Q: A 1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be…
A: Par value = 1500 Years to maturity = 10 Years Coupon rate = 15% Coupon amount = 1500*0.15 = 225…
Q: What is the maturity value of P3,000 invested at 9.5% compounded semi-annually for 3.5 years?
A: Answer: Calculation of the maturity value of P3000 invested at 9.5% compounded semi-annually for 3.5…
Q: what is the yield to maturity if it has 15 years to mature and 4.75% as coupon paid semiannually and…
A: Information Provided: Term = 15 years Coupon rate = 4.75% semi-annually Face value = $10,000 Current…
Q: The present value of $500 to be received 7 years from now at an interest rate of 8percent is ?
A: Calculation of Present Value:The present value is $291.75.Excel Spreadsheet:
Q: The present value is P 16,300.00, and the interest rate is 9% compounded monthly for 6 years. What…
A: Here, Present Value is P16,300 Interest Rate is 9% Compounding Period is Monthly i.e. 12 Time Period…
Q: By calculating the maturity value of $100 invested for i year at each rate, determine which rate of…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…
A: Data given: Coupon rate = 10% Par value = $1000 n= 3 years Required: Price if interest rate is a)…
Q: Consider a fixed-payment security that pays P100 at the end of every year fo the three years. If the…
A: Present value of bond can be calculated by using this equation Present value =C1/(1+r) +C2/(1+r)2…
Q: Consider an adjustable rate mortgage (ARM) of $190,000 with a maturity of 30 years and monthly…
A: Adjustable mortgage rate (ARM) is a mortgage with a variable interest rate i.e., under ARM , the…
Q: find the present value of $ 4000 due after five years if the interest rate is 10% compounded…
A: Present value is the current value of the future cash flows.
Q: 1. The following are exercises in future (terminal) values: a. At the end of three years, how much…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: The value at the end of 8 years for $200 with an interest rate of 12% is $895.19. True or False?
A: The value at the end of 8 years for $200 with an interest rate of 12% can be calculated using…
Q: what is the price of this debt by general floating equation (long cut formula)?
A: Bond or debenture valuation refers to a method which is used to compute the current value or present…
Q: What is the present value of a perpetuity (no maturity date) with a constant coupon payment of $100…
A: Present value of perpetuity = Coupen payment / Interest rate
Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…
A: The yield on the bond will reflect the rate of return at which the PV of all future cash flows is…
Q: The interest rate on a GIC is 3.50% compounded quarterly. What is the purchase price of the GIC if…
A: Interest is compounded quarterly. I = 3.5% = 3.5 ÷ 4 = 0.875% = 0.00875 F = A (1+ i)n 33103 = A ( 1+…
Q: If an investment of P750,000 that matures in 15 years but with certain specification that P 500000…
A: Here, Present value (PV) = P500,000 Earns half of 1% paid semi-annual for 5 years Rate = 1%/2 = 0.5%…
Q: Use the present value formula to find the present value of P30,000, if the interest rate is 16%…
A: Future value = P 30,000 Annual interest rate = 16% Number of compounding per year = 4 Number of…
Q: The price of T.V set is worth 20,000.00 that needs to be paid in 20 installments of 1000.00 each. If…
A: Following is the answer to the question
Q: 5. years. At a purchase price of 870, the yield rate is i The coupon rate is i-0.02. Calculate i A…
A: Calculate the annual coupon amount (PMT) by multiplying the face value of the bond which is 1,000…
Q: You have purchased a treasury bill for $960. It’s par value is $1000, and it’s maturing in 120 days.…
A: Formula to be used: Bond equivalent yield = ((Par value - purchase price)/purchase price)*365/d…
Q: Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is…
A: Formulas: Current price = Face value / (1+rate)^years
Q: 5. years. At a purchase price of 870, the yield rate is i, The coupon rate is i-0.02. Calculate i A…
A: The question is related to Bond Valuation. The yeild to maturity is calculated with the help of…
Q: 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it…
A: Coupon rate=5% Period =20 years YEILD to MATURITY =12% Par value =1000
Q: Compute the price of a 5-year 6.4% coupon with par value if 100$ that pays interest annually…
A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…
Q: You purchased a $1000 10-year bond that pays $95 annually. If the present value of the bond is…
A: Yield to maturity Years 10 coupon amount (PMT) 95 Face value (FV) 1000 Present value 1050
Q: Suppose Harry Davis issues 30-year debt with a par value of $1,000 and a coupon rate of 10%, paid…
A: We need to use approximation method for calculation of cost of debt Cost of debt =I(1-T)…
Q: If an investment of P750,000 that matures in 15 years but with certain specification that P 500000…
A: We are required to find out the return on its maturity and to choose which is the best option. There…
Q: At what simple interest rate is 20,500 the interest for 12 years on 40,000?
A: Simple Interest: It refers to the amount of interest that is charged on a certain amount of money at…
Q: A 25,000 5% bond with coupons payable semi-annually is redeemable at 97% at the end of 10 years. If…
A: Par value = 25000 Coupon rate = 5% Coupon amount = 25000*0.05/2 = 625 Redeemable price = 25000*0.97…
Q: Find the maturity value of P30,000 at the end of 4 1/2 years if the interest rate is 4% compounded…
A: The given rate is APR (annual percentage rate) and we have to convert it to EAR (effective annual…
Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…
A: We need to calculate the price of debenture i.e. present value in this question.
Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…
A: In this problem we need to compute the price of debenture with following details : Par value = $1000…
Q: The amount of $10,000 is invested and will be worth $21,000 in nine years. What in the continuoushy…
A: Continuous Compounded Interest rate is the interest rate that is calculated on the principal amount…
Q: What is the value of a 15-year, $1000 par value, 1.5% coupon bond with annual payment if the…
A: Bond valuation is a way to determine the theoretical fair value (or par value) of a particular bond.…
Q: Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6…
A: Given details are : Par value of bond = $1000 Maturity life = 10 years Interest rate = 6% Coupon = 0…
Q: Your company will generate $74,000 m annual reevenue cach year for the next seven years from a new…
A:
Q: If an investor wants to earn an annual interest rate of 10.76% on a 26 week T-bill with a maturity…
A: Interest means the extra amount which we received because of investment made and will be paid in…
Q: Tommy John is going to receive 1,000,000 in three years. The current market rate of interest is 10%.…
A: Introduction:- The following basic information as follows under:- Future value = $1,000,000 Time (n)…
Q: What is the interest rate if the PV of $50,000 to be delivered in 3 years is $43,000?
A: Calculation of interest rate: Answer: Interest rate is 5.16%.
Q: The interest rate on a GIC is 3.25% compounded quarterly. What is the purchase price of the GIC if…
A: The purchase price is the amount paid by a buyer for an asset, and it serves as the individual's…
Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…
A: Given, The present value of investment is $10,000 The rate of interest is 7% per year compounded…
Q: What will be the maturity value of P12,000 invested for four (4) years at 15% compounded quarterly?…
A: Invested amount (X) = P 12000 n = 4 years = 16 quarters r = 15% per annum = 3.75% per quarter
Q: If the interest rate is 3 percent then what is the present value of $8,198 to be received in 6 years…
A: Answer: Calculation of the present value of $8,198 to be received in 6 years: Present value = Future…
Q: A $1,000, 9.50% semiannual bond is purchasedfor $1,010. If the bond is sold after three years andsix…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: The annual interest rate is 7%. What is the present value (PV) of $1,000 that you'll receive in 14…
A: Present value is the worth of money on today’s date as compared to the future date which is covered…
Price of debenture
Step by step
Solved in 2 steps
- The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price by general floating formula if interest rate is 12%, Use excel.1. Suppose the term structure of interest rates is shown below: 1 year Term Rate (EAR%) 5.00% 2 years 4.80% 3 years 4.60% 5 years 4.50% 10 years 4.25% 20 years 4.15% What is the present value (PV) of receiving $1100 per year with certainty at the end of the next three years?If the interest rate is 15%, what is the present value ofa security that pays you $1,100 next year, $1,250 theyear after, and $1,347 the year after that?
- Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 6.10% r2 = 6.00% r3 = 5.80% r4 = 5.50% What are the following forward rates? Hint: f1, k refers to a forward rate for the period beginning in one year and extending for k years. fk,1 refers to a forward rate beginning in k years and extending for 1 year. f1,1 : f1,2 : f1,3 : f2,1: f3,1 :The term structure of interest rates is as follows: Maturity Spot Rate / 14% 212%/. What is the forward rate for one year, one year from now (f 1.1)? 2. If the forward rate for two years, one year from now (12. 1) is equal to 9%, then what is. the spot rate with maturity 3 years (13)?What is the present value of a perpetuity (no maturity date) with a constant coupon payment of $100 annually with interest rate of 10%? O a. $1100 O b. $100 O c. $909.1 O d. $90.9 e. $1,000
- if the simple interest discount rate is 9.681% , what is the future value of 45,907 after 9 years and 10 monthsThe annual payment of a 10-year fixed-income security is $50. The payments are made at the end of each year. The market-required rate of return is 10%. What is the current price of the securities?Given an interest rate of 6.5 percent per year, what is the value at date t = 8 of a perpetual stream of $900 payments with the first payment at date t = 17?
- Suppose the term structure of interest rates is shown below: Term Rate (EAR%) 5.00% 4.80% O $2,408 1 year 2 years 3 years 5 years 10 years 20 years The present value (PV) of receiving $1,100 per year with certainty at the end of the next three years is closest to O $3,612 O $4,214 O $3,010 4.60% 4.50% 4.25% 4.15%At present, you invest 10,000 pesos in a 15% security for 5 years. During the time, the average annual inflation is 6%. How much, in terms of present pesos, will be the account of maturity? Using this formula F=P(1+f)^n.If the one-year and two-year interest rates are 6.5% and 7% respectively, what should be the forward rate for year 2 (according to the expectations theory)? 7% 7.5% 7.75% 7.25% 6.75%. 6.5%