What would you pay for a $10,000, 5 year, 8% bond if you desired to yield 10%? Need help knowing how to solve!
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Karan
Subject-Accounting
What would you pay for a $10,000, 5 year, 8% bond if you desired to yield 10%? Need help knowing how to solve!
Answer: 9,241.83
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- What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in interest if you wanted to earn a yield of 4%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)How much would you be prepared to pay for a $1,000 bond which comes due in 8 years and pays $100 interest annually assuming your required rate of return is 12% (pick closest answer)? a. $901 b. $1,032 c. $1,007 d. $962Ma1. Please give only typed answer. You are considering buying a municipal bond with a 10-year life, a 1,000 par value, and will pay a coupon of 4% annually. You have an opportunity to buy the bonds at original issue (e.g., full 10-year life). Assuming you require a 8% rate of return, how much should you pay for the bond (i.e., how much is it worth)?
- How would you solve these using a financial calculator? What values would you enter for N, I/YR, PV, PMT, and FV? *assume corporate bonds pay 2x annually and have a FV on $1000 *MACRS table attached a) Calculate the YTM of a 20-year corporate bond with a market price of $1,020, interest rate of 4.5% with 15 years left to maturity. [YTM b) What is the MACRS depreciation for a 5-year property asset purchased for $50,000 in the 2nd year?Marty Corp is issuing a perpetual bond today that will pay $100 per year starting in 3 years. If the cost of capital is 5%, what is the value of this bond today? Choose the closest. a) $2,000 b) $2,124 c) $1,997 d) $1,814E6-7 (Computation of Bond Prices) What would you pay for a $100,000 debenture bond that matures in 15 years and pays $5,000 a year in interest if you wanted to earn a yield of: (a) 4%? (b) 5%? (c) 6%?
- If you wanted to achieve a 7% return on this bond ($10,000 face value, payable in 10 years), with a $325 interest payment (A) every 6 months for 10 years, what would you pay for the bond today (P)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Assuming you want to purchase a 5 year bond that has a face value of $10,000 that pays 12% interest. How much are you willing to pay for this bond assuming the market rate is 14% $9,313 Select $10,000 as your answer $10,000 Select $14,000 as your answer $14,000 Select $13,674 as your answer $13,674Show the complete solution. Thank you so much. 1. Niño Company has 12% bonds outstanding that will mature in 10 years. The bonds are selling for P800 per P1,000 face value. Flotation costs are 2% of the par value. Income taxes are 40%. What is the after-tax cost of bonds, using approximate yield-to-maturity rates based on 50-50 rule?
- A $100,000 State of Massachsetts bond, 3.5% coupon (paid annually), due 5/11/2032 is quoted at a yield of 4%. If you buy it Now and sell it 5 years from now when it's yielding 4.5%, what will be your profit or loss in Dollars (ignore the interest payments)A4) Finance Assume that a 6 percent sated interst, $500,000 bond with semianual interst payments and a remaining life of 10 years could be purchased today, when market interst rates are 4.5 percent. If the marlet interest rates rise to 4.0 percent, the bond price to buy will ____LotsaDough's bonds have a 20-year maturity, 8% coupon (paid annually), $1000 par (face) value, and are priced at $952.68. What is LotsaDough's cost of debt (ignoring taxes)? Group of answer choices 7.0% 7.5% 8.0% 8.5%