You buy a zero-coupon bond with a face value of $16,000 that matures in 10 years for $7,000.  What is your annual compound rate of return?

Q: A zero coupon bond will be worth $10,000 when it matures and is redeemed after 10 years. How much…

A: Note: In Zero coupon bonds, interest is not paid periodically. However, lumpsum amount is paid at…

Q: Suppose you  offer  zero coupon bond  at $245 with a face value of $1,000 maturing in twenty years.…

A: given, face value= $1000 n=12 years ytm (r) = 8%

Q: Cardi is thinking of investing in a zero-coupon bond that sells for $250. At maturity in 16 years,…

A: A zero-coupon bond sells for $250 which means the present value of the bond is $250. It matures in…

Q: Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She…

A: Given, Face value of bond is $1000 Interest rate is 9%

Q: You are considering investing in a zero- coupon bond that sells for P250. At maturity in 16 years it…

A: Bond price = P 250 Par value = P 1000 n = 16 years Let the annual rate = r

Q: A Macrohard Corp. bond carries an 8% coupon, paid annually and has 10 years to maturity. The par…

A: a. given, coupon rate = 8% par=$1000 n=10 r=5% price of bond (p0)=coupon…

Q: Suppose you purchase a zero coupon bond with a face value of $1,000 and a maturity of 25 years, for…

A: Face value (FV) = $ 1000 Years to maturity (n) = 25 Years Price (PV) = $ 233

Q: Malenia is looking to purchase a 10-year, $10,000 face value zero coupon bond. Assuming the current…

A: Price of zero-coupon bond = Face value / (1 + r) n Wherre, r = interest rate N = Time period   a)…

Q: If Simon buys a 10 year 5% annual coupon bond has a face value of $1000 and is sold for 1100 5 years…

A: Using Excel Rate function

Q: What would be the price of 10 years bond with face value Rs 1000, coupon rate of 10% and required…

A: Bond is a fixed income instrument, debt instrument by investor to a borrower.

Q: What's the value to you of a $1,000 face-value bond with an 8% semi-annual coupon rate and 7 years…

A: Face value of the bond = $1,000 Semiannual coupon amount (C) = $40 (i.e. $1000 * 0.08 / 2)…

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: What's the value to you of a $1,000 face-value bond with an 10% annual coupon rate and 6 years to…

A: Given, face value of bond is $1000 Annual coupon 10% Term to maturity is 6 years.

Q: You want to buy a 9 year bond with a maturity value of $3,000, and you wish to get a return of 5.5%…

A: Using excel PV function

Q: Suppose you purchase a 10-year 5% (semi-annual pay) coupon bond. You plan to hold the bond for six…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: Consider an annual coupon bond with a face value of $100, 10 years to maturity,  and a price of $95.…

A: Future value = Monthly amount investment * Future value annuity @ given rate @ given time

Q: A zero coupon bond will be worth $15,000 when it matures and redeemed after 10 years. How much would…

A: This question requires us to calculate Present Value of a zero coupon bond which will be worth $…

Q: suppose that you have purchased a 3- year zero-coupon bond with face value of $1000 and a price…

A: Price of Zero Coupon Bond=$850Face Value of Bond=$1,000Time=3 Years

Q: What's the value to you of a $1,000 face-value bond with an 11% annual coupon rate and 11 years to…

A: As per the given information: Face value - $1,000 Coupon rate - 11% Years to maturity - 11 years…

Q: Consider an annual coupon bond with a face value of ​$100​, 14 years to​maturity, and a price of…

A: Future Value of Ordinary Annuity = P * ([1 + I]N - 1 )/I, where P is the payment amount. I is…

Q: You are selling a 30-year coupon bond with a par value of $10,000 and a coupon rate of 8% that has…

A: Bond is type of debt security which is issued by government or corporations for rising the funds.

Q: You buy a 30-year zero coupon bond with a face value of $1000 and a 3% interest rate, compounded…

A: Given information : Time period of bond (years) 30 Face value $1,000 Interest rate  3%…

Q: What is the value to you of a 9 percent coupon bond with a par value of $10,000 that matures in 10…

A: Par value (FV) = $10,000 Coupon rate = 9% Semi annual coupon amount (C) = $10,000*0.09/2 = $450…

Q: You own a 28-year, 3.4% annual coupon bond with $1,000 face value. If the yield to maturity is 3.3%,…

A: Information Provided: Term = 28 years Coupon rate = 3.4% Face value = $1000 Yield to maturity = 3.3%

Q: A 20-year zero coupon bond has a $1,000 face value, a required rate of return of 5 percent, and…

A: Using PV function in excel

Q: You are managing a portfolio of £20 million. Your target duration is 6 years, and you can choose…

A: The portfolio is referred to as the basket of different financial assets in which investment is made…

Q: You buy a 20-year bond with a coupon rate of 7.6% that has a yield to maturity of 9.5%. (Assume a…

A: Calculation of Return over the 6 months:The return over the 6 months is -3.84%.Excel Spreadsheet:

Q: What is the maximum price you will pay for a bond with a face value of $1,000 and a coupon rate of…

A: Bond value is the present value of all the cash flows a bond will generate in its lifetime assuming…

Q: Suppose you purchase a 30-year, zero-coupon bond with a face value of $100 and a yield to maturity…

A: Zero coupon bonds do not make coupon payments. They are generally sold at a discount and mature at…

Q: A bond sells for $900 and is expected to trade for $1000 in one year's time. If the return is 12%,…

A: In this question we need to compute the coupon rate on a bond.

Q: What is the value of a $1,000 par value zero-coupon bond maturing in 20 years to an investor…

A: Formulas: Current value = Face value / (1+Required rate)^years

Q: Suppose that you bought a 14% Drexler bond with time to maturity of 9 years for $1,379.75…

A: Here, As the Face Value of the Bond is not given in the question, we are assuming it to be $1,000.…

Q: How much would you pay for a zero coupon bond with a par value of $1000, a maturity of 21 years, if…

A: Zero coupon bond is a type of bond which will not pay with any coupon payment and it will only pay…

Q: Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6…

A: Given details are : Par value of bond = $1000 Maturity life = 10 years Interest rate = 6% Coupon = 0…

Q: You are considering investing in a zero coupon bond that will pay you its face value of$1000 in ten…

A: IRR Refers to the Internal rate of Return, At IRR the Net present value of the future cash flows is…

Q: Suppose you purchase a 30-year, zero-coupon bond with a face value of $100 and a yield to maturity…

A:

Q: What's the value to you of a $1,000 face-value bond with an 12% semi-annual coupon rate  and 7 years…

A: Given The face value of bond is $1000 Coupon rate is 12% Term to maturity is 7 years

Q: What is the value of a 10 percent semi-annual coupon bond with a par value of $1,000 that matures in…

A: Given: Coupon rate =10% semi annual Face value =$1000Semiannual coupon payment…

Q: An investor buys a 10-year annual coupon bond at a yield of 8.7% and sells it 2 years later when it…

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…

Q: How much should a $10,000 face- value, zero-coupon bond, maturing in 10 years, be sold for now if…

A: Given: Face value is $10,000 Years = 10 Interest rate = 4.5%

Q: You purchase a 6%, 20-year annual coupon bond for its face value. You will hold this bond for two…

A: Return on the bond at the end of the first year  = 6% + 6% of 6                               6 +…

Q: What is the value of a 10-year, $1,000 par value bond with a 10 percent annual coupon if its…

A: The value of a bond is the present value of the expected cash flows.

Q: What is the most we should pay for a bond with a par value of $1000, coupon rate of 4.2% paid…

A: The most that we should pay for a bond is its present value. Present value of a bond is essentially…

Q: Assuming a $1,000 face value, what was your total dollar return on this investment over the past…

A: Information Provided: Coupon rate = 4% Purchase price of bond = $800 Current price of bond = $850…