Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shownin the table below.Par Value$9,000Bond Rate PayableSemi-Annually10.5%Time Before Maturity Yield Rate9 years11.5%Conversion Periodsemi-annuallyThe purchase price of the bond is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)

Par value (FV) = $9,000 Semi annual coupon amount (C) = 9000*0.1050/2 = $472.50 Years to maturity =…

Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value $9,000 Bond Rate Payable Semi-Annually 10.5% Time Before Maturity 9 years Yield Rate 11.5% Conversion Period semi-annually The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value $9,000 Bond Rate Payable Semi-Annually 10.5% Time Before Maturity 9 years Yield Rate 11.5% Conversion Period semi-annually The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value $3000 Bond Rate Payable Semi-Annually 6% Time Before Maturity 8 years Yield Rate 5.5% Conversion Period semi annualy
Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Par Value $26,000 Bond Rate Payable Semi-Annually 5% Time Before Redemption 12 years The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Yield Rate 6% Conversion Period quarterly
Use the method of averages to find the approximate yield rate for the bond shown in the table below. The bond is to be redeemed at par. Bond Rate Face Value $5,000 Payable Semi-annually Time Before Redemption 7 years 5% Market Quotation 103.375 The yield rate is%. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
For the following bond redeemed at par, in the table below, determine (a) the premium or discount and (b) the purchase price. Yield Rate Bond Rate Payable Semi- Annually Time Before Compounded Semi- Annually Par Value Maturity $22,000 8.4% 12 years 5.3%
A $27,000, 6% bond redeemable at par with interest payable annually is bought 12.5 years before maturity. Determine the premium or discount and the purchase price of the bond if the bond is purchased to yield (a) 7% compounded annually; (b) 5% compounded annually. (a) The is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Use the method of averages to find the approximate yield rate for the bond shown in the table below. The bond is to be redeemed at par. Market Face Value Bond Rate Payable Semi-annually Time Before Maturity Quotation $10,000 6% 9 years 103.625 The yield rate is %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
A $26,000 bond with interest at 5.5% payable semi-annually and redeemable at par is bought two years before maturity to yield 5.8% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule. The is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) h
A $23,000 bond with interest at 7.1% payable semi-annually and redeemable at par is bought two years before maturity to yield 7.4% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule. (... The is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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".
Determine the price of a $1.7 million bond issue under each of the following independent assumptions: Maturity 10 years, interest paid annually, stated rate 7%, effective (market) rate 10%. Maturity 10 years, interest paid semiannually, stated rate 7%, effective (market) rate 10%. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 7%. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 7%. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%.
Determine the price of a $1.7 million bond issue under each of the following independent assumptions: Maturity 10 years, interest paid annually, stated rate 5%, effective (market) rate 7%. Maturity 10 years, interest paid semiannually, stated rate 5%, effective (market) rate 7%. Maturity 10 years, interest paid semiannually, stated rate 7%, effective (market) rate 5%. Maturity 20 years, interest paid semiannually, stated rate 7%, effective (market) rate 5%. Maturity 20 years, interest paid semiannually, stated rate 7%, effective (market) rate 7%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1.)
Determine the price of a $1.3 million bond issue under each of the following independent assumptions: 1. Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. 2. Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10%. 3. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 4. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 5. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%. Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1.) Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 Required 4 Required 5 Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. Note: Round your answer to the nearest whole dollar. Price of bonds Required 2 > Next

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