valuation—Annual interest Calculate the value of the bond shown in the following table, assuming it pays interest annually. Par Value: $500 Coupon interest rate: 8% Years to maturity: 19 Required return: 12% The value of the bond is
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Calculate the value of the bond shown in the following table, assuming it pays interest annually.
Par Value: $500
Coupon interest rate: 8%
Years to maturity: 19
Required return: 12%
The value of the bond is:
$(enter your response here) (round to the nearest cent)
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- Bond Valuation-Semiannual Interest: Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. Bond Per Value Coupon Interest Rate Years to Maturity Required stated annaul return A $1,000 9% 9 11% B 500 13 20 12 C 500 12 5 15 The value of bond A is? The value of Bond B is? The value of Bond C is? Remember to round all answers to the nearest cent.Find the term (i.e. in years) of a bond with the following info: Purchase Price: 1048.81 Yield Rate: 4.5% compounded semiannually Coupon Rate: 5% payable semiannually Face Value: 1000 Redemption Value: Par or Face Value Give your answer as a whole number (i.e. X). Note: Coupons are paid at the end of every six month period.Find the total return earned by the bond with the characteristics shown in the table. Face Value $14,000 Annual Interest Rate 6.09% Term to Maturity 4 months What is the total return earned by this bond? $ (Round to the nearest cent as needed.)
- Given: Bond Face or Par Value: $1,000 Current Market Price: $995.34 Time to Maturity: 11 years Coupon: $30 per year, paid semiannually Bond is callable in five years at $1,030 a. What is the bond's coupon rate? b. What is the bond's current yield? c. What is the bond's yield to maturity? (Use financial calculator to solve, list all keystrokes)Consider information on the following bonds (with face value 100): Bond Maturity (years) Coupon rate Yield-to-maturity А 1 0% 5.0% В 2 5% 5.5% C 3 6% 6.0% Coupons are paid annually. What is the three-year spot interest rate?Calculate the selling price of the following 5-year bond issue: e. # bonds Bond rate of interest Interest payable Market rate of interest Bond maturity (face) value 600 5.8% semi-annually 6.0% $1,000
- Computing the Present Value of a Debt Security Compute the present value of a five-year bond with a face value of $1,000, a 10% annual coupon payment, and an 8% effective rate. Round answers to two decimal places. $AnswerBond valuation-Semiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Coupon interest rate 11% Years to maturity 9 Required stated annual return 11% 11 15 14 15 6 15 The value of bond A is $. (Round to the nearest cent.) Bond A B C Par Value $1,000 1,000 100Bond valuation-Annual interest Calculate the value of the bond shown in the following table, assuming it pays interest annually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Par value Coupon interest rate Years to maturity Required return $500 16% 20 18% The value of the bond is $ (Round to the nearest cent.)
- A bond: pay $75 each year in interest, and a $1,000 payment at maturity. The $1,000 is called? A) couponB) face valueC) discountD) yieldYou have the following information regarding an annual bond. What is the modified duration of this bond? Payment $40 YTM 6.5% Maturity (in years) 19 Par value $1,000the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 • Term to maturity: 8 years a. What will the holder receive when the bond matures? |-Select- b. If the current rate of interest on comparable debt is 7 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Would you expect the firm to call this bond? Why? -Select- v, since the bond is selling for a-Select- v. c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eight years if the funds earn 7 percent annually and there is $80 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar.