You are eyeing an investment in a corporate bond which has a YTM of 14.95%, and a stated rate of interest of 13.04% paid semi-annually, with a maturity of 20 years, and a PAR value of $1,000. What is the price of this bond? Multiple Choice $470.87 $879.39 $880.12 $1,702.84
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A: Given: Face value = 4,000 Coupon rate = 15.4% YTM = 8% Years = 12
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Q: what is the par value of the bond?
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A: N = 48 semi annual periods (24 years) Par Value = 1000 Semi Annual Coupons Coupon = Coupon Rate/2 *…
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A: The bond's price is present value of future coupons and par value receivable at maturity. bond pays…
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A: Given Information Par Value of Bonds =$1,000 Semi-annual Coupon rate =7% Years to maturity= 7 YTM=9%
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A: Correct answer is option (c) -27,571.
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A: Face value (F) = 1000 Coupon (C) = (10% of 1000) / 2 = 50 n = 2 years = 4 periods r = YTM = 8% per…
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A: Note: I am supposed to provide the solution of the first three subparts. Please repost the remaining…
Q: Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.95 percent and…
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Q: An investor is interested in buying a corporate bond with a face value of $1,000, AA rating, and a…
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Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 10% semiannual coupon, 19 years…
A: Information given in the question is as follows: Par Value = $1000 Coupon Rate = 10% Coupon…
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A: YTM: Semiannual rate is 5.07476% Annual rate or YTM is 5.07476%*2 = 10.15%
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- You are eyeing an investment in a corporate bond which has a YTM of 13.54%, and a stated rate of interest of 9.64% with a maturity of 20 years. What is the price of this bond? a. $734.69 b. $1,393.07. $406.79 d. $732.93Suppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual coupon interest rate, and has a market interest rate of 6%. What’s the price or the value of this bond? Select one: a. $1,069.31 b. $1,000 c. $9712 d. 927.66points You are eyeing an investment in a corporate bond which has a YTM of 11.35%, and a stated rate of interest of 9.91% with a maturity of 100 years. What is the price of this bond? Selected Answer: [None Given] Answers: a. $873.13
- Assume that you are considering the purchase an AEP 30-year, bond with an annual coupon rate of 8.22%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 11.45% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? $824.55 $945.01 $904.47 891.25 $727.90You'd like to buy a 25-year, noncallable bond with an annual coupon rate of 8.4% paid semi-annually. The bond has a par value of $1,000. If you require an 6.35% nominal yield to maturity on this investment, what should you be willing to pay for the bond? Oa. $1044.66. b. $1071.34 O c. $1255.19. d. $1012.53 0 e. $1184.27You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice A
- Which investment should I choose? Bond A: BBB Corporate bond, Price=$1,100, Par=$1,000, Coupon rate=4% (semiannual coupons), 13 years to maturity Bond B: BBB Corporate bond, Price=$5,900, Par=$5,000, Coupon rate=4.8% (semiannual coupons), 13 years to maturity Bond A Bond B They are equivalent, so both are the same Not enough info.Calculate the value of a R1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent. What is the correct answer A. R656.77 B. R835.45 C. R845.66 D. R2,201.08Consider a bond that is currently priced at $1100. If the face value of the bond is $1000, coupon payments are made semiannually, the bond matures in 5 years, and the YTM is 3%, what is the coupon rate? Group of answer choices 5.17% 2.58% 3.00% $25.84
- Give typing answer with explanation and conclusion If a bond is issued at the price of $10,000 per contract and promises a 5.7% interest every year, the contact will be redeemed by the issuer at a discount after 8 years for $9,200. If the market is offering a return of 4.8% for similar risk securities, what would be the price you are ready to offer for this bond? Question 4 options: $10,590 $10,040 $10,290 $9,740A bond with a 9-year duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.50%, you would predict that the new price of the bond will be “approximately” _________. Group of answer choices A. $1,125 B. $1,094 C. $1,035 D. $1,036Assume a $1,000 face value bond has a coupon rate of 8.4 percent paid semiannually and has an eight-year life. (a) If investors are willing to accept a 10.8 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round final answer to nearest dollar amount.) Present value $Type your answer here