What would be the price of 10 years bond with face value Rs 5000, coupon rate of 10% and required rate of 15%. Calculate the price but show the answer of each year separately?

Q: If you buy a 5.5% coupon bond today that matures in 10 years with a yield of 8.1% that pays…

A: Assuming Par Value = 1000 N = 10 years  Yield = 8.1% Coupon = Coupon Rate / 2 * Par Value = 5.5%/2 *…

Q: Suppose you purchase a zero coupon bond with face value $1,000, maturing in 25 years, for $180. What…

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

Q: Suppose we have a 5-year investment horizon and we consider a 10-year 12% coupon bond with face…

A: Total return on any investment is the sum total of all the return earned through-out the tenure of…

Q: What is the present value.if $5,400 is discounted back 4 years at an interest rate of 3% compounded…

A: Dear student, as per Bartleby answering guidelines we can answer only the first question if the…

Q: To expand its business, the ABC factory would like to issue a bond with par value of P1,000, coupon…

A: The value of the bond is calculated as present value of cash flows.

Q: Calculate the current yield of a bond with $1,000 face value, 7.50% coupon rate, quarterly coupon…

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

Q: Malenia is looking to purchase a 10-year, $10,000 face value zero coupon bond. Assuming the current…

A: Price of zero-coupon bond = Face value / (1 + r) n Wherre, r = interest rate N = Time period   a)…

Q: A bond with a face value of P1,000 matures in 12 years and has a 10% percent annual coupon. it can…

A: Yield to call will be the rate at which the PV of all annual coupon till call and redemption price…

Q: If Simon buys a 10 year 5% annual coupon bond has a face value of $1000 and is sold for 1100 5 years…

A: Using Excel Rate function

Q: What would be the price of 10 years bond with face value Rs 1000, coupon rate of 10% and required…

A: Bond is a fixed income instrument, debt instrument by investor to a borrower.

Q: What's the value to you of a $1,000 face-value bond with an 10% annual coupon rate and 6 years to…

A: Given, face value of bond is $1000 Annual coupon 10% Term to maturity is 6 years.

Q: An investor has a bond with a 10% coupon, 40 years maturity with a par value of $1,000 paying 80…

A: Par Value = 1000 Time Period = 80 semi annual periods Coupon = 50 Interest Rate = 10%/2 = 5% per…

Q: You want to buy a 9 year bond with a maturity value of $3,000, and you wish to get a return of 5.5%…

A: Using excel PV function

Q: Consider an annual coupon bond with a face value of $100, 10 years to maturity,  and a price of $95.…

A: Future value = Monthly amount investment * Future value annuity @ given rate @ given time

Q: suppose that you have purchased a 3- year zero-coupon bond with face value of $1000 and a price…

A: Price of Zero Coupon Bond=$850Face Value of Bond=$1,000Time=3 Years

Q: What price would you pay for a 5-year,

A: solution YTM for BB Bond = (((F-P)/n)+C) / (F+P)/2 Face value = $1000, Price = 859.88, No. of…

Q: You are considering the purchase of a new issue of bonds which will mature in 10 years.  The coupon…

A: Using Excel PV function

Q: What is the formula use to calculate yeild to maturity on a 20 year coupon bond with a current yeild…

A: It can be solved using rate function in excel. Yield to maturity can be calculated by following…

Q: Showing your calculations, calculate the price of a $100,000 debenture bond that matures in 15…

A: The price of an asset is computed as the present value of the future cash flows associated with the…

Q: Suppose you’ve purchased a 5-year bond with a face value of $1,000 and a coupon of 10% in the…

A: Bond is a long-term debt instrument used by entities to raise debt from public-at-large. Fixed…

Q: You buy an 8% coupon, 20-year maturity bond when its YTM is 9%. A year later, the YTM is 10%. What…

A: Given, Coupon bought for 8% 20 years maturity, YTM is 9% Year later maturity 10% after an year

Q: 5. years. At a purchase price of 870, the yield rate is i The coupon rate is i-0.02. Calculate i A…

A: Calculate the annual coupon amount (PMT) by multiplying the face value of the bond which is 1,000…

Q: 5. years. At a purchase price of 870, the yield rate is i, The coupon rate is i-0.02. Calculate i A…

A: The question is related to Bond Valuation. The yeild to maturity is calculated with the help of…

Q: You plan to reinvest the coupon interest at 12% rate of return per annum. Calculate the value of the…

A: Maturity or Redemption value is amount paid by issuer of bond at redemption of bond to bondholder.…

Q: A 20-year zero coupon bond has a $1,000 face value, a required rate of return of 5 percent, and…

A: Using PV function in excel

Q: You are managing a portfolio of £20 million. Your target duration is 6 years, and you can choose…

A: The portfolio is referred to as the basket of different financial assets in which investment is made…

Q: If you want to receive $500 every three months for 10 years by investing in a bond that has a face…

A: The Bond's current price is the present value of its expected future cash flow, which is discounted…

Q: Suppose Harry Davis issues 30-year debt with a par value of $1,000 and a coupon rate of 10%, paid…

A: We need to use approximation method for calculation of cost of debt Cost of debt =I(1-T)…

Q: A 25-year coupon bond pays an annual coupon of 5 and has a face value of 100. If the current price…

A: Annual Interest = 5% FV = Face Value of the Bond = 100 Price = Current Market Price = 100 Maturity =…

Q: What is the cost of new AND existing debt if the current price of the bonds is $1,050? The bonds pay…

A: Cost of debt is the cost of raising capital from the source of debt. A company has to bear this cost…

Q: How much will the coupon payments be of a 25-year $1,000 bond with a 5% coupon rate and quarterly…

A: Given details are : Par value of bond = $1000 Time period = 25 years Coupon rate = 5% Coupon…

Q: You are considering a 10-year, Rs. 1000 par value bond. Its coupon rate is 10% and interest is paid…

A: Bond price is the present value of future cash stream generated by a bond and is discounted at the…

Q: You buy a 15-year 10 percent annual coupon bond at par value, $1,000. You sell the bond two years…

A: In this question, it is required that the Holding Period Return is calculated. Holding period return…

Q: If you purchased a bond one year ago for $1000 and just sold it for $1100 after receiving the $50…

A: Purchase price (P0) = $1000 Selling price (P1) = $1100 Coupon payment (C) = $50 Inflation = i = 2.1%…

Q: To expand its business, Laris Company would like to issue a bond with par value of $1,000, coupon…

A: The value of a bond is the sum of the present value of interest and the present value of maturity…

Q: A bond with a face value of $5,000 pays interest of 8% per year. This bond will be redeemed at par…

A: Information Provided: Face value = $5000 Coupon rate = 8% Term = 20 years Yield = 10%

Q: How much should you pay for a $10,000 bond (face value) with 8% coupon, annual payments, and 3 years…

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

Q: What price would you pay for a 10-year

A: Answer to 1 - YTM for AA Bond = (((F-P)/n)+C) / (F+P)/2 F = 1000, P = 972.22, N=20, C = 8.5% i.e.…

Q: What is the value of a 15-year, $1000 par value, 1.5% coupon bond with annual payment if the…

A: Bond valuation is a way to determine the theoretical fair value (or par value) of a particular bond.…

Q: Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6…

A: Given details are : Par value of bond = $1000 Maturity life = 10 years Interest rate = 6% Coupon = 0…

Q: What is the value of a 10 percent semi-annual coupon bond with a par value of $1,000 that matures in…

A: Given: Coupon rate =10% semi annual Face value =$1000Semiannual coupon payment…

Q: Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $960. If the bond is…

A: HOLDING PERIOD YEILD FORMULA: holding period yield=incom generated+selling price-purchase…

Q: The Ara Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in…

A: Time value tells that the money received today is of more value than that of receiving the exact…

Q: You purchase a 6%, 20-year annual coupon bond for its face value. You will hold this bond for two…

A: Return on the bond at the end of the first year  = 6% + 6% of 6                               6 +…

Q: What is the value of a 10-year, $1,000 par value bond with a 10 percent annual coupon if its…

A: The value of a bond is the present value of the expected cash flows.

Q: How much (in dollars) will you pay?

A: Price of Bond: It is the price at which the bondholder purchases the bond for holding it till…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.