Suppose that a 20-year 7% bond selling for $816 and held to maturity has reinvestment rate of 6%. Coupon is paid twice a year. Par value is $1,000. What is the annual total return?

Q: The nominal rate of return is ______% earned by an investor in a bond that was purchased for $963,…

A: Bond It is an obligation security, where borrowers issue securities to fund-raise from financial…

Q: What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that…

A: Yield to maturity(YTM) is the rate of return on bond that is obtained if bond is held till maturity.…

Q: Suppose you purchase a zero coupon bond with face value $1,000, maturing in 25 years, for $180. What…

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

Q: Assume that a company issued a bond with $1,000 face value, 10% coupon rate, 20 years maturity, if…

A: Face Vale = 1000 Coupon = Coupon Rate × Face Value = 10 × 1000 = 100 Total Time Period = 20 years…

Q: A 11​-year bond pays interest of $28.60 ​semiannually, has a face value of $1,000​, and is selling…

A: Semi Annual Interest Time Period = 11 Years × 2 =22 semi annual periods Face Value = 1000 Price of…

Q: Bonds issued by the Etling Corporation have a price of $790.55 and a coupon rate of 8 percent which…

A: Yield to maturity  Years 14 coupon amount (PMT)  (1000*8%) 80 Face value (FV) 1000 Present…

Q: Find the value of a bond maturing in 10 ​years, with a ​$1,000 par value and a coupon interest…

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

Q: Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000.…

A: Yield: This is the earning power or the income generated through an investment. In bond market,…

Q: Assume that a company issued a bond with $1000 face value, 10% coupon rate, 20 years maturity. If…

A: Face value =$1000 Coupon rate =10% Coupon payment =$100 Time =20 years YTM =8% So, present value of…

Q: A 30-year bond with par value $1,000 has annual coupons and sells for 1,300. The write-down in the…

A: Bonds are a part of debt instruments having fixed time to maturity. Bonds carry two types of…

Q: Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon…

A: Bond price is the current worth of the future payments to be made. Future payments include coupon…

Q: A company plans to purchase a zero-coupon bond with a face value of $4,200,000, a time to maturity…

A: Zero coupon bonds are bond that do not pay coupon or interest before the maturity and only pays the…

Q: Kaiser industries has bonds on the market annual payments, with 14 years to maturity, a par value of…

A: Par value = $ 1000 Coupon rate = x Coupon amount (C) = 1000*X= 1000X Price (PV) = $ 1108.60 Yield…

Q: The semi-annual bonds of Delta Company have a coupon rate of 6%, a Yield to Maturity of 8%, a par…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: A 9-year bond pays interest of $26.20 semiannually, has a face value of $1000, and is selling for…

A: B0 = Interest * PVCF @ YTM for 18 periods + Maturity Value * PVF @ YTM for 18th period

Q: Assume the bonds par is $1000. A 13 yr bond is selling at $1,040 and its coupn is paid semi…

A: Face value = 1000 YTM years = 13 YTM rate = 9% Present value = 1040

Q: A bond with a coupon rate of 6.5% (assume it is paid once annually), matures in 10 years at a value…

A: PRESENT VALUE (CURRENT MARKET PRICE) 695 NPER (n) (MATURITY YEARS) 10 PMT (COUPON AMOUNT) 65…

Q: A semi-annual coupon bond has MacD of 26.4 years, yield-to-maturity of 4.4%, and price of $1178.57.…

A: Dollor value=Modified duration*Current price*1 percent change in YTMDollar value=-26.4*1178.57*0.01…

Q: The

A: Given in question  Face value $1,000 Call price $ 1,070 Call year 5 Coupon rate 11% semi annual…

Q: Suppose you’ve purchased a 5-year bond with a face value of $1,000 and a coupon of 10% in the…

A: Bond is a long-term debt instrument used by entities to raise debt from public-at-large. Fixed…

Q: A 10 year bond pays interest of $28.20 semiannually, has a face value if $1000, and is selling for…

A: Bonds are debt security which is generally issued by corporates or governments to arrange funds.…

Q: Calculate the convexity of a $1,000 par value bond, with a coupon rate of 9% that matures in 4 years…

A: given, r=10% n=4 coupon rate =9% par =1000

Q: find the present value of a 2 year bond that pays a semi annual coupon has a coupon rate of 6…

A: Bond is a long-term debt instrument that is used by organizations to raise debt funds from public.…

Q: What is the current value of a $1,000 par value 10-year bond with a 7% coupon rate and its interest…

A: Following details are given in the question regarding a bond: Coupon rate = 7%  Time period = 10…

Q: New Markets has $1,000 face value bonds outstanding that pay interest semiannually, mature in 20…

A: Working note:

Q: A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of  $1,000. What…

A: First we need to calculate price of bonds at given yields  it is calculated using pv function in…

Q: The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually,…

A: In this question we need to compute the Yield to maturity in both part (A) and part (B) given…

Q: Renfro Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8%…

A: BondIt is the instrument of the indebtedness of an issuer of the bond to the holders of the bond

Q: Calculate the yield to maturity of both bonds. All else being equal, explain which bond the issuing…

A:

Q: Wilsons company bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have…

A: Nper = Number of years = 12 PMT = Coupon = 1000*10% = 100 PV = present value = -850 FV = Future…

Q: A bond with a coupon rate of 6.5% (assume it is paid once annually), maturing in 10 years at a value…

A: The current yield is providing the current profitability of the bond value. The value of the bond is…

Q: Company B has a bond outstanding that pays a 8% coupon. The interest is paid semi-annually, and the…

A: Current yield can be calculated by dividing the coupon amount with current selling price of bond.…

Q: A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the…

A: Par value = £100 Coupon rate = 9% Coupon rate = 100*0.09= £9 Yield to maturity = 12% Years to…

Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…

A: Given: Bond value= $1,000 Coupon rate = 10% Maturity period= 6 years Market price = $865

Q: the

A:

Q: Perry Inc. bonds sell at $1,150, they have a mature in 6 years, an annual coupon of $85 and par…

A:

Q: What is the yield to maturity, to the nearest percent, for the following bond: current price is…

A: Bonds are the financial instruments that are issued financial institution to raise funds from…

Q: You purchased a bond for 725. The bond has a coupon rate of 8 percent, which is paid semiannually.…

A: Expected rate of return is Yield to maturity.   Data given: ( Assumed all figures are in $) i) Face…

Q: What is the yield to maturity for the following bond: current price is $908, coupon rate is 11…

A: Here, Present value (PV) = $908 Maturity value (FV) = $1,000 Coupon rate = 11% Time to maturity (n)…

Q: A bond has a $1,000 face value, a market price of 1,036, and pays interest payments of $70 every…

A: Given details are : Face value = $1000 Market price = $1036 Interest payment every year = $70 From…

Q: The nominal rate of return is % earned by an investor in a bond that was purchased for $901, has an…

A: Given information: Purchase price : $901 Selling price : $1031 Face value : $1,000 Annual coupon :…

Q: 1-annually, has 17 years remaining to maturity, and has a coupon rate of 6.00%. If the bond sells…

A: Yield To Maturity: It is the total rate earned for holding the bond till its maturity. This yield to…

Q: suppose a company issues $10,000 face value discount bond maturing in one year What's the price of…

A: Discount Bond is sold at price below par value with no interest payments and difference between…

Q: A 30,000, 6% bond with coupons payable quarterly is redeemable at par at the end of 8 years. The…

A: Face value = 30,000 Coupon rate = 6% Quarterly coupon amount = 30,000*0.06/4 = 450 Years to maturity…

Q: A 15-year bond has a $1,000 par value bond, a 4 percent coupon, and a yield to maturity of 3.3…

A: Calculating the current price of bond. We have,Current price of bond = C [1 – (1 / (1+r)n ] / r +…

Q: A 10 year bond with 5% annual coupon and $1,000 par value sells for $1,200. What is the…

A: Face value = $1000 Duration (n) = 10 years Coupon = 5% of $1000 = $50 Bond price = $1200 Let r =…