(Yield to maturity) A bond's market price is $1,200. It has a $1,000 par value, will mature in 6 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 12 years? What if it matures in 3 years? a. The bond's yield to maturity if it matures in 6 years is %. (Round to two decimal places.) b. The bond's yield to maturity if it matures in 12 years is %. (Round to two decimal places.) c. The bond's yield to maturity if it matures in 3 years is %. (Round to two decimal places.)

Q: 1. A 12-year bond has a 9 percent annual coupon, a yield to maturity of 8 percent, and a face value…

A: 1) Face value (F) = P 1000 r = YTM = 8% n = 12 years Coupon (C) = 9% of 1000 = P 90

Q: A bond has a coupon payment of $22 every 6-months. It is trading at 98.6, is rated BBB, and has 8…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: What is the value of a bond that matures in 12 years, makes an annual coupon payment of $50, and has…

A: The value of the bond is the current price of the bond. It is the present value of the cash flows…

Q: Consider a coupon bond that pays interest semiannually has a par value of $1000, matures in 9 years,…

A: SEMI ANNUAL PERIOD (9*2)  18 COUPON RATE (7%/2) 3.50% PMT (COUPON AMOUNT) $35.00 YIELD TO…

Q: a coproration bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a…

A: Corporate bond refers to the bond issued by a corporation in order to elevate financing for many…

Q: Bond A has an 8% annual coupon, Bond B has a 10% annual coupon, and 8ond C has a 12% annual coupon.…

A: Given information : Particulars Bond A Bond B  Bond C Coupon rate 8% 10% 12% Time to maturity…

Q: What is the price of a 5​-year, 8.4% coupon​ rate, $1,000 face value bond that pays interest…

A: Using Financial Calculator

Q: A​ bond's market price is ​$775. It has a ​$1,000 par​ value, will mature in 8 ​years, and has a…

A: The bond's YTM can be calculated using the RATE Function in excel.  RATE = (NPER, PMT, -PV, FV,…

Q: There is a freshly issued 10 year inflation-linked bond with a face value of $1,000. Inflation in…

A: In case of Zero coupon bond no coupon shall be paid during the life of the bond. Therefore,…

Q: There is a bond that has a quoted price of 93.105 and a par value of $2,000. The coupon rate is 6.48…

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

Q: A bond that matures in 8 years has a par value of $1,000 and an annual coupon payment of $70; its…

A: As per Bartleby answering guidelines, answered only the first question. Kindly post the other…

Q: current price of

A: Bond price refers to the present discounted value based on some future date of cash generated by…

Q: A 30-year bond with a face value of $1,000 pays $35 every 6 months and has a yield to maturity of 4%…

A: Return rate which an investor can earn from holding the security for a particular time period is…

Q: Suppose there is a bond with a par value of $1,000 that matures in 6 years. Coupon payments are made…

A: Information Provided: Par value = $1000 Maturity =  6 years Coupon rate = 9% Yield to maturity = 12%

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: BOND L       Yield to maturity  17 coupon amount (PMT) = 11%*1000 110 Face value (FV) 1000…

Q: A bond has the following features: Coupon rate of interest (paid annually): 6 percent Principal:…

A: A bond is a loan to a corporation, government agency or other organization to be used for all sorts…

Q: What is the price of the bond at 3 different points in time - today, in 1 year, and in 2 years.  Is…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: For bond L, it is given that;Par value of the bond is $1000Yield to maturity is 9%Time period is 17…

Q: what is the​ bond's current​ price?

A: PV = [ S CFt/(1 + i)t] + [FV / (1 + i)t]

Q: What is the value of a bond that has a 10 percent coupon, pays interest semiannually, and has 10…

A: Coupon Rate (C)= 10% or 0.1 Time Period (n)= 10 Years Yield to Maturity(Y) = 12% or 0.12 No. of…

Q: A bond has nine years to​ maturity, a $2,000 face​ value, and a 5.5​% coupon rate with annual…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: A $1,000 bond has a coupon of 5 percent and matures after twelve years. Assume that the bond pays…

A: The price of the bond is the present value of the bond's cash flows. The current yield is the coupon…

Q: A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: The annual coupon rate on a 12-year bond is 9%. If the bond matures, the coupon rate would be set.…

A: When the bond's yield is less than the coupon rate, the price of bond is more than face value. So,…

Q: A bond currently sells for $1,250. It pays a $110 annual coupon andhas a 20-year maturity, but it…

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: A bond has 5 years to mature. Its face value is 1500 and pays a coupon of 12% coupon is paid on a…

A: Here, Time period of Bond is 5 Years Other Details are as follows:

Q: What is the semi-annual coupon bond’s nominal yield to maturity (YTM), if the years to maturity is…

A: Hi there! Thanks for the question. Post has multiple questions. As per company guidelines expert can…

Q: A bond has a yield to maturity of 7 percent. The bond matures in 10 years, has a face value of…

A: Coupon payments are the interest payments received by bondholders from the date a bond is issued…

Q: A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and…

A: Yield to maturity (YTM) is the effective rate of return or the current yield that is expected to be…

Q: BEST Company bonds are yielding 12% and will mature in 10 years from now. The coupon rate is 14% and…

A: Price of bond = Coupon Amount * PVAF ( Semi annual rate, Number of periods) + Face value * PVIF (…

Q: What is the current yield on the bond?

A: The yield can be calculated in MS – Excel using the Yield function The Semi-annual Yield is -0.50%

Q: Bond P is a premium bond with a coupon of 7.8 percent, a YTM of 6.55 percent, and 15 years to…

A: Bonds are the highly secured debt securities for which the company pays interest to the bondholder.…

Q: A bond with a face value of $1,000 has 16 years until maturity, has a coupon rate of 7.8%, and sells…

A: face value = $1000 n= 16 years coupon rate = 7.8% price =$1071

Q: A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and…

A: FV = $1,000 Coupon Rate = 9% N = 10-1 = 9 YTM = 9% Using Financial Calculator : PV = $1,000.

Q: A bond that matures in 9years has a ​$1,000 par value. The annual coupon interest rate is 14 percent…

A: Using excel PV function

Q: What is the value of a Northern Pacific bond with an 11 percent coupon, maturing in 15 years? Assume…

A: Using excel PV function

Q: Calculate the value of a bond that matures in 15 years and has $1,000 par value the annual interest…

A: Bonds are considered a long-term financial liability. This is one of the methods of raising funds…

Q: (Calculating yield to maturity) A bond's market price is $750. It has a $1000 par value, will mature…

A: Given Par value = $1000 Market price = $750 Annual Coupon Rate = 9.00% Semiannual Coupon Rate = 9%/2…

Q: Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually, they have a…

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

Q: A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985.…

A: A bond is a debt security that generates periodic coupon payments and matured at its par value. The…

Q: What is the duration of a bond

A: Duration of a bond measures the volatility of price of a bond to the percentage change of the…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: