If a $ 3.000, 12% semiannual bond is purchased for $3.100 and sold 5 years later for $2.900. What was the quarterly yield on the investment?

Q: The nominal rate of return is ______% earned by an investor in a bond that was purchased for $963,…

A: Bond It is an obligation security, where borrowers issue securities to fund-raise from financial…

Q: A 1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be…

A: Par value = 1500 Years to maturity = 10 Years Coupon rate = 15% Coupon amount = 1500*0.15 = 225…

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: A bond has 5 years to its maturity .It was purchased for 50,000 TL and had a return 12% per year…

A: Computation of present worth of bond based on the yield:Coupon rate=50000Return=12% per annum…

Q: A $3,500,000 issue of a 30-year bond, redeemable at par, offers 9.00% coupons payable semi-annually.…

A: The question is based on the concept of Financial Accounting.

Q: A 20,000, 1 ½% bonds with annually coupons are priced to yield 4 ½% converted annually. If it is…

A: Face value = 20,000 Coupon rate = 1.50% Yield rate = 4.50% Redemption to face value ratio = 104%…

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

A: A bond is a debt instrument that is issued by governments and companies which forwards them a loan…

Q: A $3,000,000 issue of a 30-year bond, redeemable at par, offers 7.00% coupons payable semi-annually.…

A: Bond value is the present value of all the expected cash flow a bond will generate if held till…

Q: A $3000 bond that pays 9%semi-annually is redeemable at par in 15 years. Calculate the purchase…

A: Solution:- We know, the purchase price of bond is the present value of amounts receivable from the…

Q: A 15,000, 5 ½% bonds with quarterly coupons is priced to yield 4 ½% converted quarterly. If it is…

A: The question is based on the concept of Bond valuation and pricing. The price of a bond is…

Q: A 6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon…

A: The amount that is received by the bond holder above the par value of the bond when the bond is…

Q: A 15-year, 11% coupon bond with semi-annual payment and a par value of $1,000 may be called in 5…

A: Since you have asked a question with multiple parts, we will solve the first parts for you. Please…

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: A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently…

A: Calculation of market value of bonds: Excel spreadsheet:

Q: A 6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon…

A: Given: Face value = $1000 Coupon rate = 6% = 0.06 The formula to compute the total price paid is:…

Q: nd pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the face…

A: In this we need to calculate the face value of bond.

Q: A 7 year bond with maturity value of $5504.1 and a yield rate of 5% was sold 15 months before…

A: Maturity value of the bond = $5,504.10 Yield rate = 5.00% Number of years = 7 years Purchase value…

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: 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: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…

A: Par value = P1000 Coupon rate = 5% Coupon amount = 1000*0.05 = P50 Years to maturity = 10 Years Bond…

Q: The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon…

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

Q: If a $ 3.000, 12% semiannual bond is purchased for $3,100 and sold 5 years later for $2.900. What…

A: Purchase price (P0) = $3100 Selling price (P1) = $2900 n = 5 years = 20 quarters Total coupons…

Q: Shannon purchases a bound for $952.00. The bond matures in 3 years, and Shannon will redeem it at…

A: In the given problem we require to calculate the coupon rate on bond using following details:…

Q: t20 years, find the coupon payment, redemption value, purchase price and bond premium. (Bond…

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: A person purchased a 10-year, 5 percent coupon (semiannual payments) bond for $1,050.00, what is the…

A: Par value = $1000 Coupon rate = 5% Semi annual coupon amount = 1000*0.025/2 = $25 Price of bond =…

Q: Compute the present value for each of the following bonds a. Priced at the end of its fifth year, a…

A: To Find: Present Value of Bonds

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: 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: A 25,000 5% bond with coupons payable semi-annually is redeemable at 97% at the end of 10 years. If…

A: Par value = 25000 Coupon rate = 5% Coupon amount = 25000*0.05/2 = 625 Redeemable price = 25000*0.97…

Q: A 25-year zero-coupon bond is selling for $450. What was the annual YTM on that bond using annual…

A: In this question we require to calculate the annual YTM on a zero coupon bond. This question can be…

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: You wish to sell a bond that has a face valueof $5,000. The bond bears an interest rate of…

A: First, calculate the coupon amount:

Q: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the…

A: Modified duration = Duration / (1 + Ytm / n)

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: The nominal rate of return is % earned by an investor in a bond that was purchased for $901, has an…

A: Given information: Purchase price : $901 Selling price : $1031 Face value : $1,000 Annual coupon :…

Q: A $10,000 bond (face value) with 76 interest payable quarterly is purchased for $7000. If the bond…

A: The return (whether it is a loss or gain) on a investment for a particular period of time span is…

Q: A Php 50,000 bond with rate of 8% annually pays dividend quarterly is redeemable at par at the end…

A:

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: What is the yield to maturity for a bond paying $45 semi-annually that has twelve years until…

A: Given information : Coupon (Semi annually) = $45 Time to maturity = 12 years Selling price = $975

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: 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: One hundred $1,000 bonds having a bond rate of 8% per year payabie quarterly are purchased for…

A: The following formula will be used:

Q: Ten bonds are purchased for $9,083.25 and are kept for 5 years. The bond coupon rate is 5% per year,…

A: Ten bonds purchase price (P0) = $9083.25 Let the face value = F Total coupon for ten bonds (C) = 10…

Q: The 9 percent annual coupon bonds of the Jamesway Co. are selling for $1,008.20. The bonds have a…

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

Q: A $1,000, 9.50% semiannual bond is purchasedfor $1,010. If the bond is sold after three years andsix…

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

Q: Intal Corporation bonds have a coupon of 14%, pay interest semiannually, and mature in 7 years. Your…

A: Coupon rate = 14% Semi annually = 14/2 = 7% Since it is semi annually, return on investment = 10/2 =…

Q: What is the approximate yield to maturity for a $1,000 par value bond selling for $1,120 that…

A: Yield to Maturity: The yield to maturity (YTM) of a bond is the overall rate of return that the bond…