning of the year, Marshall Square, Inc.…

A: Note: As per the policy we are supposed to solve the first three sub-parts at a time. Kindly repost…