Home and Hardware, Inc. recently issued a bond with a $20,000 par or face value. The bond has a five-year life and a coupon interest rate of 6%. Assume that the required return on the market for this bond is 8%. Given this information, calculate the market value of this bond today. The bond pays interest annually.
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Home and Hardware, Inc. recently issued a bond with a $20,000 par or face value. The bond has a five-year life and a coupon interest rate of 6%. Assume that the required return on the market for this bond is 8%. Given this information, calculate the market value of this bond today. The bond pays interest annually.
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- Enterprise, Inc. bonds have a 9 percent annual coupon rate. The interest is paid semiannually and the bond mature in eight years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk bond is 8 percent, what is the value of the bond? What is its value if the interest is paid annually? How to calculate this using mathematical calculation with formulas in finance?The Mobile Motors Inc. bond has 12 years remaining to maturity. Interest is paid annually, it has a face value of $2,000, the coupon interest rate is 7% and an 11% yield to maturity. Determine the current market price of the bond.A mortgage bond issued by Automation Engineering is for sale for $8,700. The bond has a face value of $10,000 with a coupon rate of 7% per year, payable quarterly. What rate of return will be realized if the purchaser holds the bond to maturity 8 years from now? The rate of return will be % per year.
- The bond paid $150 per year in coupon interest on the last day of each year (the last payment made today). You intend to hold the bond for three more years and project that 3 for $860. You also project that the bond will continue paying $150 in interest per year. Given the risk associated with the bond, its required rate of return (r ) over the next three years is 9.50 percent. Accordingly, the bond's fair present value is you will be able to sell it at the end of yearA mortgage bond issued by Automation Engineering is for sale for $8200. The bond has a face value of $10,000 with a coupon rate of 8% every six months, payable annually. What rate of return will be realized if the purchaser holds the bond to maturity 5 years from now?A bond has 10 years until maturity, a coupon rate of 8.9%, and sells for $1,110. Interest is paid annually. (Assume a face value of $1,000.) What will be the rate of return on the bond?
- Oklahoma Instruments has a bond issue outstanding that pays $60 annually. It has a face value of $1,000, and it will mature in eight years. Similar bonds are priced to yield 6.5%. What would you expect this bond to sell for? If you held this bond until it matures what would your investment yield?A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ every six months. (Round to the nearest cent.)Blossom Corp is issuing a 10-year bond with a coupon rate of 13 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond? Assume face value is $1000. Value of bond? $