You are purchasing a 20-year bond that matures in 6 years. The bond has a par value of $5,000, coupon rate of 3%, and is selling on the secondary market for $4,800. a.  What is the Yield to Maturity of this bond now? b.  What has happened to interest rates since this bond was issued 15 years ago? Explain.

Q: You just purchases a bond that matures in five years. The bond has a face value of $1,000 and has a…

A: Hi, thank you, but the question asked is incorrect. However, I have done the calculation for both…

Q: A bond with 5 years to maturity and a coupon rate of 6% has a par or face value of $20,000. Interest…

A: Cash Flow at the time of maturity = $20000 Interest (Annuity) annually = ($20000 * 6%) =…

Q: At the beginning of the year, you bought a $1,000 par value corporate bond with a 6 percent annual…

A: par = $1000 coupon rate = 6% n= 10 year r=8%

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: Bond Valuation refers to a technique of determining the par value or the fair value of the bond.…

Q: ted yield to maturity is 5.2% (a six-month discount rate of 5.2/2 = 2.6%).   What is the present…

A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…

Q: Assume that a company issued a bond with $1,000 face value, 10% coupon rate, 20 years maturity, if…

A: Face Vale = 1000 Coupon = Coupon Rate × Face Value = 10 × 1000 = 100 Total Time Period = 20 years…

Q: 2 years left to maturity. what is the price of the bond?

A: Information Provided: Face value = $1000 Coupon rate = 4% quarterly Yield to maturity = 15% Term to…

Q: Carrie's clothes, has a five year bond oustanding that pay $60 annually. The face value of each bond…

A: a.Calculation of Coupon Rate of Bond:

Q: You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at…

A: Coupon Interest Rate  = 10% Face value = $1000 Coupon Amount =1000*10% = 100 Years = 6 years Yield…

Q: please mannully compute : Two years ago, you bought a 10-year, 6% annual coupon payment bond when…

A: In case the reinvestment and yield both the identical(9% in this case). Price of bond is given by  P…

Q: You own a bond that has a par value of $1,000 and matures in 5 years. It pays a 5 percent annual…

A: This question require us to calculate the bond's expected rate of return.

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: 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: what is the value of the bond.

A: Bond: It is a debt instrument issued by the firm to raise capital from the investors. The…

Q: On the issue date, you bought a 30-year maturity, 5% semi-annual coupon bond. The bond then sold at…

A: Calculation of realized return: Answer: Realized rate of return is 9.30%

Q: You own a $1,000 par value bond with 20 years to maturity that is paying an annual coupon rate of…

A: Price=Coupon Payment×1-1+YTM-nYTM+Face Value1+YTMn

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 5%Time period is 17…

Q: Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.…

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

Q: An investor is considering a discount bond that promises a payment of $14,400 in two years. If…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: A firm sells bonds with a par value of 1000 Rupees, carry a 8% coupon rate, with a maturity period…

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

Q: You purchased a $1,000 par value bond one year ago at a price of $1050 when it was issued. At the…

A: Bond is the security that provides coupon payment to the bondholder over the maturity period. The…

Q: You buy an 6.9% coupon, paid annually, 11-year maturity bond for $965. A year later, the bond price…

A: The question gives the following information:

Q: A twenty-year government bond with a face value of 120$ makes annual coupon payments of 1% and…

A: Bond price can be calculated using the following formula: Bond Price=Coupon×1-11+YTMnYTM+Face…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: I/Y = Rate = 10% N = Nper = number of years = 12 PMT = coupon = 1000*6% = -60 FV = future value or…

Q: Two year ago, you purchased a 6% coupon bond with 10 years to maturity and had a yield to maturity…

A: Holding period return (HPR) is the return which is earned by the company by holding a security for a…

Q: You are employed by an investment bank to estimate the value of a coupon-paying bond with the…

A: Solution:- Market value of the bond = Present value of coupon amounts receivable from bond at yield…

Q: You have just purchased an outstanding noncallable, 15-year bond with a par value of$1,000. Assume…

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

Q: What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the…

A: Bonds are primarily the debt instruments using which a company can raise funds.     With the given…

Q: You have just paid $1,135.90 for a bond, which has 10 years before it, matures.  It pays interest…

A: Bond Price = $1,135.90 Par value = $1,000 Yield = 8% Time Period = 10 Years

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 7% annual…

A: Interest rate is the rate under which the cost of financing taken place. For the purpose of…

Q: You purchased a bond for 1,100. The bond has a coupon rate of 9 percent, which is paid semiannually.…

A: Given: Current price = 1,100 Coupon rate = 9% Years = 17 Par value = 1,000

Q: You are provided the following information about a bond that was issued 7 years ago. The bond has a…

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

Q: A bond with 10 years to maturity has a face value of $1,000. The bond can be called in four years…

A: The price of the bond will depend upon the yield, the call price, the time to call and the coupoon.

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: A firm sells bonds with a par value of 1000 Rupees, carry a 8% coupon rate, with a maturity period…

A: a) Interest payment you receive each year = Par value * Coupon rate

Q: Consider a bond selling at par of $1,000 with a coupon rate of 5% semi-annual coupon payment, and 10…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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: A 28-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face…

A: Par value of bond = $ 1000 Coupon rate = 5.25% Semi annual coupon amount = 1000*2.625% = $ 26.50…

Q: You purchased a bond for 725. The bond has a coupon rate of 8 percent, which is paid semiannually.…

A: Expected rate of return is Yield to maturity.   Data given: ( Assumed all figures are in $) i) Face…

Q: you have just purchased a 15 year, 1000 par value bond. the coupon rate on this bond is nine percent…

A: Price of bond is the present value of coupon payment and present value of par value.

Q: A corporate bond has 30 years left to maturity, a par value of $1,000, coupon rate of 7.5% with…

A: According to the general finance rule, the intrinsic value of financial security represents a sum of…

Q: A twenty-year government bond with a face value of 120$ makes annual coupon payments of 8% and…

A: Number of years = 20 Face value FV = $120 Annual coupon rate = 8% Annual yield now = 3% Annual yield…

Q: Carrie’s Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of…

A: a) Bond's Coupon Rate = Annual Coupon / Face Value

Q: You just purchased a bond which matures in 5 years. The bond has a face value of $1,000, and has an…

A: Given that;Bond maturity period is 5 yearsFace value is $1000Current yield is 8.21%

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: BOND L Yield to maturity  12 coupon amount (PMT) = 6%*1000 60 Face value (FV) 1000 Yield…