What is the present value of a 200,000 (face value) bond issued at coupon rate 10%, due in 3 years, interest payable semi-annually? Assume the effective market interest rate is 12%. A. 200,000 B. 140,992 C. 190,165 D. 49,173

Q: en ​$7,000 bonds redeemable at par bearing 10% coupons payable quarterly are sold seven…

A: Bonds are the financial instruments that are bought or sold to raise funds at fixed interest for…

Q: A company issues a ten-year bond at par with a coupon rate of 6.8% paid semi-annually. The YTM at…

A: Par value = $ 1000 Coupon rate = 6.8% Semi annual coupon amount = 1000*0.068/2 = $ 34 Years to…

Q: What is the coupon rate of the bond if coupons are paid semiannually?

A: Coupon Rate: It refers to the annual income expected by the bondholder for investing in the…

Q: A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one…

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

Q: A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.1% paid…

A: Computation:

Q: 1. An 8% corporate bond with face value of P 100, o00 matures in 5 years. The yield to maturity is…

A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

Q: A $2400, 8.9% bond with semi-annual coupons redeemable at par in 8 years was purchased at 95.6.…

A: Because it is assumed that the book value trends in a straight line from the start value to the end…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Bonds are the long-term debt instruments of any business which carry a fixed rate of return, and…

Q: A $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of $22.50…

A: In the given question we need to calculate the coupon rate on bond using following details: Face…

Q: b) Trinity Finance Corporation issued a 25-year bond, two years ago at a coupon rate of 9 percent.…

A: Given information: Face Value : 100 Time to maturity : 23 years Coupon rate : 9% Current price : 95

Q: A $7,000 bond that carries a 4.00% coupon rate payable semi-annually is purchased 8 years before…

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

Q: A company issues a 5-year, 4% coupon bond with a face value of $100,000. The effective market…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Price of bond is equal to present value of cash flows

Q: A ten-year bond that was issued two years ago (8 years left to maturity) has $1.000 face value with…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: What is the coupon payment of a 15 -year $10,000 bond with a 9 % coupon rate with semiannual…

A: Given details are : Face value of bonds =$10000 Time period = 15 years  Coupon rate = 9% Coupon…

Q: A 10-year Circular File bond pays interest of $65 annually and sells for $990. What are its coupon…

A: coupon rate = coupon / face value Therefore, coupon rate = $65 /$1000 coupon rate = 6.50%

Q: A very stable and solvent company issued P10, 000.00, 8% debenture bonds for P10,700.00. If the bond…

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

Q: 1. A $1,000, 12% semiannual bond is purchased at an arbitrary year, held 3 years (six interest…

A: Face value         1,000 Interest 12% Interest payment Half-yearly Required yield 14%…

Q: 1. What would be the selling price of a 10-year bond with a face value of P100,000,interest at 20%…

A: Bond Valuation: It refers to the process of computing the fair or theoretical bond price. It helps…

Q: A 15,000, 5 ½% bonds with quarterly coupons is priced to yield 4 ½% converted quarterly. If it is…

A: The question is based on the concept of Bond valuation and pricing. The price of a bond is…

Q: A 5-year, 15% coupon bond is trading for $1,050. The current market interest rate is 18%. What is…

A: Using the duration format in excel

Q: A 10,000 bond wit interest at 6% payable quarterly is bought to yield 4 ½% converted quarterly. On a…

A: Face value of bonds  10,000.00 Carrying value of bonds  11,000.00 Cash interest Payable (10,000…

Q: How much will the coupon payments be of a 10-year $1,000 bond with a 7% coupon rate and quarterly…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: (Please use Excel) Company A's bonds pay interest annually at $80, with a par/par value of $1,000.…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: A15-year treasury bond is issued with face value of $1,000, paying interest of $58 per year. If…

A: Bond's Coupon Rate = Annual Coupon / Face Value

Q: A $200,000, 6.50% bond redeemable at par, with semi-annual coupon payments, is purchased 12 years…

A: Bond Purchase Price: The present discounted value of a future cash stream provided by a bond is…

Q: A company releases a five-year bond with a face value of $1,000 and coupons paid semiannually. If…

A: F G 10 Rate per month (8%/2) 4.00% 11 Period (NPER) (2*5) 10 12 Face value             1,000…

Q: A company releases a​ five-year bond with a face value of​ $1000 and coupons paid semiannually. If…

A: Rule:If annual coupon rate is:Higher than the YTM, the bond will be issued and traded at…

Q: Carla Vista Corp is issuing a 10-year bond with a coupon rate of 10 percent. The interest rate for…

A: Since face value is missing in the question, Let us assume that Face value of bond is $1000   Value…

Q: Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.…

A: Solution Given Annual interest 98 Market value 870 Years to maturity 5 Par…

Q: Suppose a 19-year, 11% coupon bond selling for $1,233.64 is first callable in 6 years at $1,055.…

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

Q: A newly issued 20-year maturity, zero-coupon bond is issued with a yield to maturity of 3.5% and…

A: 7a. using financial calculator, FV = 1000, N = 20, I/Y = 3.5 Compute PV = $502.56 Again, FV = 1000,…

Q: Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and…

A: Bond valuation is a way to determine the price of the bond. It calculates the present value of a…

Q: What is the annual coupaon rate rounded to 2 decimal places id ABC Inc. recently issued a 20-year…

A: Coupon = ? Time Period = 20 years × 2= 40 Semi Annual Periods Interest Rate = 9%÷2 = 4.5% per…

Q: A $400,000, 8.50% bond redeemable at par, with semi-annual coupon payments, is purchased 10 years…

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

Q: A $6,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 4 years before…

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

Q: A company issued zero coupon bonds of maturity of 10 years. The required rate of return is 8%.…

A: Zero-Coupon Bond or Deep-Discount discount Bond are debt securities that are issued at price lower…

Q: What is the last payment amount of a bond with 1 payment per years, Coupon Rate 8.50% and principal…

A: Bonds are basically loans taken by the bond issuer, where coupons are interest payments and the…

Q: McDonald's Corporation has 8 7/8% bonds that mature in 15 years. What is the value of a $1000 par…

A: Bond price will be equal to par value when coupon price is equal to yield

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: Formula to calculate yield to maturity:YTM=C+FV-PVnFV+PV2×100r= rate of returnC= Coupon paymentn=…

Q: The $1.000 face value 7% coupon bond pays interest semi-annually. The bond will mature in 5-years.…

A: Modified duration determines the measurable change in the value of bond's price with respect to the…

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: