A bond that matures in one year has a $500 face value and a $60 coupon. What is the price of the bond if the interest rate is 6 percent and the bond was purchased by the present owner for $450? $103.77 $481.13 $528.30 $500.00
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A bond that matures in one year has a $500 face value and a $60 coupon. What is the price of the bond if the interest rate is 6 percent and the bond was purchased by the present owner for $450?
$103.77
$481.13
$528.30
$500.00
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- You purchased a coupon-bearing bond at $800 and resold it at $900 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. 0.075 O B. 0.125 O C. 0.067 O D. 0.200Consider 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 P1,442.31A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have received in payment from the bond issuer after the bond has reached its maturity date of one year? $200 $406 $6 $206
- 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? a. P1,560.00 b. P1,540.00 c. P1,440.00 d. 1,442.31An investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 5 percent with interest being paid semiannually. If the investor expects to earn an 8 percent rate of return on this bond, how much should she pay for it? A. $950.75 OB.$1,003.42 OC. $875.38 OD. $1,122.87 E.$796.15A bond promises to pay $150 in one year. What is the interests rate on the bond if its price today is $65,$75 and $85?
- The price of a bond with 4 years to maturity that pays interest of $12 Question 4. each half-year is $106. What is the current yield, the capital gains yield and the yield to maturity of this bond? What is the internal rate of return of this bond 1005. An annual bond has the following features: Face value $1,000 Maturity 17 years Coupon rate 10% Discount rate 12% a. What is the market value of the bond? b. If you bought the bond for $711.96, did you make a profit or a loss? c. Would you buy the bond if it is currently selling for $800.00?Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. a. What is the current selling price of the bond?b. What is the current yield of this bond?
- If the YTM on the following bonds are identical except, what is the price of bond B? Bond A Bond B Face value $1,000 $1,000 Semiannual coupon $45 $35 Years to maturity 20 20 Price $1,098.96 ?A bond has a face value of ₱100, 000, 4-year maturity period, and 3.2% coupon. What is the total interest paid to the bondholder? a. ₱12, 700 b. ₱12, 800 c. ₱12, 500 d. ₱12, 600A bond promises to pay you $7,000.00 in 10 years. If you are able to earn 6 percent on securities of equal risks, what would be the present value of the Bond? (to the nearest dollar) Select one: a. $3,589 b. $3,909 c. $3,727.00 d. $4,200