You buy an 6.9% coupon, paid annually, 11-year maturity bond for $965. A year later, the bond price is $1,075. Face value of the bond is $1,000. 1.What is the yield to maturity on the bond today? (Round your answer to 2 decimal places.) 2. What is the yield to maturity on the bond in one year? (Round your answer to 2 decimal places.) 3. What is your rate of return over the year? (Round your answer to 2 decimal places.)

Q: You purchase a bond with an invoice price of $1,032. The bond has a coupon rate of 8.1 percent, and…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…

A: Yield to maturity is defined as the total return, which used to get anticipated on the bond when the…

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: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum .…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: You purchased a 5-year, 6% annual-coupon bond with $1,000 par value. The yield to maturity at the…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

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: A $1,000 bond has a coupon of 7 percent and matures after twelve years. Assume thatt the bond pays…

A: The bond price will be the sum of present value of 7% coupon taken as annuity and $1,000 face value…

Q: A bond pays an annual coupon of 7% on a face value (par) of $1,000. The price of the bond is $1,020.…

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

Q: Compute the price of a $1,000 par value, 8 percent (semi- annual payment) coupon bond with 28 years…

A: In  this question we are required to calculate current price of the bond from the given below data :…

Q: A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to…

A: Given: Years = 15 Coupon = 9% Redeemable value = P6,300 Yield = 7.5% Purchase price = P6,750

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: What is the yield to maturity at a current market price of $876? Round your answer to two decimal…

A: Bond Par Value = $1,000 Time to Maturity = 4 years Coupon Rate = 10% Using the fomula:…

Q: You buy a bond for $958 that has a coupon rate of 6.20% and a maturity of 5-years. A year later, the…

A: Bond Yield is one of the most important part in valuating the bond. Bonds are compared on the basis…

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: what is the par value of the bond?

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

Q: Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds…

A: Part a 1: Time period = 4 years  Coupon Rate = 9%  Par value = $1000

Q: The market price of a 10-year bond is 984$, its yield to maturity is 8% per year, and annual coupon…

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

Q: The

A: Capital gains yield =p1-p0/p0 Po=original purchase price of security P1=current market price of…

Q: Bernard co. has 7% coupon bonds on the market that have 13 years left to maturity. The bonds will…

A: Current bond price will be equal to present value of Maturity Value and present value of interest…

Q: You are buying a bond at a clean price of $1,140. The bond has a face valueof $1,000, an 8 percent…

A: Face Value of Bond = $1,000Coupon Rate = 8% or 0.08Type of Coupon Payment = Semi-annuallyTime for…

Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…

A: Given:

Q: A bond of $40,000 was issued by the Central Bank on August 17, 2012, with a 30-year maturity. The…

A: Bond price refers to the discounted present value of the payments made in the future. It is the…

Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…

A: Calculating YTM using excel rate function

Q: Carrie's Clothes, Inc. has a six-year bond outstanding that pays $80 annually. The face value of…

A: Company issues bonds for the purpose of raising some funds and these are all considered to pay fixed…

Q: A Baxter, Inc.'s bond has a 4 percent coupon and pays interest semi-annually. The face value is…

A: Details given are as follows: Coupon rate = 4% Face value =$1000 Current price (Present value) =…

Q: Suppose you purchase a five-year, 12 percent coupon bond (paid annually) that is priced to yield 10…

A: Bonds are the debt instruments which are lent by the government or a corporation which gives fixed…

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 are purchasing a 20-year bond that matures in 6 years. The bond has a par value of $5,000,…

A: Yield to Maturity shows the total returns earned from the security if kept till maturity. To…

Q: You purchase a bond with an invoice price of $1,041. The bond has a coupon rate of 5.63 percent, it…

A: Accrued Interest = Par value * coupon interest rate/2 * (6-time to next coupon payment )/ 6 =…

Q: Crane Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar…

A: Computation:

Q: You purchase a bond with an invoice price of $1,053 and a par value of $1,000. The bond has a coupon…

A: Given: Invoice price = $1,053 Par value = $1,000 Coupon rate = 5.3%

Q: A six-year, semiannual coupon bond is selling for $991.38. The bond has aface value of $1,000 and a…

A: Given,Face Value of Bond (fv) = $1,000Price of Bond (pv) = $991.38Time Period = 6 yearsNumber of…

Q: Five years ago, Jolly company sold at par a $1,000 bond with a coupon rate of 8 percent and 20 years…

A: Using excel PV function

Q: A 25-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate…

A: Yield to maturity of a bond is the interest rate that makes the present value of the cashflow…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: A 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If…

A: Coupon rate of bond is the % of face value of bond, which is periodically payable at fixed regular…

Q: You are considering the purchase of a $1,000 face value bond issued by ABC company. The bond pays 9…

A: Bond is the fixed income security which provides its holder with the promise of future coupon…

Q: A bond makes two $45 coupon payments each year. Given the bond's par value is $1,000 and its price…

A: Given, Semi -annual coupon =$45

Q: Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds…

A: Therefore, the YTM at market price of $879 is 13.07% and at market price of $1,123 is 5.49%.

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: Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000.…

A: Present value 1270 coupon amount (PMT) = 15%*1000/2 75 Face value (FV) 1000 NPER (9*2) 18

Q: You purchase a bond with an invoice price of $1,045. The bond has a coupon rate of 5.66 percent, it…

A: A bond is an instrument of debt on which coupons are paid by the issuer. Coupons may be paid in…

Q: Calculate the current price of a $1,000 par value bond that has a coupon rate of 9 percent, pays…

A: In the given question we are required to calculate current price of the bond. Data given is as…

Q: Three years ago you purchased a 7% coupon bond that pays semiannual coupon payments for $962. What…

A: Bond equivalent yield  formulae is                         Face value-Purchase price/purchase price…

Q: One year ago you bought a 5-year 8% coupon bond that will pay $1,000 at maturity (its par value).…

A: Purchase price = $ 924.18 Par value = $ 1000 Coupon rate = 8% Coupon amount = 1000*0.08 = $ 80 Years…

Q: Carrie's Clothes, Inc. has a seven-year bond outstanding that pays $50 annually. The face value of…

A: Ans 1. Bond's coupon rate is defined as the yield of coupon rate through the fixed income security…

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: