The S.Alam Company bond currently sells for $955, has a 12% coupon rate and a $1,000 par value, pays interest annually, And has 15 years to maturity. Calculate the approximate yield to maturity on this bond through trial and error Explain the relationship that exists between the coupon rate and yield to maturity and the par value and market value of a bond.

Q: Showbiz, Inc., has issued eight-year bonds with a coupon of 7.33 percent and semiannual coupon…

A: In this question the first part asks for the present value of the bond which will give the market…

Q: Lahey Industries has outstanding a $10000 par-value bond with an 8% coupon interest rate. The bond…

A: The price of the bond is determined by evaluating the coupon payments till the maturity of the bond.…

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…

Q: Bradford Manufacturing Company has just issued a 13-year, 13% coupon interest rate, $1,000-par bond…

A: The Price of the bond or current selling price of the bond is the sum of the present value of future…

Q: Imagine that you invest in a circulating bond with an annual coupon of 6% and a remaining maturity…

A: Face value of bond = $ 900 Coupon rate = 6% Annual coupon amount = 900*0.06 = $ 54 Years to maturity…

Q: Carrie's Clothes, Inc. has a four-year bond outstanding that pays $50 annually. The face value of…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: four-year bond has an 8% coupon rate and a face value of $1000.  If the current price of the bond is…

A: Because you have posted multiple questions , we will answer the first question only. For the…

Q: Alpha Natural Resources (NYSE: ANR) has issued a bond which has a $1,000 par value and a 15 percent…

A: Using the rate function in excel

Q: A $1,000 bond has a coupon of 7 percent and matures after twelve years. Assume thatt the bond pays…

A: The bond price will be the sum of present value of 7% coupon taken as annuity and $1,000 face value…

Q: The 14 year, $1,000 par value bonds of Waco industries pay 11 percent interest annually, the market…

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

Q: You are pricing a 10-year, 7 percent coupon bond with a $1,000 face value. Coupon payments are made…

A: This question provides that other similar maturity & credit quality bonds have the yield to…

Q: Bigbie Corp issued a five-year bond a year ago with a coupon of 8 percent. The bond pays interest…

A: Bond price is basically the net discounted value of the bond's future cash flow. It denotes the…

Q: llais Company’s bond has an $85 annual interest payment that will mature in 10 years at a value of…

A: The yield of the bond is the required rate of return on the investment made by the bondholders. The…

Q: Doisneau 24-year bonds have an annual coupon interest of 7 percent, make interest payments on a…

A: N = 48 semi annual periods (24 years) Par Value = 1000 Semi Annual Coupons Coupon = Coupon Rate/2 *…

Q: ZBD Inc is issuing a 20-year bond with a par value of $1,000.  The bond will pay its holders a…

A: The following information has been provided in the question: Life of bond = 20 years Par value=$1000…

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: A 20-year bond has a face amount of $1000 and 8% quarterly coupons. The redemption value is $1050…

A: " Since you asked multiple sub-parts questions, we will answer the first three sub-parts for you as…

Q: A 30-year, $1,000 par value bond has an annual payment coupon of 7.5%.  The bond currently sells for…

A: The presentation of the interest expense and coupon payments for a bond is different, the interest…

Q: Blossom, Inc., has issued a three-year bond that pays a coupon rate of 6.0 percent. Coupon payments…

A: Bonds are a kind of debt financial instrument which is a fixed-income investment vehicle that…

Q: Showbiz, Inc., has issued eight-year bonds with a coupon of 6.73 percent and semiannual coupon…

A: given, n=8 coupon rate = 6.73% semi annual coupon r=7.51% par = 1000 m=2

Q: The Salem Company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par…

A: Bond price = $955 Coupon rate = 12% Par value = $1000 Coupon amount = 1000*0.12 = $120 Years to…

Q: A 15-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…

A: Bond Equivalent Annual Yield = (face value - purchase price) / Purchase price *1/no. of years

Q: Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,884.02. The bond has a…

A: Bonds are the securities issued by the company in order to raise money. These are eligible for the…

Q: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Carries Clothes, Inc. has a five -year bond outstanding that pays $60 annually. The face value of…

A: Given that;Face value is $1,000Annual coupon payment is $60Current price or present value of the…

Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10…

A: Hence, the semi -annual interest payment is $44.5.The semi- annual interest payment is calculated by…

Q: Microhard has issued a bond with the following characteristics:   Par: $1,000 Time to maturity:  12…

A: given infomation  Par: $1,000 Time to maturity:  12 years Coupon rate:  9 percent…

Q: Peking Duct Tape Company has outstanding a $1,000-face-value bond with a 14 percent coupon rate and…

A: Using excel PV function

Q: The Salem Company bond currently sells for ​$848.55​, has a coupon interest rate of 14​% and a $1000…

A: Given:

Q: Glacier Industries has bonds on the market making annual payments, with 14 years to maturity, and…

A: A coupon is a periodic amount paid by the bond issuer to the bond holder as a fixed percentage of…

Q: XYZ issued a bond with a par value of P1,000. The bond pays an interest of P35 each quarter, and has…

A: We need to calculate the price of bond which will be sum of the present value of all coupon payment…

Q: The Mobile Motors Inc. bond has 12 years remaining to maturity. Interest is paid annually, it has a…

A: Current price of the bond is the sum of present value of coupon and the present value of face value.

Q: Doisneau20​-year bonds have an annual coupon interest of8 percent, make interest payments on a…

A: The bond valuation refers to determining the bond's current price, Yield To Maturity, Current yield,…

Q: Microhard has issued a bond with the following characteristics:   Par: $1,000 Time to maturity:  21…

A: Par Value =1000 Coupon Rate =9%  Coupon amount = 1000*9%/2 =45 Yeasr =21 Terms = 21*2 = 42 YTM1 =…

Q: Madsen Motors's bonds have 11 years remaining to maturity. Interest is paid annually, they have a…

A: Time Period = 11 years Par Value = 1000 Coupon = Coupon Rate× Par Value = 9% × 1000 = 90 YTM = 11%

Q: If interest rates remain unchanged, what do you expect the price of these bonds to be (a) 1 year…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: On September 1, 2012, an investor purchases a $10,000 par T-bond that matures in 12 years. The…

A: Given information : Price of T-bond = $10,000 Maturity period = 12 years Coupon rate = 6% Yield = 7%…

Q: You are given the following information aboutr a 20 year bond with face amount 4000. The bond has an…

A: A coupon bond is a debt obligation in which the coupons are also attached.

Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years…

A: YTM: Semiannual rate is 5.07476% Annual rate or YTM is 5.07476%*2 = 10.15%

Q: If the price of the bond is $1750, its yield to maturity is 10.5 percent , it matures in 6 years and…

A: Formula for Yield to maturity is: YTM = C + F - P/n              F + P/2 Formula for bond price is:…

Q: A coupon bond which pays interest of $120 annually, has a par value of $1000, matures in 12 years,…

A: In the given question we require to compute the yield to maturity on the bond from following…

Q: Using the approximation formula, calculate the yield to maturity (YTM) b) Calculate the current…

A: YTM is the return that an investor will earn on its bond if held till maturity. It is a long term…

Q: Carrie's Clothes, Inc. has a seven-year bond outstanding that pays $50 annually. The face value of…

A: Ans 1. Bond's coupon rate is defined as the yield of coupon rate through the fixed income security…

Q: Dausin Design offers bonds with a coupon rate of 9 percent per year, paid semiannually. The yield to…

A: Solution:- We know, Current Price of a bond = Present Value of Cash Inflows receivables from bond.…

Q: A 10-year bond with a $1,000 face value has a coupon rate of 8 percentpaid semiannually. If current…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest…

A: Solution Coupon Interest (C) = 1000*15% = 150 n = 10 periods F = 1000 P = 1250

Q: onsider an 8 year, 12 percent coupon bond with a par value of 1,000 on which interest is payable…

A: The price of the bond is the amount the investors are willing to pay for the bond today.