Larry's Bank buys 58 bonds of the Puppet House Corp. through a broker.  The bonds pay 10 percent annual interest.  The yield to maturity (market rate of interest) is 12 percent.  The bonds have a 10 year maturity. Using an assumption of semi-annual interest payments: A. Compute the price of a bond. B. Compute the total value of the 58 bonds.

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: The Florida Investment Funds buys 58 bonds of the Gator Corp. through a broker. The bond pays 10…

A: a)  Computation of bond price:

Q: Cullumber Railroad Co. is about to issue $296,000 of 6-year bonds paying an 11% interest rate, with…

A: The amount that will be received from the sale of these bonds will be equal to the present value of…

Q: The Desreumaux Company has two bonds outstanding. Both bonds pay $100 annua interest plus $1,000 at…

A: Calculation of Value of Bond: Excel Spreadsheet: Excel Workings:

Q: The saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of…

A: Face value =10000 Market price =8900 Coupon =5% MATURITY =9 years  Could =500 Annual

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: The Mills Company had issued a bond 10%, 10 year bonds with a face value of P1,000 each and paying a…

A: Bonds are the financial instruments that are issued by corporations for acquiring capital and funds…

Q: Fingen’s 16-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the…

A: given information Fingen’s 16-year, $1,000 par value bonds annual coupon = 1000 x 9% = 90  market…

Q: An investor purchases a bond 6 months after the issue. The bond will be redeemed at 105% eight years…

A: Price of a bond = present value of its future cashflows, let the purchase price be = P  Hence, P =…

Q: The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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

A:

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: Three years ago, Jack’s Automotive Jacks issued a 20-year callable bond with a $1,000 maturity value…

A: Yield to maturity is the bond's return if the bond is held to maturity. For a coupon-paying bond,…

Q: A well-known industrial firm has issued $990 bonds that carry 4% nominal annual interest paid…

A: Bonds refer to the financial instruments which are used by  the financial institutions  for raising…

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

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: Ten bonds are purchased for $8.856.11 and are kept for 5 years. The bond coupon rate is 9% per year,…

A:

Q: Allington Corp. issues $560,000 of 9% bonds that pay interest semiannually and mature in 10 years.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

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: Roman Destinations issues bonds due in 10 years with a stated interest rate of 5% and a face value…

A: The bonds are the financial instruments of the business that are used to raise the money from the…

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: Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest.…

A: A bond is a financial security issued by a corporation to obtain borrowing funds for a long-term…

Q: The Garraty Company has two bond issues outstanding. Both bonds pay$100 annual interest plus $1,000…

A: A coupon bond is a financial instrument that entails receipt of periodic payments, that is coupon…

Q: Abner​ Corporation's bonds mature in 23 years and pay 11 percent interest annually. If you purchase…

A: Face Value = $1000 (Assumed) Maturity = 23 years Coupon rate = 11% Coupon amount = $1000*11% = $110…

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: Fareed purchases a bond, newly issued by the Big Time Corporation, for $20,000. The bond pays $1,000…

A: Principal amount: Principal amount is the original amount of money borrowed by a person. In bonds,…

Q: ACT has an outstanding bond with a face value (principal) of ₱1,000.00 which would mature in 10…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: Ahmad is called in as a financial analyst to appraise the bonds of Riyadh Stores. The $1,000 par…

A: Given: Particulars   Face value(FV) $1,000 Coupon rate  10% Yield to maturity 10% Years…

Q: Krystian Inc. issued 8-year bonds with a face value of $100,000 and a stated rate of 5% when the…

A: Answer A) Calculation of Total Amount to be received over the Bond Period Total Amount to be…

Q: Last year, Sam Morris purchased a $1000 Dynamic Electronics corporate bond with an annual interest…

A: Face Value = 1000 Annual Interest rate = 6.5% Current Market Price of Bond = 900

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: 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: 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: Happy Hollow, LLC issues Ș50,000 bonds at 20% interest with quarterly interest payments. Bonds have…

A: Total Interest Received=Face Value×Interest Rate×Time

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: Hillside Excursions issues bonds due in 15 years with a stated interest rate of 11% and a face value…

A: Bond: The bond is a debt obligation under which the borrower of the debt is obliged to pay the…

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

A: Mark will receive principal amount of $1,000 at the end of 5 years. Coupon every year = 1000*0.06324…

Q: The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until…

A: Given, Face Value = $1000 Coupon rate = 7% Coupon payment = $1000*7% = $70 Current Price = $1095…

Q: What is the dirty price of this bond if today's date is April 1? Assume a 360-day year.

A: Information Provided: Clean price = $1001 Coupon rate = 6%

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 of this year, Houston Company issued a bond with a face value of $16,000 and a coupon…

A: Issuance of bond with face value = $16,000 Coupon rate = 5% Maturity period = 3 years