Q: Bonds sell for $1,150, they have a 6.75% annual coupond and 15 year maturity and callable in 6 years…
A: Nper = 15 Years (Yield to maturity) Coupon rate = 6.75% PMT = 1000*6.75%= 67.50 (coupon amount) Pv=…
Q: what is the bond’s yield to call? Interest is paid semiannually.
A: Yield to call is the return received by the holder of the bond that held until maturity. It is a…
Q: A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded…
A: Par value (FV) = $30,000 Coupon rate = 3% Quarterly coupon amount (C) = 30,000*0.03/4 = $225 Years…
Q: How much can be paid for a P100,000, 10% pa , 20 year bond with interest paid annually, 8 years…
A: Par value = P 100,000 Coupon rate = 10% Coupon amount = 100,000*0.10 = P 10,000 Years to maturity…
Q: gage bond issued by Automation Engineering is for sale for $8,900. The bond has a face value of…
A: Face value =10000 Market price =8900 Coupon =5% MATURITY =9 years Could =500 Annual
Q: What is the yield to maturity for a seven-year bond that pays 11% interest on a $1000 face value…
A: Calculation of yield to maturity (YTM): Excel spread sheet:
Q: P5000.00, 10-year, 8% bond that pays interest annually was purchased four years ago with a discount…
A: Rate of return to investor will be IRR (internal rate of return). IRR is the rate at which present…
Q: A $15,000 bond pays interest at 3.7% compounded semi-annually and is redeemable in 12 years. The…
A: YTM formula: YTM=2×Coupon+par-pricenpar+price2
Q: A 6-year bond pays interest of $80 annually and sells for $950. What are its coupon rate and YTM
A: Computation of the coupon rate and YTM is shown: Hence, the coupon rate is 8% and YTM is 9.12%.
Q: payment of 1 for
A: The correct is .. d) A bond can be issued at premium or discount based on the market interest…
Q: A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding.…
A: A bond is investment security issued by large business entities and governments to raise borrowing…
Q: Use the following tables to calculate the present value of a $774,000 @ 6%, 5-year bond that pays…
A: Lets understand the basics. For calculating present value of bond, we need to use below formula. =…
Q: On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a…
A: Bonds are the debts for the company issued to the investors at fixed rate of interest. There are…
Q: Ruby Corporation is offering P10 000.00, 8% bonds that pays interest quarterly for P8500.00. Jade…
A: Ruby Corporation: Face value = P 10000 Coupon = (8% of 10000) / 4 = P 200 Bond price = P 8500 n = 5…
Q: 1. A $1,000, 12% semiannual bond is purchased at an arbitrary year, held 3 years (six interest…
A: Face value 1,000 Interest 12% Interest payment Half-yearly Required yield 14%…
Q: Find the bond premium and purchase price of a 7%, m=2, Php 15,000 bond redeemable at par at the end…
A: Face value (F) = Php 15000 m = 2, hence this is a semiannual bond Coupon (C) = (7% of 15000) / 2 =…
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: P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in…
A: The value of the bond is the sum of present value of all the dividend and the present value of the…
Q: Margaret Company provided the following information in relation to the issuance of bonds at the…
A:
Q: A six-year $1,800 8.5% bond with semiannual coupons is bought for $1,918 and is redeemable for…
A: Bond Valuation
Q: The Lo Sun Corporation offers a 5.3 percent bond with a current market price of $858.50. The yield…
A: Given:
Q: A bond pays P342 interest per year and has face value of P9,964 at the end of 15 years, when it has…
A: Here coupon (PMT) = 342; rate = 13%; FV = 9964 and nper (or n) = 15. In excel we can use the PV…
Q: An 8%, P1,000 bond issued to yield 10% has 6 years remaining in its term. The bond pays interest…
A: The carrying amount of bond refers to the net amount of the bond's face value after considering an…
Q: newly issued 10-year maturity, 6% coupon bond making annual coupon payments is sold to the public at…
A: 6% coupon Price of bond=976 MATURITY =10 years Price of bond=present value of coupon +present…
Q: On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a…
A: The present value represents the present value of the bond that will be redeemed in the future.…
Q: If a $ 3.000, 12% semiannual bond is purchased for $3,100 and sold 5 years later for $2.900. What…
A: Purchase price (P0) = $3100 Selling price (P1) = $2900 n = 5 years = 20 quarters Total coupons…
Q: A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable…
A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…
Q: bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to…
A: Given information :
Q: Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid…
A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…
Q: A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public…
A: The taxable income would be the interest for the yearly coupon payment:
Q: What would be the selling price of a 10-year bond with a face value of P100.000, interest at 20%…
A: The question is based on the concept of Financial management.
Q: A company issues GHS10 million of 6% bonds at a price of GHS100.50 for each GHS100 nominal value…
A: Bond: When the company needs money, the company issues fixed-income security that the investor buys.…
Q: A 10%, 25 year bond with a par value of $1,000 pays on an annual basis has a current call feature…
A: Yield to maturity(YTM) is the return that the investor expects to receive from the bond by holding…
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: An investor wishes to sell a 20 year, 4%, $40,000 bond that will mature in 9 years. The bond pays…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the…
A: Modified duration = Duration / (1 + Ytm / n)
Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5…
A: Given Information, Face Value of the bond = $1000 Maturity = 5 years Coupon Rate = 8.7% Coupon…
Q: On January 1, 2018, Oman Cables Industry (SAOG) issued 12% bonds dated January 1, 2018, with a…
A: The bond is a type of securities that is issued by the company to borrow the funds from the…
Q: A 10-year $1,000 bond pays a nominal rate of9% compounded semi-annually. If the market interest rate…
A: If the cash flows are adjusted for the inflation then they are known as cash flows in constant…
Q: The market price of an $960000, ten-year, 12% (pays interest semiannually) bond issue sold to yield…
A: The market price of a bond can be computed by adding the present value of all the coupon receipts…
Q: A $400,000, 8.50% bond redeemable at par, with semi-annual coupon payments, is purchased 10 years…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: The face value of a bond is $3000.00. The firm offering the bond pays 1% of the sales price to the…
A: Rate of return is one of the discounted cash flow techniques used by business entities in order to…
Q: A bank offers 8% interest compounded quarterly. a) Determine the required selling price for a P10,…
A: Interest Rate = 8% Compounded quarterly Interest rate = 2% per quarter Face Value = 10,000 Time…
Q: A 10-year bond with coupons at 5% convertible quarterly is redeemed at 1500. If the bond is…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: ompu tech Ltd issued OMR 100,000, 6% 5 years term bonds on 1 January2020, it is due for redemption…
A: The question is based on the concept of Financial Intruments.
Q: A RM1,000 callable bond with 9% coupons payable semi-annually was redeemed for RM1,100. The bond was…
A: The coupon payment is the annual interest received by the bondholder from the date of issue of the…
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…
A P5000.00 debenture bond that matures in 10 years pays P150.00 every three months. If an investor who bought the bond computed a nominal return of 10% compounded quarterly, determine a) the bond rate; b) the
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?A bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to be redeemed. If the interest of the bond is 0.19. What is the current value of the bond?A P5000.00, 10-year, 8% bond that pays interest annually was purchased four years ago with a discount of P152.00. If the bond is sold today for P4750.00, determine a) the rate of return realized by the owner; (Ans. 7.8%) b) the rate of return realized by the purchaser if he holds on to the bond until maturity. (Ans. 9.1%)
- A bond pays $50,000 per year and has a face value of $500,000 at theend of 8 years when it has to be redeemed. If its current discounted priceis $390,000, what true interest could be earned on the bond? Ans. (14.9%)A bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years. If the face amount is P450,000, what is the fair price of the bond? Assume that the market rate is 2% compounded annually.A 8-year bond with a face value of 1000 dollars earns interest at 9.9 percent convertible semiannually. If the bond sells for 1096.14 dollars to yield an investor 7.8 percent convertible semiannually, what is the redemption value? Answer = dollars.
- A P10 000.00 bond that pays P300.00 quarterly matures in five years. Determine the discount or premium to be offered an investor who desires a yield of 14% to maturity. (Ans. Bd=P476.30)A $1,000, 9.50% semiannual bond is purchasedfor $1,010. If the bond is sold after three years andsix interest payments, what should the selling pricebe to yield a 10% return on the investment?A bank offers 8% interest compounded quarterly. a) Determine the required selling price for a P10, 000.00, 8-year, 7% convertible bond that pays interest every three months if an investor wants to realize the same rate of return from the purchase. (Ans. P9413.29) b) the bond pays interest every six months. (Ans. P9372.63)
- 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).The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?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 P1,442.31