Joe must pay labilities of 1,000 due six months from now and another 1,000 due one year from now. There are two available investments 1. a 6-month bond with face amount of 1.000, a 10% nominal annual coupon rate convertible semiannually, and a 4 nominal annual yield rate convertible semiannually:and 2. a one-year bond with face amount of 1,000, a 5 nominal annual coupon rate convertible semiannually, and a 6 nominal annual yield rate convertible semiannually. What is Joe's total cost of purchasing the bonds required to exactly (absolutely) match the liablities? OA 1922.76 O B. 2159.83 OC2.385.36 O D. 2.774.91 OE3.092.74

Q: Arjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000, The bond pays $30 to…

A: Given: Face Value “FV” = $1000 Coupon = $30 Maturity payment = $1030

Q: Jason buys a 15-year $100 par value 8% bond with semiannual coupons. The price assumes a nominal…

A: Bond value = 100 Coupon = 8% Semi annual Term = 15 years

Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…

A: A bond is borrowing security that is issued by the company in order to raise funds from the market…

Q: Arjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000. The bond pays $60 to…

A: A) Principal amount = $1000 Term = 3 years Coupon rate = 60/1000 = 6% Coupon payment = 60

Q: Zachary is considering buying a bond issued by CSD that pays coupon interest semi-annually, has 17…

A: Coupon rate = 6%/2 = 3% Coupon interest = Semi- annually Coupon payment (PMT) = $1000*3% = $30…

Q: minimum yield that

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months.…

A: Given,  Number of periods(n) = 20 r = I/YR =10%/2= 5% PMT = $60 Face value (FV) = $1000

Q: Mark​ Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity…

A:

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: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each…

A: Data given: Coupon payment = P 600  Maturity value = P 10,000 Rate = 6% t= 2 years New interest rate…

Q: ACT has an outstanding bond with a face value (principal) of Php. 1,000 which would mature in 10…

A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…

Q: A 3-year corporate bond is issued on 1/5/19 with a face value of $100 and a coupon of 2% pa (paid…

A: Here,

Q: Aeri Lee is looking to invest in a two-year bond from Aegyo Productions Corporation. The company…

A: Yield to maturity (YTM) on a bond is the rate of return which investors expect if the bond is held…

Q: A $6,000 bond had a coupon rate of 5.75% with interest paid semi-annually. Bianc purchased this bond…

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

Q: Landon is considering the purchase of a $2500 bond from Braydon. There are 5 years remaining until…

A: Given Information : Offer price of bond : $2,500 Time to maturity (n) : 5×2=10  Face value of bond…

Q: Quinn purchases a bond for $29,000 when the market interest rate is 13% per year, compounded…

A: Bond is a debt security that is issued by organizations to raise debt funds from investors in…

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

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

Q: John buys a 10-year bond with annual coupons. The par value of this bond is 10000 as is the…

A: IRR is the minimum return which is required by an investor to make a profitable investment.

Q: Today, Joe paid $12,000 for a bond which has $10,000 face value. The bond coupon rate is 10% per…

A: The yield to maturity is rate of return realized on the bond when held till maturity of bond period…

Q: Mr. Simpson intends to buy a 4-year bond that promises to repay the face value of $2,000 in 4 years…

A: face value = $2000 Coupon rate = 2.25% Coupon Amount = 2000 * 2.25% = 45 Years(n) = 4 Interest…

Q: Stacy purchases a $60,000 bond for $57,500. The coupon rate is 6% per year payable quarterly. The…

A: The present worth of the bond will be the present value of the coupon and principal payments.

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: An investor has two bonds in her portfolio, Bond C and Bond Z. Eachbond matures in 4 years, has a…

A: Bonds: Bond is a long-term financial instrument issued by a company for which the company pays…

Q: Ten bonds are purchased for $ 9,340.69 and are kept for 5 years. The bond coupon rate is 6% per…

A: Given 10 bonds are purchased for 9340.69 and the face value of bonds should to be calculated. Let…

Q: Jack purchases a 30-year bond with par-value F. The bond matures at par-value and pays semiannual…

A: Bond:- Bond is a type of debt instrument which a company issues to borrow funds. Bonds provide the…

Q: An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a…

A: Bond C is a simple 11% coupon bond. Price of Bond  C = Annual Coupon* Present Value Annuity Factor…

Q: Billy has a bond paying semiannual coupons that has an annual coupon rate of 10%, a term of 15…

A: Billy has bond paying semi annual coupons. Annual coupon rate = 10% Term = 15 years Semi annual…

Q: The Saleemi​ Corporation's ​$1,000bonds pay 5 percent interest annually and have 13 years until…

A: A. Yield to maturity = [Interest +(Maturity value - Purchase Price)/number of years of…

Q: You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months.…

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

Q: What is the value of the bond?

A: Bond valuation refers to a method which is used to compute the current value of future cash flow of…

Q: An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and…

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

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: An investor's liabilities are given by two lump payments of £3,000 at the end of the first and…

A: Bonds are interest-paying securities that are issued by a corporation or the government to raise…

Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5…

A: Given Information, Face Value of the bond = $1000 Maturity = 5 years  Coupon Rate = 8.7%  Coupon…

Q: The Saleemi​ Corporation's ​$1,000 bonds pay 5 percent interest annually and have 13 years until…

A: Bonds are long-term financing debt. It is a company that raises funds for its business. In return, a…

Q: Sofia purchases a $5,000 7% eight-year par-value bond with annual coupons. If held to maturity, her…

A: A callable bond is one which the issuer has the right to buy back prior to maturity at a…

Q: Scooter wishes to sell a bond that has a face value of $1,075. The bond bears an interest rate of…

A: Face value (FV) = $1075 Coupon rate (C)  = 9.85% Coupon payments per year (Q) = 4 Yield rate =…

Q: what is the face-value of the bond if Bob realizes an overall yield of 3.36% per year effective over…

A: N (Time Period) = 10 Assuming Face Value of bond = 20,000 Coupon = 2%*Face Value = 2%*20,000 = 400…

Q: Corus Berhad is interested to invest in bonds. Currently, the financial manager is evaluating both…

A: Given: Bond A Coupon rate = 8% Maturity = 12 years Bond B Coupon rate = 7% Maturity = 13 years

Q: You are given the following information aboutr a 20 year bond with face amount 4000. The bond has an…

A: A coupon bond is a debt obligation in which the coupons are also attached.

Q: investor has two bonds in her portfolio, Bond C and Bond 2. Each bond matures in 4 years, has a face…

A: Price of bond is present value of cash flows associated with the bond (Coupon payments and maturity…

Q: Neptune Corporation's bond has a 10% coupon rate, pays interest semiannually, and matures in 15…

A: Bond price refers to the right price of a bond which is also called as the intrinsic value of the…

Q: A corporate bond has a face value of $10,000, a bond interest rate of 8% per year payable…

A: A bond is a fixed income instrument that represents a loan made by an investor to a borrower…

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: you intended to purchase a 10 year, $1,000 face value bond pays interestof $60 every 6 months if…

A: Computation of bond price Table values are based on: n= 20     i= 5.00%     Cash flow Table…

Q: You are considering a 10-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: The Saleemi​ Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…

A: Par value (FV) = $ 1000 Coupon rate = 6% Coupon amount (C) = 1000*0.06 = $ 60 Years to maturity = 14…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: