Which of the following best shows the timeline for cash flows from a five-year bond with a face value of $1,000, a coupon rate of 5.9%, and semiannual payments? ..... O A. Period 1 2 4 $59 $59 $59 59 $1,059 О В. Рeriod 1 3 9. 10 $59 $59 $59 $59 $1,059 O C. Period 1 2 3 10 $29.5 $29.5 $29.5 $29.5 $29.5 O D. Period 1 9. 10 $29.5 $29.5 $29.5 $29.5 $1,029.5
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- What is the Macaulay duration of a 7 percent semiannual coupon bond with two years to maturity and a current price of $1,055.30? (Note: You are required to solve the problem by calculating "Years \times PV / Bond Price" for each cash flow and summing the results. YTM and PV must be calculated using a financial calculator. Round your answer to four decimal places.)Han Corporation issues a bond which has a coupon rate of 7.2%, a yield to maturity of 9.3%, a face value of $1,000, and a market price of $990. What is the semiannual interest payment? Round to two decimal placesSuppose a ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,034.23.
- Answer the following: B1- What is the cash flow of a 6% coupon bond that pays interest annually, matures in 9 years, and was originally priced at par value.of $1,000? b. Assuming a current market yield of 5%, what is the price of this bond? B2-Assuming a current market yield of 8.5%, what is the price of the bond? B3-Assuming a market yield of 1.5%, what is the price of the bond?You have a 7 - year bond, with $1,000 face value, 5.50% coupon rate, semiannual coupon payments, and yield to maturity of 6.50%. What is its price? - $94.45-S1, 138.87-5674.37 - $944.47Compute the current yield on a bond with a yield to maturity of 3.9%, a par value of $1000, a coupon rate of 6.7% paid semi - annually, a remaining life of 11 years? (Round to 100th of a percent and enter as a percentage, e. g. 12.34% as 12.34 and state as an annual rate.)
- Doha plc has some surplus funds that it wishes to invest in bonds. The company requires a return of 15% on bonds, and the finance director has asked you to analyse whether it should invest in either of the following bonds that are available:Company A: Expected profit 12% bonds, redeemable at par at the end of two more years, with a current market value of QAR 95 per QAR 100 bondCompany B: Expected profit 8% bonds, redeemable at QAR110 at the end of two more years, with a current market value of QAR 95 per QAR 100 bonda. Calculate the expected value (price) of the two bonds and evaluate if either offer an appropriate return for Doha Plc.b. Critically evaluate what would be the impact on the price of bonds if Doha Plc reduces their required return.c. Critically evaluate and discuss the factors that should be considered by the directors of a company when choosing whether to use debt or equity finance for a new projectd. Recently one director has attended a finance conference, on their…A bond certificate with a value of P 1,081,038.07 has a par value of P 1,000,000.00 and a redemption price of P 1,030,000.00 at the end of 10 years . If the bond rate is 9% . Calculate the yield that the investor obtained from his investment .A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed at par at the end of this period. It is sold at P1,030. Determine the yield at this price. With Cash flow diagram