Q4 (a): An investment plan in perpetual bond is offering an expected return of Rs. 7500 at the end of every 3 months period. If Sheraz requires a nominal rate of return of 12% per year compounded quarterly, what minimum amount he will pay for that investment?
Q: The amount of the prospective investor pay for a bond if he desires an 13% return on his investment…
A: Redemption amount (R) = P 40000 Annual interest (A) = P 1200 n = 20 years r = 13%
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A: Hai there! Thank you for the question. As per company guidelines expert can answer only one question…
Q: Consider a fixed-payment security that pays P100 at the end of every year fo the three years. If the…
A: Present value of bond can be calculated by using this equation Present value =C1/(1+r) +C2/(1+r)2…
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A: Payout in 10 months = $ 815 Interest rate = 2.2% Period = 10 months
Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…
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Q: Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the market interest…
A: Information Provided: Face value = 3000 Coupon rate = 12% Bond maturity = 4 years Interest rate =…
Q: a) Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the market…
A: note- Two different questions are asked. According to bartleby guidelines and policy ,if multiple…
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A: Permanent Callable Bonds are Bonds that can be purchased by the seller at any time after selling the…
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A: N = 6 Face Value = 100 Semi Annual Interest = 2.5
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A: A bond is a financial instrument that a corporation issues in the financial markets for the purpose…
Q: a) Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the market…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: A man wants to make 14% nominal interest compounded semi - annually on a bond investment. How much…
A: Here we asked to find the bond price given a specific yield (14%). We can do this by using the time…
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Q: A man wants to make 14% nominal interest compounded quarterly on a bond investment. How much should…
A: Face value = Php 10000 The bond pays quarterly interest. Hence, Coupon = (12% of 10000) / 4 = Php…
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A: Semi Annual Compounding Face Value = 20,000 Time Period (N) = 25 years i.e. 50 semi annual periods…
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- Q: An investment plan in perpetual bond is offering an expected return of Rs. 7500 at the end of every 3 months period. If Sheraz requires a nominal rate of return of 12% per year compounded quarterly, what minimum amount he will pay for that investment?Which of the following statements is true? You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? Select one:Required Full Ans Q: An investment plan in perpetual bond is offering an expected return of Rs. 7500 at the end of every 3 months period. If Sheraz requires a nominal rate of return of 12% per year compounded quarterly, what minimum amount he will pay for that investment?
- You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? a. $ 957.50 b. $826.31 c. $1,086.15 d. $1,032.20 e. $1,124.62A bond promises to pay the bondholder equal payments of php 6000.00 in six month interval for 30 years. if the face amount is php 450000. What is the fair price of the bond ? Assume that market rate is 2% compounded annually?Suppose in the question above, the tuition obligations have a Macaulay duration of 4.35 in years, and that you wish to immunize the tuition payments by buying a single issue of a zero coupon bond. What maturity zero coupon bond should you buy? Assume annual compounding. Round your answer to 2 decimal places.
- b. John needs to pay $55,000, $60,000 and $65,000 at the end of next 3 years respectively. The market interest rate is 4% per annum. i. What will be the duration of John’s payment obligation? ii. Suppose John plans to fully fund the obligation using both 6-month zero coupon bonds and perpetuities. Determine how much (in market value) of each of these bonds John will hold in the portfolio.You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like to earn at least a 2.2% annual rate of simple interest on your investment, what is the largest amount the you should pay for the bond? Round your answer to the nearest cent.A bond with a face value of $5,000 pays interest of 8% per year. This bond will be redeemed at par value at the end of its 20-year life, and the first interest payment is due one year from now. Solve, (a) How much should be paid now for this bond in order to receive a yield of 10% per year on the investment? (b) If this bond is purchased now for $4,600, what annual yield would the buyer receive?
- 1.If you buy a 5-week T-bill with a face value of Tk.1,500 for $990, what is the bond equivalent yield, assuming it is not a leap year?You will receive a $60 interest every six months from your investment in a corporate bond. The bond will mature five years from now and it has a face value of $2,000. l11is means that if you hold the bond until its maturity, you will continue to receive $150 interest semiannually and $2,000 face value at the end of five years.(a) What is the present value of the bond in the absence of inflation if the market interest rate is 9% '?(b) What would happen 10 the value of the bond if the inflation rate over the next five years is expected to be 4%?. Assume an organization could issue a zero-coupon bond at an annual interest rate of 4 percent with semiannual compounding for 20 years. If it receives $2,264.45 for the bond, how much would it have to pay at the maturity date? How do you solve for the semi annual payment