You have decided to invest in Corporate bonds. Your first bond investment (on Jan 2, 2021) is par value $1,000 DEF corporation bond, with a remaining maturity of 5 years,  interest is paid semi-annual,  the coupon rate is 4% (annual rate) and the effective market interest is 3% (annual rate). Calculate the amount you paid for the DEF bond on January 2, 2021  Calculate the amount of interest you will receive each year from the invest. How much cash will you receive at maturity for the bond?

Q: Arjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000, The bond pays $30 to…

A: Given: Face Value “FV” = $1000 Coupon = $30 Maturity payment = $1030

Q: on February 5, 2020 ZEE Borrowed Sh.50 Million through issue of 50 Million bond at par sh..1000/=.…

A:

Q: On January 1, 2020, ABC Corporation invested in P2,000,000 bonds of DEF Company that will mature on…

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

Q: A firm has just issued (January 1, 2018) a bond that has a face value of $1,000, a coupon rate of 7…

A: Bond value is the current worth of a bond calculated by discounting all the cash flows receivable…

Q: On January 1, 2020, Max Co. issued ten-year bonds with a face value of $5,000,000 and a coupon rate…

A: The issue worth of a bond is predicated on the link between the rate that the bond pays and also the…

Q: The company issued 4-year bond on January 1, 2018. The coupon rate is 8% payable semiannually. The…

A: Face Value  $        1,000.00 Time Period 4 Coupon rate 8% Yield to Maturity 10% Purchased…

Q: The face value for WICB Limited bonds is $250,000 and has a 6% annual coupon.  The 6% annual coupon…

A: The answer to this question can be calculated using bond calculator:   FACE VALUE COUPON RATE MARKET…

Q: An attorney has recently contacted you for help in determining the value of one of her client’s…

A: Given: Face value =$1000 Time to maturity =7 years Zero coupon bond YTM = 7.6% compounded annually…

Q: On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC…

A: A coupon bond is a kind of bond that provides a fixed amount of interest to its bondholders in the…

Q: Alvin has bought a bond from Company ABC at RM1,020 in year 2020. The face value of the bond is…

A: Purchase price of bond = RM 1020 Face value of bond = RM 1000 Coupon rate = 5% Coupon amount =…

Q: A well-known industrial firm has issued $990 bonds that carry 4% nominal annual interest paid…

A: Bonds refer to the financial instruments which are used by  the financial institutions  for raising…

Q: Your company is issuing a bond issue with the following features. Each bond has a face value of…

A: Dirty price of a bond is equal to the sum of clean price plus the accrued interest.

Q: You are called Iin as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The…

A: Bond valuation is done through the concepts of prestige value. The current value of the bond is the…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Given information: Par value of bond is $10,000 Purchase price is $9,500 Bond rate is 6.6% per year…

Q: Aeri Lee is looking to invest in a two-year bond from Aegyo Productions Corporation. The company…

A: Yield to maturity (YTM) on a bond is the rate of return which investors expect if the bond is held…

Q: Company H issues a $20,000,000 bond on January 1, 2020 with a coupon rate of 9%.  The present value…

A: Amortization Method: It is an accounting technique used to decrease the value of a loan or…

Q: purchased a 10-year, 3.80% p.a. semi-annual paying coupon bond with a Face Value (FV) of $1 000 000,…

A: Price of bond is sum of present value of coupon payments plus present value of par value of bond

Q: in June 2019, ACME Corp. issued $10 million of new bonds as follows: Maturity Date = May 2029 Coupon…

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

Q: Your yield for maturity on the Abner Bond is %

A: Bond Yield: It refers to the minimum return acceptable to the bondholers for investing in the…

Q: GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors…

A: Present value of face value = Face Value * Present Value interest factor ( market rate, number of…

Q: Two years ago (i.e., in November 2018), you purchased a newly-issued 30-year Treasury bond with a…

A: To determine the Price of Treasury Bond on November 2020.

Q: Stacy purchases a $60,000 bond for $57,500. The coupon rate is 6% per year payable quarterly. The…

A: The present worth of the bond will be the present value of the coupon and principal payments.

Q: On 1st January 2019, Indus Motors floated multiple bonds with a face value of Rs. 1,000 each to…

A: Face Value = 1000 Time Period (N) = 5 years Coupon = Coupon Rate * Face Value = 8%*1000 = 80…

Q: Aeri Lee is looking to invest in a two-year bond from Aegyo Productions Corporation. The company…

A: The total return that the bondholder expects to receive by holding the bond till the maturity date…

Q: 1. A bond matures in 20 years and pays an 8 percent annual coupon. The bond has a face value of…

A: There are two questions, solution for first question will be provided. If you want solution for…

Q: On Jan 1st 2019 Joe purchased a newly issued one-year government bond with a principal of $1,000 and…

A: Expected market price of bond = present value of future cash inflows in form of interest and…

Q: A well-known industrial firm has issued $1000 bonds with a 3% coupon interest rate paid…

A: Bond is a long-term debt instrument which is issued by entities to raise debt form public-at-large.…

Q: The face value for  bonds is $250,000 and has a 6 % annual coupon. The 6 percent annual coupon bonds…

A: Bonds are issued when an organization wants to raise funds from investors. These bonds are generally…

Q: 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that…

A: Coupon payment is fix periodic payment that is received on the bond . Coupon payment is calculated…

Q: Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have…

A: Par Value of $1,000 Quoted annual interest rate paid semi annually is 9% Yield to maturity is 12%…

Q: CIT plc has an outstanding issue of £1,000-par-value bonds issued 5 years ago with a 12% coupon…

A: Bonds: It is a debt instrument issued by the firm to raise capital. The issuer pays coupon payments…

Q: DEF Company issued a 5 year bond on january 2 2020 with a par value of 700000. the bond pays its…

A: Given that, Value of the bond = 700000 Coupon rate = 6%

Q: You are interested in buying one corporate bond and your broker has offered two corporate bonds for…

A: A bond is a monetary instrument issued by the government and companies. It offers a fixed rate of…

Q: Murray has made his decision and Lotus Coffee Inc. issued $60,000 of 5%, 3-year bonds on July 1,…

A: Lets understand the basics. When market rate of interest is lower than the bond interest rate then…

Q: Madman Fitness wants to raise lots of capital. They decide to raise money via issuing a bond on…

A: The bonds are issued at premium or discount depending on the effective rate of bonds.

Q: GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors…

A:

Q: A$1,000 face value corporate bond is purchased at the market price of $850 on January 1, 2021. It…

A: To Find: Future Value of reinvested coupons Average annual compound return Average annual compound…

Q: James Smith bought 10-year bonds issued by Harvest Foods five years ago for $930.00. The bonds make…

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

Q: An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and…

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: Company I issues a $40,000,000 bond on January 1, 2020 with a coupon rate of 7%.  The present value…

A: Req (a) The proceeds received from bonds is less than face value. Therefore bond issued at a…

Q: The face value for WICB Limited bonds is $250,000 and has a 6 percent annual coupon. The 6 percent…

A: Price of the bond is the present value of future cashflows

Q: Trew Company plans to issue bonds with a face value of $904,500 and a coupon rate of 6 percent. The…

A: Solution: Face value of bond = $904,500 Stated interest rate = 6% Market interest rate = 8.5% Period…

Q: On January 1, 2020, MMM Inc. issues $100,000 face value, 8% semiannual coupon bonds maturing in 10…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = $100,000 x 8% x 6/12 =…

Q: GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors…

A: Given that: Market rate of interest = 6% Par value of bonds = $550,000 Interest payment =…

Q: The face value for FDCD Ltd bonds is $250,000 and has a 6 percent annual coupon. The 6 percent…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: A bank has issued a bond on April 1st 2020 which pays coupons at a rate of 3% of the nominal value…

A: The annual coupon rate of the bond is 3%. The redemption value of the bond is 110% on September…

Q: Suppose GENERAL MILLS issued 1,250,000 bonds with the par value of $1000 and a coupon rate of 3.8%…

A: Semiannual interest = $ 1.25 Mn * 3.8%*1/2= $ 0.02375 Mn Issue value of bond= Pv of face value of…

Q: On January 1, 2021, a company issued an 8-year bond with a coupon rate of 15% and a par value of $…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…