gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of $10,000 wi year, payable annually. What rate of return will be realized if the purchaser holds the bond to maturity 9 year:

Q: Fingen's 11​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the…

A: Time Duration = 11 years Par Value = $1,000 Coupon Rate = 11% Market price = $1,110 The required…

Q: Bond matures in 18 years and pay 14 percent interest annually. If the bond is purchased for $1,225…

A: Face value = $1000 Bond price = $1225 Coupon rate = 14% Annual coupon amount = Face value*Coupon…

Q: our yield to maturity on the Abner bonds is _____​%.​(Round to two decimal​ places.)

A: Information Provided: Years to maturity = 16 Coupon Interest Rate = 12% Bond price = $800 Par Value…

Q: Abbott, Inc., plans to issue $500,000 of ten percent bonds that will pay interest semiannually and…

A: Bonds Payable: A bond is a debt instrument, and so it requires its issuing company to pay periodic…

Q: Clancey Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The…

A:

Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…

A: To calculate the bond price we will use below formula   Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…

Q: Larry's Bank buys 58 bonds of the Puppet House Corp. through a broker.  The bonds pay 10 percent…

A: Part A.Characteristics of the bond:Payment frequency = Semi annual, Period = Half year.Periodic…

Q: A 10-year, ₱20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding.…

A: Face value= 20,000, Coupon interest rate=8% semi-annually  Time period= 10 years  Yield to…

Q: Seaside issues a bond that has a stated interest rate of 12%, face amount of $40,000, and is due in…

A:

Q: Abner​ Corporation's bonds mature in 21 years and pay 13 percent interest annually. If you purchase…

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

Q: A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8%…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: Ocean Adventures issues bonds due in 10 years with a stated interest rate of 10% and a face value of…

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

Q: Charlotte's Clothing issued a 8 percent bond with a maturity date of 18 years. Six years have passed…

A: The price of a bond is the amount of money that investors are willing to pay for an existing bond.

Q: A company buys a 5-year zero coupon bond that will mature for $1800. It plans to use this asset to…

A: Value at maturity = $1800 Time period = 5 years First Payment = $307. 73 in 1st year Second Payment…

Q: Company H issues a $20,000,000 bond on January 1, 2020 with a coupon rate of 9%.  The present value…

A: Amortization Method: It is an accounting technique used to decrease the value of a loan or…

Q: Woodland Company issues bonds with a face value of $375,000 that pay 4% interest semiannually and…

A: First of all we will find the price of the bond with 4% market interest rate. We can find the price…

Q: A corporate bond pays 5% of its face value once per year. If this $5,000 10-year bond sells now for…

A: Bonds are financial instruments which provide fixed returns to its holders. Bonds actually have a…

Q: A $15,000, 5.5% bond is purchased 10.5 years before maturity to yield 8% compounded annually. If the…

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

Q: Barrett Enterprises issues bonds with a face value of $900,000 on their issue date.  The bonds…

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…

Q: McAllen Corporation is issuing a $20,000,000 20-year bond with a stated interest rate of 10%. This…

A: Bond   A bond is basically an interest-bearing loan instrument that is issued by the companies in…

Q: A company issues a $100,000 bond due in 4 years paying 7 percent interest annually at year- end.…

A: We require to calculate the present value of bond in this question. We can calculate the present…

Q: Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10 percent annual interest.…

A: Working note:

Q: On January 1 of this year, Ikuta Company issued a bond with a face value of $300,000 and a coupon…

A: Solution: Introduction:  A bond is an instrument of financial indebtedness of a bond issuer company…

Q: A 20-year bond with a face value of P 5,000 is offered for sale at P 3,800. The nominal rate of…

A: Bonds are one of the most traded financial asset in the financial market. It is demanded by the…

Q: Labadi Inc issues a bond that has a stated interest rate of 10%, face amount of $100,000, and is due…

A: Number of periods = 5 years*2 Number of periods = 10   Coupon rate = 10%/2 Coupon rate = 5%   Market…

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

A: Present value of all the expected coupon payments and the maturity value is the expected price of…

Q: A corporate bonds has a face value of $1000 with maturity date 20 years from today. The bond pays…

A: The current interest rate is compared to the rate of interest indicated on the bond to compute the…

Q: ABC Corporation’s recently issued bonds paying interest semiannually and maturing in 10 years. The…

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: A bank issues a 5-year bond that pays 3-month Euribor plus 50 basis points on a quarterly basis. The…

A: Bonds are the debt instruments issued for short term period or for long term. The price of bond is…

Q: earson Co issue its $140,000 at a price of 94, the stated rate is 6%, the bond term is 4 years, and…

A: Solution: Annual interest payment = Face value of bond * stated rate of interest  = 140000 *6%  =…

Q: Bushman, Inc., issues $200,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Future value is the value of an invested cash on a particular date which is equivalent to the value…

Q: Pearson Co issue its $193,400 at a price of 103, the stated rate is 9%, the bond term is 4 years,…

A: Solution: Annual interest payment on bond = Face value of bond * Annual stated interest rate

Q: 8200

A: The above problem can be solved by using the excel function Given: Sale price = $8,200, Face value =…

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 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: Company 'A' issues a bond at $1,000 and offers a payment of $50/year every year for 3 years. If the…

A: Current yield of the bond can be calculated by using the online financial calculator. Current market…

Q: An investor wishes to sell a 20 year, 4%, $40,000 bond that will mature in 9 years. The bond pays…

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

Q: Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Trew Company plans to issue bonds with a face value of $904,500 and a coupon rate of 6 percent. The…

A: Solution: Face value of bond = $904,500 Stated interest rate = 6% Market interest rate = 8.5% Period…

Q: Charlotte's Clothing issued a 8 percent bond with a maturity date of 18 years. Six years have passed…

A: Current Yield is the annual return on the current market price. Yield To Maturity is the rate of…

Q: James Corporation is planning to issue bonds with a face value of $501,000 and a coupon rate of 6…

A: Solution a: Computation of bond price Table values are based on: n= 14     i= 2.00%…

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: Ten bonds are purchased for $9,598.13 and are kept for 5 years. The bond coupon rate is 7% per year,…

A: Purchase price of the bond is $9,598.13. Coupon rate 7% Yield is 9% term is 5 years

Q: On January 1, 2020 HH Company wanted to purchase a 2,000 10-year bonds with a denomination of P1,000…

A: Bond Price Bond price is present value of the probable future cash flows. Future cash flow consists…