If Jackson’s food’s bond has 6 years remaining to maturity. Interest is paid annually, bond has a par value of $1000 and the coupon interest rate is 8%, and the market interest rate of 9%. Calculate the bond’s price? If Jackson’s food’s bonds have 20 years remaining to maturity. Interest is paid annually, the bonds have a $ 1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. Calculate the yield to maturity? Differentiate between the discount bond and the premium bond

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A:

Q: What is the coupon rate of the bond if coupons are paid semiannually?

A: Coupon Rate: It refers to the annual income expected by the bondholder for investing in the…

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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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

A: Price of bond is equal to present value of cash flows

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A: The provided information are: Par value 1000 Coupon rate 0.07 Years 18 Yield to maturity…

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Q: coupon

A: Formula to calculate the coupon rate is: Coupon rate = Coupon payment/Face value

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A: yield to maturity formula: ytm=coupon+face value-pricenface value+price2 where, n=years to maturity

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A: a) YTM if price is 829 N = 5 PMT = 1000*9% = 90 FV =- 829 FV = 1000

Q: A 6-year Circular File bond

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A: Answer

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

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