For a three year bond of $2,200 at a simple interest rate of 9% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)
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- For a three year bond of $2,600 at a simple interest rate of 11% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is $ 143. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)Listen Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7. It sells at a total =$(20.00+105.00). The Macauley duration of the bond is? Answer with two digits decimal accuracy. Blank Excel Worksheet Your AnswerSuppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $700. a. In the table provided below, calculate and enter either the interest rate that the bond would yield to a bond buyer at each of the bond prices listed below or the bond price at each of the interest yields shown. Instructions: Enter your answers in the gray-shaded cells. For bond prices, round your answers to the nearest hundred dollars. For interest yields, round your answers to 2 decimal places.
- The interest rate on one-year Treasury bonds is 1.1 percent, the rate on two-year T-bonds is 1.3 percent, and the rate on three-year T-bonds is 1.5 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. _________ % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. _________ %Suppose the current interest rate on a one-year bond is 2% and the current interest rate on a two-year bond is 4%. The term premium on a two-year bond is 1%. According to the expectations hypothesis, what interest rate should we expect on a one-year bond next year? Answer as a percentage to one decimal place and do not include symbols (e.g. $, %, commas) in your answer. Answer:Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $750, calculate the interest rate that the bond would yield to a bond buyer. Show all work.
- Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is * P1,560.00 P1,540.00 P1,440.00 O P1,442.31The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. One-Year Bond Rate 2.00% 3.00% 4.00% 7.00% 10.00% 11 =% 21 = 131 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 141 151 = = = Year 1 2 3 4 5 % % % % Multiyear Bond Rate 2.00% 3.00% 6.00% 8.00% 11.00%Assume that a 5-year bond pays interest of $110 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12 percent. Given this information, determine the duration of this bond. Answer truncated to 2 decimal places. For example, if your answer is 3.267, enter "3.26".
- A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. It also pays $60 per year as an annual interest payment. What is the bond's price? Assume annual compounding. Round your answer to two decimal places. Do not include the dollar sign or negative sign (if applicable).Compute the specified quantity. A 7 year bond costs $30,000 and will pay a total of $2,000 in interest over its lifetime. What is its annual interest rate r (as a percent)? (Round your answer to three decimal places.) r =Determine the price of a single bond given the following information. Round your final answer to two decimal places. For example, if your answer is $89.12, enter 89.12 with no currency symbol. 4.39% Cost of Debt (Kd) The company is expected to pay the following forecasted CFFD (Cash Flows For Debt): Year 1: $50.00 interest payment Year 2: $50.00 interest payment Year 3: $50.00 interest payment Year 4: $50.00 interest payment Year 5: $50.00 interest payment The company will also pay the bond's face value of $1,000.00 at the end of year 5. The company faces a 25% tax rate. Type your answer...