The 14 year, $1,000 par value bonds of Waco industries pay 11 percent interest annually, the market price of bond is $1,105, and the market’s required yield to maturity on a comparable-risk bond is 8 percent. A. Compute the bond’s yield to maturity B. Determine the value of the bond to you given the market’s required yield to maturity on a comparable-risk bond C. Should you purchase the bond?

Q: Fingen's 11​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the…

A: Time Duration = 11 years Par Value = $1,000 Coupon Rate = 11% Market price = $1,110 The required…

Q: Stanley, Inc. issues 20​-year ​$1,000 bonds that pay ​$80 annually. The market price for the bonds…

A: Given information: Face value : $1000 Coupon payment : $80 Time period : 20 years Yield to maturity…

Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 9…

A: m = Maturity value or face value i.e. $5,000 p = Semiannual maturity period i.e. 18 (9 years * 2) r…

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A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

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

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: 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: The 15 year, $1,000 par value bonds of Waco industries pay 9 percent interest annually. The market…

A: Given, Number of years (nper) = 15 Future value (fv) = $1000 Coupon rate =9% Coupon payment (pmt) =…

Q: A bond of Telink Corporation pays ​$120 in annual​ interest, with a ​$1,000 par value. The bonds…

A: Here, Annual coupon payment = $120 Par Value = $1,000 Time period = 15 years Yield to maturity = 8%…

Q: BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid quarterly…

A: Fair value of bond = present value of future cashflows of bond, which is given by,  Fair value =…

Q: A 14-year, $1000 par value Fingen bond pays 9 percent interest annually. The market price of the…

A: N = 14, FV = 1000, PMT = 90, PV = -1100 use rate function in Excel a. yield to maturity = 7.80% N =…

Q: The 12​-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The​ market's required yield to…

A: Par value of bond (F) = $ 1000 Coupon rate = 13% Coupon amount (C) = 1000*0.13 = $ 130 Number of…

Q: A firm has an issue of $1,000 par value bonds with a 12 percent stated interest rate outstanding.…

A: Face Value of bond =$1000 Coupon Rate or Interest Rate =12 % Coupon Amount =$1000*12% =$ 120…

Q: The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years…

A: Yield to maturity Yield to maturity refers to the total rate of return anticipated on a bond if held…

Q: bonds which all have a yield to maturity of 15% and matures in 10 years: · ABC – 12% annual quoted…

A: Price of bond =Present value of coupon payment +Present value of par value of bond.

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A: The amount that is received by the bond holder above the par value of the bond when the bond is…

Q: A bondholder owns 15-year goverment bonds with a $5 million face value and a 6 percent coupon that…

A: Correct answer is option (c) -27,571.

Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at…

A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence,…

Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 10…

A: Information Provided: Yield to maturity = 9% Coupon rate = 9% Term = 20 Face value = 5000

Q: Park Corporation is planning to issue bonds with a face value of $620,000 and a coupon rate of 7.5…

A: Issue price = present value of coupon payments + present value of face value of bond   Coupon amount…

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: Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10 percent annual interest.…

A: Using excel PV function

Q: Fingen's 16​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of the…

A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…

Q: The 12​-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The​ market's required yield to…

A: Par value of bond = $ 1000 Coupon rate = 13% Annual coupon amount  = 1000*0.13 = $ 130 Years to…

Q: The 14​-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market…

A: Bonds are units of corporate securities that are securitized as tradeable assets and issued by…

Q: ony's Pizzeria plans to issue bonds with a par value of $1,000 and 10 years to maturity. These bonds…

A: YTM refers to the yield to maturity of a bond.

Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15…

A: Par value (FV) = $5000 Years to maturity = 15 Years Coupon rate = 8.4% Semi annual coupon amount (C)…

Q: ABC Corporation issued a bond that pays coupons semiannually. It has a 15-year maturity, and the…

A: Price of bond = Present value of bond + Present value of maturity  value Price of bond = [ Interest…

Q: A 9 percent annual premium is paid on a 10-year corporate bond. At the time of writing, the bond is…

A: Given, Interest rate = 9% per annum Price = $ 1000 = Face value   YTM when bond is sold at par =…

Q: 1,000 par value bonds pay14 percent interest annually. The market price of the bonds is $950 and the…

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

Q: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 12.1…

A: Solution of a. Face Value = $1000 Coupon Rate = 12.1% payment semi annually Coupon Amount…

Q: The 7-year $1000 par bonds of Vail Inc. pay 11 percent interest. The market's required…

A: A bond is a kind of debt financial instrument that is being issued by corporations and the…

Q: The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to…

A: Hi there, Thanks for posting the questions. As per our Q&A guidelines, the solution for first…

Q: Preston Corporation has a bond outstand with $110 annual interest payment , market price of $1,200,…

A: Yield to maturity (YTM) is the rate which an investor earns when the bond is held till its maturity.

Q: An 8-year bond for Rusk Corporation has a market price of $700 and a par value of $1,000. If the…

A: In this question we need to calculate the yield to maturity of bond. We can calculate yield to…

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: Dakota Corporation 15-year bonds have an equilibrium rate of return of 8 percent. For all…

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Q: Two 25-year maturity mortgage-backed bonds are issued. The first bond has a par value of $10,000 and…

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Q: value bonds pay14 percent interest annually. The market price of the bonds is $950 and the market's…

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: BSW Corporation has a bond issue outstanding with an annual coupon rate of 7. percent paid quarterly…

A: Present value of a bond is today's value that is the current price, However Par value of the bond is…

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: botanica incorporation has bonds with 14 years to maturity, a face value of $1000, a YTM of 8.2…

A: Given: Number of years to maturity = 14 Face value = $1,000 YTM = 8.2% Present value of bond =…

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…

Q: An issue of bonds with par of $1000 matures in 12 years and pays interest at 7% annually. The…

A: Required: The bond's expected rate of return. Should the investor purchase the bond?

Q: he bonds issued by United Corp. bear a coupon of 5 percent, payable semiannually. The bond matures…

A: We need to use RATE function in excel to calculate yield to maturity(YTM).The formula is…