Linda is interested in purchasing a corporate bond that was issued with an 8% annual coupon a semiannual interest payment of $40, and maturity in fifteen years. What is the par value of this bond?
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Four years earlier, Janice purchased a $1,000 face value corporate bond with a 6% annual coupon and maturing in 10 years. At the time of the purchase, it had an expected yield to maturity of 8.76%. If Janice sold the bond today for $1,088.39, what rate of return would she have earned for the last four years?Lola Ruiz has a bond that has 10 years to maturity, a face value of $1,000, an 7 percent interest rate, and a market price of $1,350. What is the dollar amount of annual interest on this bond?
- Billy has a bond paying semiannual coupons that has an annual coupon rate of 10%, a term of 15 years, and both face and redemption values of 20,000. Coupons are paid at the end of each 6 month period, starting 6 months after issue. Billy sells the bond to Mandy 34 months and 15 days after issue at an annual yield of 8% convertible semiannually. What price does Mandy pay Billy?Isabel prefers to purchase bonds that contain a sinking fund provision to protect her from any potential loss of her invested capital. She purchased a 20-year, $20,000 sinking fund bond with a 12% coupon, paid seml-annually, for $18,900. If the company calls the bond after 10 years, and the call penaity requires a payment of $30 per $1,000 of face value, what are the yeilds to maturity and yeild to call on this bond? -previous answered questions were wrong, show calculations.Last year, Joan purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.84%. If Joan sold the bond today for $999.13, what rate of return would she have earned for the past year? Round your answer to two decimal places.
- Six years ago, Rafael Sandino bought a 6%, 30-year corporate bond for $1,050. If he keeps the bond until maturity what will be his yield to maturity? Assume he receives interest checks semiannually. Round to the nearest hundredth of a percent.Jimmy has a bond with a $1,000 face value and a coupon rate of 9.5% paid semiannually. It has a five-year life. If investors are willing to accept a 14 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? Show your work. What is the impact of paying interest semi-annually rather than annually? Explain.BA Corp is issuing a 10-year bond with a coupon rate of 8 percent. The interest rate for similar bonds is currently 6 percent. Assuming annual payments, what is the value of the bond? Knight, Inc., has issued a three-year bond that pays a coupon rate of 6.10 percent. Coupon payments are made semiannually. Given the market rate of interest of 5.80 percent, what is the market value of the bond? Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond? Ruth Hornsby is looking to invest in a three-year bond that makes semiannual coupon payments at a rate of 5.875 percent. If these bonds have a market price of $981.13, what yield to maturity can she expect to earn? Rudy Sandberg wants to invest in four-year bonds that are currently priced at $868.43. These bonds have a coupon rate of 6 percent and make…
- Anna is looking to invest in a bond with a P1,000 par value, 8 percent annual coupon pays interest semiannually and will mature in 15 years. The nominal yield to maturity is 11 percent. What is the value of the bond?Manuel bought a $100,000 bond with a 5.2% coupon for $92,420 when it had five years remaining to maturity. What was the prevailing market rate at the time Manuel purchased the bond?Sophia bought a bond when it was issued by Exxon Mobil Corporation 14 years ago. The bond, which has a $1000 face value and a coupon rate equal to 10 percent, matures In six years. Interest is paid every three months; the next Interest payment is scheduled for three months from today. If the yield on similar-risk investments is 14 percent, what is the current market value (price) of the bond? Interpret your answer.
