uppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual coupon interest rate, and mas a market interest rate of 6%. hat's the price or the value of this bond? Celect one: O a $9712 O b. $1,069.31 O c 927.66 O d. $1,000

Q: You have purchased a bond for $973.02. The bond has a coupon rate of 6.4%, pays interest annually,…

A: Given: Bond price = $973.02 Coupon rate = 6.4% Years =4 Face value = $1,000

Q: You purchased a 10-year, 5% annual-coupon bond with $1,000 par value. The yield to maturity at the…

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

Q: A 25-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate…

A: Given, Number of years (Nper) = 25 Future value (FV) = $1,000 Coupon rate = 9.6% or 0.096

Q: 1. Aboitiz Equity Ventures issued a 7-year bond with a par value of ₱50,000 that pays a coupon of…

A: Risk free rate (RF) = 1.5% Inflation premium (IP) = 4.5% Default risk premium (DP) = 2% Liquidity…

Q: ou purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par. 1. What is the…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Two bonds, each with a face value of $16000, are redeemable at par in t-years and priced to yield y2…

A: Value of a bond is the price of the bond. It is the present value of future cash flows occurring…

Q: Assume that you purchase a 30-year $1,000 par value bond, with a 10% coupon, and a yield of 9%.…

A: Price of bond after 8 years Total Time period = 30 years Time to maturity = 22 years Yield to…

Q: Laura Hall wants to invest in 4-year bonds that are currently priced at $866.87. These bonds have a…

A: Solution Given Face value $1000 Issue price 866.87 Coupon rate 5.6%…

Q: Find the term (i.e. in years) of a bond with the following info: Purchase Price: 1048.81 Yield Rate:…

A: 13 Years,

Q: What is the Macaulay Duration of a 9.5% annual coupon bond with 3 years to maturity, $1,000 face…

A: Duration is a measure of how sensitive a bond's price is to fluctuations in the market interest…

Q: A bond OMR 100 face value, 10 years to maturity, 4% annual coupon rate, and a annual required rate…

A: Bonds are issued in order to raise funds to finance the operations of the company.

Q: J&J Manufacturing just issued a bond with a OMR1,000 face value and a coupon rate of 8%. If the bond…

A: Present value of all the coupon payments are calculated as below: Here: Face Value “FV” is OMR 1000…

Q: You have just purchased a 15-year, P1,000 par value bond. The coupon rate on this bond is nine…

A: The bond price can be calculated as the present value of bond cash flows.

Q: You buy a 6 year bond with an annual 5% coupon at par value, $1000. If the yield to maturity at the…

A: Solution: Bond value is the present value of the cash inflows receivable from the bond for the…

Q: What is the yield to maturity on a $1,000 par value bond 9 ⅛ percent Intercontinental Hotels Group…

A: YTM is the expected return earned from an investment if holds the bond till maturity. Given: Face…

Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…

A: Purchase Price=Future Value of reinvested coupons+Present Value of remaining coupon and Face Value…

Q: Using Excel spreadsheet calculate YTM on a five-year bond with a 5% coupon payable twice a year…

A: Bond refers to the financial instruments which can be used to raise long-term capital for fixed…

Q: A semiannual corporate bond has a face value of $1,000, a price of $785.24, a coupon rate of 9.5%…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: You purchased a bond with an invoice price of $3540. The bond has a coupone rate of 5.4%, a face…

A: Given,  The invoice price is $3540 Coupon rate is 5.4%

Q: Mr. Gonzalez wishes to sell a bond that has aface value of $1,000. The bond bears an interest rateof…

A:

Q: Whittier Inc. offers you a $1,000 bond with 5 years to maturity, annual payments. Assume that the…

A: Given: Particulars   Par value(FV) 1000 Years (NPER) 5 Rate 8% Coupon rate 10%

Q: Solve each of the following questions using both pricing formulas and Excel.  4. A bond with a face…

A: Value of Bond is calculating the present value of a bond’s expected future coupon payments.

Q: Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest…

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

Q: 50.75 c. P875

A: Answer - Option a -  P793.53 Working Given  Par Value = P 1,000 Coupon Rate = 9% annually or 4.5 %…

Q: Mar’s Corporation bonds with par of $1,000 mature in 15 years and pays 6.5% coupon interest. The…

A: Market price of bond can be defined as that price at which bond can be purchased or sold in the bond…

Q: 2. You are purchasing a 19.5-year, zero-coupon bond. The yield to maturity is 6.51 percent compound…

A: GIVEN, n=19.5 years ytm=6.51% par=$1000 m=2

Q: Consider the bonds issued by Walt Disney in the figure below. How much will the holder of this bond…

A: We have a bond and all the relevant information about the same are available. We need to quantify…

Q: A 15 year bond with annual coupons of  x is purhased at a price p t yeild 6%.The price P is 90% of…

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: A $11,000 bond with a coupon rate of 5.35% is redeemable on July 01, 2031. It is purchased on…

A: Required: Price of the bond. The quantum of premium or discount on the bond.

Q: 2-year coupon bond par = 100, coupon rate = 5% %3D (annual compounding) current market price p0 =…

A: Time Period 2 Par Value 100 Coupon Rate 5% Current Price(P0) 98 Current Price(P1) 99.2

Q: Assume that you purchase a 30-year $1,000 par value bond, with a 10% coupon, and a yield of 9%.…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: A Treasury bond with a face value of $20,000 and a coupon rate of 5% payable semiannually was bought…

A: Given: Face value =$20000PMT =$200002×5%=500NPER =10×2 years=20 yearsRate of interest =8%2=4%

Q: K A corporate bond makes payments of $9.67 every month for ten years with a final payment of…

A: Final payment of bond comprises of face value and periodic coupon payment, i.e., Final payment =…

Q: A bond with annual coupon rate of 5.10% and price of $1,090 just yesterday paid a coupon. A total of…

A: Calculation of Yield to Maturity of the Bond:

Q: What price is paid for a P2000 par value 10-year bond with 8.4% coupons paid semiannually that is…

A: To calculate the bond price we will use the below formula   Bond price =…

Q: Suppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual…

A: Present value of an annuity refers to the current value of annuity payments to be made in the future…

Q: Talton buys a $1000 par value 19-year bond with annual coupons. The redemption value at maturity is…

A: Bonds are interest-paying securities that are issued by a corporation or the government to raise…

Q: sume that you are considering the purchase an AEP 30-year, bond with an annual coupon rate of 8.22%.…

A: Maximum price of the bond will be present value of all the future cash flows associated with the…

Q: A 12% bond of Alpha Company with 15 year to maturity is selling in the market for $955, it has a…

A: Yield to Maturity (YTM) is the internal rate of return required for the present value of future cash…

Q: Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time…

A: Par value (FV) = $1000 Period = 20 Years Quarterly period (n) = 20*4 = 80 YTM = 8% Quarterly YTM (r)…

Q: The $1000 face value bond has a coupon rate of 8% with interest paid semi annually and matures in…

A: Bonds are a type of fixed income asset issued as debt instrument. There are two types of incomes…

Q: Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 125 Face Value: 1.500…

A: Provided a certain rate of return, present value (PV) is the current value of a potential amount of…

Q: You invest in a 55 month $5,163 zero-coupon corporate bond at a simple discount rate of 9.73 per…

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

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: