What would you pay for a $175,000 debenture bond that matures in 15 years and pays $8,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables

Q: A. What is the value of a 5%, $1,000 face value bond that matures is 11 years if investors require a…

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve…

Q: The amount of the prospective investor pay for a bond if he desires an 13% return on his investment…

A: Redemption amount (R) = P 40000 Annual interest (A) = P 1200 n = 20 years r = 13%

Q: You are considering purchasing a bond. The bond will pay you $100 at the end of each year for 20…

A: Time value of money: Time value of money is a vital concept to the investors, as it suggests them…

Q: Suppose you purchased a $20,000 face value strip bond on a date when it had 11 years left until…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: calculate the present value

A: Present value (PV) is nothing but the present value of all future cash inflows from a bond. And we…

Q: What would you pay for a $65,000 debenture bond that matures in 10 years and pays $9,100 a year…

A: YTM=16% Interest=9100 Face value=65000 n=10

Q: You investing at a fixed 8.5% for the next 30 years. How much would you have to save each month for…

A:

Q: You purchased a P5,000 bond for P5,100. The bond pays P200 per year. It is redeemable for P5,050…

A: Purchase price = P 5100 Annual interest (A) = P 200 n = 10 years Redemption value (R) = P 5050 Let r…

Q: (Computation of Bond Prices) What would you pay for a $100,000 debenture bond that matures in 15…

A: A bond is issued by the company to raise capital at a fixed interest rate on loan term agreement…

Q: A $30,000 bond has annual coupons and is redeemable at the end of fourteen years for $22,700. It has…

A: Given Information : G = 30,000, F = 18,220, j= 2%

Q: What would you pay for a $110,000 debenture bond that matures in 15 years and pays $5,500 a year in…

A: Given Information Amount of Debenture Bond = $110,000 Maturity = 15 years  Interest earned per year…

Q: Calculate the duration (Macaulay) of a 2-year bond that pays 6% coupon annually, has a YTM of 13%…

A: Face value of bond = $ 1,000 Annual coupon rate = 6% Coupon amount = Face value*Coupon rate…

Q: A man wants to make 14% nominal interest compounded semiannually on a bond investment. how much…

A: Bonds are the debt securities which are issued by the corporations or the government to arrange the…

Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Your yield for maturity on the Abner Bond is %

A: Bond Yield: It refers to the minimum return acceptable to the bondholers for investing in the…

Q: A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently…

A: Calculation of market value of bonds: Excel spreadsheet:

Q: Mathias purchases a 10-year CD for $9000 with 1.9% APR compounded monthly, and a 10-year bond for…

A: Using excel FV function

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: If a $ 3.000, 12% semiannual bond is purchased for $3,100 and sold 5 years later for $2.900. What…

A: Purchase price (P0) = $3100 Selling price (P1) = $2900 n = 5 years = 20 quarters Total coupons…

Q: Shannon purchases a bound for $952.00. The bond matures in 3 years, and Shannon will redeem it at…

A: In the given problem we require to calculate the coupon rate on bond using following details:…

Q: You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are 11.25%,…

A: Yield to maturity  Years 10 coupon amount (PMT)  95 Face value (FV) 1000 Yield rate  11.25%…

Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Ms. Jones want to make 12% nominal interest compunded quarterly on a bond investment. She has an…

A: Bond price is present discounted value of future cash stream generated by bond. It is the sum total…

Q: Suppose that an investment institution offers you two kinds of bonds and you are willing to take one…

A: Present worth of a bond means the present value of all the future payments which are going to be…

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: Suppose Roberto is considering a 12-year bond with a face value of $2,000 and a rate of 8% payable…

A: Face value = $ 2,000 Coupon rate = 8% Semi annual coupon amount = 2000*0.08/2 = $ 80 Years to…

Q: What would you pay for a $65,000 debenture bond that matures in 10 years and pays $9,100 a year in…

A: Bond Price: It is the price paid by the bondholder for investing in the bond. Bond price is…

Q: uppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for…

A: The total amount that a bond pays over its lifetime includes: = Maturity Amount + Coupon Payments

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 man wants to make 16% nominal interest compounded semiannually on a bond investment. How much (in…

A: The amount to be paid now will be the present value of the future coupon and principal payments.

Q: Assume a $1000 bond issue at the rate of 10% for 15 years. a)What is the interest payment for this…

A: Bond carry annual payment which are paid during the life of bonds.

Q: You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You…

A: Rate of return is the percentage of profit earned from an investment. Given: Face value of bond is…

Q: What would you pay for a $100,000 debenture bond that matures in 15 years and pays $10,000 a year in…

A: Given details are: Par value of bond (FV) = $100000 Maturity period (n) = 15 years Annual Interest…

Q: 3. A man is considering to buy a 20-year corporate bond. The bond has a face value of $1,000 and…

A: Given that the face value is $1,000Coupon rate is 6%Time period is 20 years

Q: A bond promises to pay you $7,000.00 in 10 years. If you are able to earn 6 percent on securities of…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: A man wants to make 14% nominal interest compounded quarterly on a bond investment. How much should…

A: Face value = Php 10000 The bond pays quarterly interest. Hence, Coupon = (12% of 10000) / 4 = Php…

Q: Mathias purchases a 10-year CD for $10000 with 2.8% APR compounded monthly, and a 10-year bond for…

A: Investment in 10- year CD  = $10000 Annual Rate = 2.8% per annum compounded monthly Interest rate…

Q: Suppose that someone owns a 30 year $14,000 T-bond with a rate of 6%. After five years the bond is…

A: a) Hence, the first 5 years the bond has paid $4200.

Q: You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are at 9.5%,…

A: Yield to maturity  Years 10 coupon amount (PMT)  95 Face value (FV) 1000 Yield rate  9.50%

Q: • What is the value of a 6%, 10-year bond with a redemption value of $20,000 that pays dividends…

A: The value for the bonds would be considered on the basis of interest rate that is being compounded…

Q: What would you pay for a $100,000 debenture bond that matures in 15 years and pays $5,000 a year in…

A: A bond is issued by the company to raise capital at a fixed interest rate on loan term agreement…

Q: What would you pay for a $65,000 debenture bond that matures in 10 years and pays $9,100 a year in…

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

Q: you intended to purchase a 10 year, $1,000 face value bond pays interestof $60 every 6 months if…

A: Computation of bond price Table values are based on: n= 20     i= 5.00%     Cash flow Table…

Q: You are considering purchasing a 15-year bond for $2400. If the coupon rate is 5.6% APR paid…

A: Total interest during the life of bonds = Principal value * Interest rate * Years