In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses. b) Is Beth's coupon bond currently selling at a premium, par or discount? Describe the relationship between bond prices and interest rates.
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In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses.
b) Is Beth's coupon bond currently selling at a premium, par or discount? Describe the relationship between
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- In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses. a) What is the price of this bond in 2020 (6 years remaining) at a current market interest rate of 0.30% p.a.? Show formula, variables, calculation and a concluding statement in your response.In 2014 Ray purchased a 10-year, 3.80% p.a. semi-annual paying coupon bond with a Face Value (FV) of $1 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses. a) What is the price of this bond in 2019 (5 years remaining) at a current market interest rate of 1.60% p.a.? Show formula, variables, calculation and a concluding statement in your response. b) Describe the relationship between bond prices and interest rates. c) Ray decided to sell the bond from part a) and will invest the proceeds by buying blue chip shares. Explain whether this is wise by Ray by discussing the advantages and disadvantages of shares.On January 1st 2014, Roshan bought a 20-year treasury bond with a face value of $1000 and a coupon rate of 2.7% for $998.20. A year later she sold the bond at a price of $1003.70. Which of the following is correct? In 2015, the long-term interest rate went up but is below 2.7%. In 2015, the long-term interest rate went down but is above 2.7%. In 2015, the long-term interest rate went up and is above 2.7%. In 2015, the long-term interest rate went down and is below 2.7%.
- The Province of Ontario issued a $6000 bond with coupon rate of 9%, redeemable on February 1, 2018. If Julie purchased this bond on October 14, 2010 when the yield was 5% compounded semi-annually, calculate the purchase price of the bond. These steps may be important Step 1: Find previous interest payment date. Step 2: Find price at previous interest payment dateIn 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses. c) Beth decided to sell the bond from part a) and is considering her investment options. A friend suggested that she invests the proceeds by buying a short-term debt instrument. Explain two advantages of short-term debt instruments.Hello,I need help with the following question.On March 1, 2011, someone purchased 60K bond for 17 years at face value. The company regularly pays the annual interest rate due on its bonds.On March 1, 2016, the market interest rate is 8% and the purchaser is considering selling the bond. What is the market value of the bonds on March 1, 2016?Thank you very much for your help,Michael
- Cha, a registered engineer wanted to establish her own business. She planned to borrow a long term fund thru the use of bonds. A P350,000, 12% bond is being paid on dividends on semi-annual basis. This will be redeemed at P385,000 on September 21, 2019. It was bought on September 21, 2016 to yield an 8% interest. Using the data given, find the price of the bond.(b) An investor invested his wealth into three bonds for 7 years. The following table shows the market data of these three bonds: Market Price Modified Convexity 11.77 Macaulay Duration Bond A 93.26 3.19 108.04 6.19 44.57 Bond B Bond C 105.91 8.52 83.11 The term structure is assumed to be flat and the annual effective interest rate is currently 3.2%. Suppose that the investor has $50000 initially and he invests 40% of capital in bond A, 25% of capital in Bond B and 35% in bond C. Estimate the IRR of the bond investment if the future interest rate becomes i = 4%.San Miguel Company's 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market price of the bond is $1,105, and your required rate of return is 8.5 percent. a. Compute the bond's expected rate of return. b. Determine the value of the bond to you given your required rate or return. c. Should you purchase the bond? Why or why not? (*You must show your calculation process as well.)
- Three years ago, Mariam purchased a 30-year bond paying 4.75% annual interest. She now sees comparable 30-year bonds offering 6.25% annual interest rate. This scenario describes _____ risk. a. liquidity Only typed answer and don't use chat gptMartha purchases a $1,100 bond on November 19, 2024 when the yield-to- maturity is 5.65% compounded semi- annually. The bond has a coupon rate of 6.40% and is redeemable on December 31, 2028. a. What is the purchase price of the bond? b. What is the amount of discount or premium on the bond?Assumed that Amanda decided to purchase a corporate bond that pays 7 percent coupon payment. The purchase price is RM1,000. After five years of the bond investment, comparable bonds are paying 8.5 percent. Calculate the approximate price for which she can sell her bond. Determine either the bond value is increasing or decreasing and justify.