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: A $1,000 par value bond with a fixed 10% rate of interest pays coupons semiannually. What amount…
A: Given data; par value = $1000 interest rate = 10%
Q: What is the price of a 12 year bond paying semiannual interest at a rate of 9.5% with a yield to…
A: Par Value of Bond = $1,000Interest Rate = 9.5%Type of Interest = Semi-annual Calculation of…
Q: Calculate the current yield and yield to maturity on a 12.3%, 15-year bond that is quoted at 94.375.
A: Given details are : Current value of bond = 94.375 Time period = 15 years Par value = 100 Coupon…
Q: Using annual compounding, find the yield to maturity for each of the following bonds. Assume a…
A: Bonds are the agreement between lender and borrowers for the purpose of arrangement of capital.…
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925,…
A: The annual income (interest or dividends) from an investment is divided by the current price of the…
Q: what is the yield on 5,000, 12% Acts bond priced at 95 plus 20 comission
A: Introduction :- A bond is a financial instrument in which the issuer (debtor) owes the holder…
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…
A: GIVEN, FACE VALUE = $1000 PRICE = $950 INTEREST RATE = 8%
Q: Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. a. What is the…
A: Current selling price of the bond is the present value of the future payments. Future payments…
Q: A bond issued on February 1, 2004 with face value of $15200 has semiannual coupons of 4.5%, and can…
A: Bond prices can be quoted as either the clean price or the dirty price. The dirty price of a bond…
Q: The 12-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The market's required yield to…
A: Par value of bond (F) = $ 1000 Coupon rate = 13% Coupon amount (C) = 1000*0.13 = $ 130 Number of…
Q: Determine the purchase price at the indicated time before maturity of the following bond redeemed at…
A: Bond price is basically the discounted present value of future cash flow that the bond will…
Q: Compute the present value of a five-year bond with a face value of $1,000, a 10% annual coupon…
A: Present of the bonds = Present value of principal + Present value of interest payments where,…
Q: A company releases a five-year bond with a face value of $1000 and coupons paid semiannually. If…
A: Given: Face value =$1000YTM =8%Bonds issued =At premium
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950,…
A: given information face value = $1000 discount price = 950 interest rate = 6%
Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at…
A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence,…
Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at…
A: formula for calculate yield to maturity YTM = {coupon interest + (discount or premium / no of…
Q: You have the following information regarding an annual bond. What is the modified duration of this…
A: Modified duration of a bond shows the change in the value of the security as the value of the…
Q: bond
A: Formula to calculate the current yield of the bond is: Current yield = Annual coupon payment/Bond…
Q: For an 18-year, 3.09% annual-pay bond currently trading at par, calculate the approximate modified…
A:
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925,…
A: Given: Face value =$1000 Purchase price =$925 Interest rate = 8%
Q: What is the yield to maturity?
A: As no coupon payment is mentioned, this bond is assumed to be a zero coupon bond. A zero coupon bond…
Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4…
A: Solution: Present value of bond = P1,500 Discount rate = 4% Period = 1 year
Q: A 20-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…
A: COUPON RATE =10% PAR VALUE = 1000 YEARS TO MATURITY = 20 SEMI ANNUAL COUPON =1000 ×10%2=$50 NO OF…
Q: he market price is $725 for a 9-year bond ($1,000 par value) that pays 12 percent annual…
A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…
Q: For the following bond redeemed at par, in the table below, determine (a) the premium or discount…
A: given, par = $22000 coupon rate = 8.4% n = 12 ytm (r) = 5.3%
Q: Consider a 16-year, $1,000 par value, 4% annual-pay bond that is currently trading at a flat price…
A: Here, Current flat price = $870.07 Face value = $1,000 Time in years = 16 years Interest rate = 4%…
Q: A 20-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…
A: Bond is a debt instrument used to raise funds. It carries fixed interest charges that the issuer of…
Q: The 7-year $1000 par bonds of Vail Inc. pay 11 percent interest. The market's required…
A: A bond is a kind of debt financial instrument that is being issued by corporations and the…
Q: A bond has a maturity value draw of 1.125 % from present worth and is paying discrete compound…
A: As per question= 1.03^4= 1.125 times Compound Interest Rate=3% Time Before maturity=4 years…
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $850,…
A: Issue Price Paid of Bond =$850 Bond Interest rate = 8% Face Value of Bond = $1000 Interest Paid =…
Q: The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to…
A: Hi there, Thanks for posting the questions. As per our Q&A guidelines, the solution for first…
Q: The market price is $800 for a 17-year bond ( $1,000 par value ) that pays 9 percent annual…
A: Market Price = 800 N = 17 years i.e. 34 semi annual payments Face Value = 1000 Coupon = Face Value *…
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 2-year discount bond with a face value of 1100 was purchased for 1000. What is the yield to…
A: Here, Face Value of Discount Bond (Future Value) is 1100 Purchase Price of Discount Bond (Present…
Q: Find the yield on ₱5,000.00, 12% ACTS bond priced at 95 plus ₱20 commission.
A: Given: Face value = ₱5,000 Coupon = 12% Bond priced = 95% Commission = ₱20
Q: A bond presently has a price of $1,030. The present yield on the bond is 8.00%. If the yield…
A: Formulas: Duration = -(Change in price)/(Change in YTM *Current price)
Q: A $1,000, 12 year bond carries a 3.5% coupon. If the prevailing market rate on the date of purchase…
A: Bond is a type of long-term debt instrument used by government and corporations to raise loan.
Q: A bond has a maturity value draw of 1.125 %o from present worth and is paying discrete compound…
A: Present value The amount of cash today that is equivalent in value to a payment, or to a stream of…
Q: For an 11-year, $1,000 par value, 5.08% semiannual-pay bond currently trading at $921.41, calculate…
A: Modified duration helps in determining the price change in the bond for 1% change in interest rate.…
Q: Which $10,000 bond has the higher yield to maturity, a20-year bond selling for $8,000 with a current…
A: Yield to maturity (YTM) is the rate which an investor earns when the bond is held till its maturity.
Q: A 20-year, 10% monthly-pay bond has a par value of $1,000. If the price of the bond is $887.14, its…
A: Face value = $1,000 Current price of the bond = $887.14 Time (in years) = 20 years Coupon rate = 10%…
Q: What is the bond equivalent yield on a $1 million T-bill that currently sells at 91.320 percent of…
A: Bond Equivalent Yield refers to the annual percentage return earned by an investor on the prevailing…
Q: Consider a 12%, 15 year bond that pays interest semiannually, and its current price is $675. What is…
A: Yield to maturity is the rate of return a bondholder will get if receive promise future cash flows…
Q: With an assumption of annual compounding, Frey, Inc. bond is a 5.00%, 15-year bond priced to yield…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 8% and face…
A: Zero coupon bond is a debt instrument which does not involve any coupon payment and is issued below…
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…
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- Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on the corporate bond?a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it be if there were only 9 or 8 years to maturity? Use the worksheet to compute the bond issue prices and enter them in the spaces provided. Bond issue price (9 years to maturity) __________________ Bond issue price (8 years to maturity) __________________ b. Compare these prices to the bond-carrying values found in the effective interest amortization schedule you originally printed out in requirement 3. Explain the similarity. c. Click the Chart sheet tab. The chart presented shows the price behavior of this bond based on years to maturity. Explain what effect years to maturity has on bond prices. Check your explanation by trying 8% as the effective rate (cell E10) and clicking the Chart sheet tab again. Also try 9%. When the assignment is complete, close the file without saving it again. Worksheet. Modify the BONDS3 worksheet to accommodate bonds with up to 20-year maturity. Use your new model to determine the issue price and amortization schedules of a 2,000,000, 18-year, 10% bond issued to yield 9%. Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as BONDST. Hint: Expand both amortization schedules to 20 years. Expand the scratch pad to 20 years. Modify FORMULA1 in cell F17 to include the new ranges. Chart. Using the BONDS3 file, prepare a line chart that plots annual interest expense over the 10-year life of this bond under both the straight-line and effective interest methods. No Chart Data Table is needed. Put A23 to A32 in the Label format and then select A23 to A32, D23 to D32, and B40 to B49 as a collection. Enter all appropriate titles, legends, formats, and so forth. Enter your name somewhere on the chart. Save the file again as BONDS3. Print the chart.
- Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 500 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,000 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Required Assuming the market rate of interest is 10%, calculate the selling price for each bond issue.Find the yield on ₱5,000.00, 12% ACTS bond priced at 95 plus ₱20 commission.
- Using the formula given below: Rbonds =( F − P)/P, if the market price of a $1,200-face-value discount bond changes from $900 to $925, the yield to maturity decreases or increases by enter your response here%. (Round your response to two decimal places.)1. Calculate the total annual interest, total cost, and current yield for the bonds. (Round the"Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.)Bond Number of bonds purchased Selling price Total annual interest Total cost Current yieldMuni 5 22 6 81.375 $ $ %For an 11-year, $1,000 par value, 5.08% semiannual-pay bond currently trading at $921.41, calculate the approximate modified duration based on a change in yield of 72 basis points. How to interpret your result? A. 9.7281, indicating that the approximate change in price for a 1% change in yield to maturity (YTM) is 9.7281%. B. 9.0017, indicating that the approximate change in price for a 1% change in yield to maturity (YTM) is 9.0017%. C. 8.1994, indicating that the approximate change in price for a 1% change in yield to maturity (YTM) is 8.1994%. D. 6.9884, indicating that the approximate change in price for a 1% change in yield to maturity (YTM) is 6.9884%.
- Using the following information, determine the maturity risk premium on 10 year bonds: Rate % inflation 0.74 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.37 10y AA Corporate 7.62Using the following information, determine the default risk premium on the 10 year AA corporate bond: Rate % inflation 1.96 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.46 10y AA Corporate 7.76Consider a 16-year, $1,000 par value, 4% annual-pay bond that is currently trading at a flat price of $870.07. The capital gains yield (CGY) is closest to A. 0.3014%. B. 0.4468%. C. 0.5180%. D. 0.6202%.
