What is the present value, or worth, of this bond if investors are willing to accept a 10 percent annual rate of return on bonds of similar quality bond?

Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…

A: Face Value  $       10,000.00 Coupon rate 8% Time Period 30 Yield 12% Time Passed 10

Q: On January 1, 2020, Company H issues a $20,000,000 bond with a 9% coupon rate. The bond has a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Bonds purchased for $9,000 have a face value of $10,000 and interest is 10% per year, payable…

A: As we all are aware of that,  The rate of return is the difference between the final value,…

Q: The Emory Corporation issued an 8%, 25-year bond 15 years ago. At the time of issue it sold for its…

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

Q: nds pay $70 in annual interest, with a $1,000 par value. The bonds mature in 17 years.  Your…

A: The value of the bond can be calculated as follows : Results obtained :

Q: gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of…

A: Face value =10000 Market price =8900 Coupon =5% MATURITY =9 years  Could =500 Annual

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: An investor purchases a bond 6 months after the issue. The bond will be redeemed at 105% eight years…

A: Price of a bond = present value of its future cashflows, let the purchase price be = P  Hence, P =…

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: A 7 year bond costs $30,000 and will pay a total of $3,600 in interest over its lifetime. What is…

A: Simple interest (I) = P * R * T where P = Principle / Base amount R = rate of interest T = Time   R…

Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

Q: Ten bonds are purchased for $8.856.11 and are kept for 5 years. The bond coupon rate is 9% per year,…

A:

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Given information: Par value of bond is $10,000 Purchase price is $9,500 Bond rate is 6.6% per year…

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

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

Q: Four years after the issue of a $10,000, 8.9% coupon, 20-year bond, the rate of return required in…

A: Par Value is $10,000 Coupon rate is 8.9% Time period is 20-years Required return is 7.2% Compounded…

Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…

A: Given,  The face value of the bond is $10,000 Interest rate 8% Yield is 12%

Q: Navistar Electric issued 1000 debenture bonds 5 years ago with a face value of $5,000 each and a…

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

Q: The Garraty Company has two bond issues outstanding. Both bonds pay$100 annual interest plus $1,000…

A: A coupon bond is a financial instrument that entails receipt of periodic payments, that is coupon…

Q: A company issues a $100,000 bond due in 4 years paying 7 percent interest annually at year- end.…

A: We require to calculate the present value of bond in this question. We can calculate the present…

Q: One hundred $1,000 bonds having bond rates of 8% per year payable annually are available for…

A: Bond valuation is done through the concepts of present value. The value of the bond is the present…

Q: A 20-year bond with a face value of P 5,000 is offered for sale at P 3,800. The nominal rate of…

A: Bonds are one of the most traded financial asset in the financial market. It is demanded by the…

Q: Ten bonds are purchased for $ 9,340.69 and are kept for 5 years. The bond coupon rate is 6% per…

A: Given 10 bonds are purchased for 9340.69 and the face value of bonds should to be calculated. Let…

Q: ABC Corporation’s recently issued bonds paying interest semiannually and maturing in 10 years. The…

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

Q: Compute the specified quantity.A 4-year bond costs $20,000 and will pay a total of $2,800 in…

A: The total amount of interest is $2,800.The cost of bond is $20,000.Number of years is 4.The annual…

Q: The Saleemi​ Corporation's ​$1,000bonds pay 5 percent interest annually and have 13 years until…

A: A. Yield to maturity = [Interest +(Maturity value - Purchase Price)/number of years of…

Q: What is its annual interest rate r (as a percent)?

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a…

Q: A bank issues a 5-year bond that pays 3-month Euribor plus 50 basis points on a quarterly basis. The…

A: Bonds are the debt instruments issued for short term period or for long term. The price of bond is…

Q: 1. On December 31, 2019, Speedo’s Limited bought a yacht for $55,000, but made a down payment of…

A: Given: 31 December 2019, Speedo’s limited bought yacht for $55000 Down payment $10000 Balance…

Q: A.When market rate of interest was 12%, Joshkin Corporation issued $1,000,000 11%, 10-year bonds…

A: Year Present Value Factor @ 12% 1 0.8929 2 0.7972 3 0.7118 4 0.6355 5 0.5674 6 0.5066…

Q: What is the present worth of a $25,000 bond that was purchased for $23,750 and has an interest of…

A: Preset worth is the present value of inflows less present value of outflow. For a bond, present…

Q: A$1,000 face value corporate bond is purchased at the market price of $850 on January 1, 2021. It…

A: To Find: Future Value of reinvested coupons Average annual compound return Average annual compound…

Q: A company has issued 10-year bonds, with a face value of $1,000,000 in 1,000 dollar units. Interest…

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

Q: An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and…

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

Q: Company I issues a $40,000,000 bond on January 1, 2020 with a coupon rate of 7%.  The present value…

A: Req (a) The proceeds received from bonds is less than face value. Therefore bond issued at a…

Q: Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

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 ​$1,000 bonds pay 5 percent interest annually and have 13 years until…

A: Bonds are long-term financing debt. It is a company that raises funds for its business. In return, a…

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

A: Bond is debt instrument which is used by organization to raise long term debt from public.…

Q: A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of…

A: Year of Bond =20 Annual payment =$70 Face Value =$1000

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: Sun company has outstanding a 10 percent bond issue with a face of $1,000 per bond and three years…

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

Q: On January 1, 2020 HH Company wanted to purchase a 2,000 10-year bonds with a denomination of P1,000…

A: Bond Price Bond price is present value of the probable future cash flows. Future cash flow consists…

Q: Fitzgerald's 15​-year bonds pay 6 percent interest annually on a ​$1,000 par value. If the bonds…

A: Here, To Find: Yield to maturity of bonds annually and semi-annually and the difference between the…

Q: A corporate bond has a face value of $10,000, a bond interest rate of 8% per year payable…

A: A bond is a fixed income instrument that represents a loan made by an investor to a borrower…

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…