You own a $1,000 par value bond with 20 years to maturity that is paying an annual coupon rate of interest of 11%. If the current yield to maturity on this bond is 12%, what is the value of the bond? The bond makes semi-annual interest payments. Select one: A. $925.31 B. $892.58 C. $924.77 D. $980.15

Q: Lahey Industries has outstanding a $10000 par-value bond with an 8% coupon interest rate. The bond…

A: The price of the bond is determined by evaluating the coupon payments till the maturity of the bond.…

Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum .…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: Bond Valuation refers to a technique of determining the par value or the fair value of the bond.…

Q: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…

A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel

Q: Madsen Motors's bonds have 19 years remaining to maturity. Interest is paid annually, they have a…

A: Bonds are issued by the government and corporations to raise finance. The lender pays the bondholder…

Q: You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at…

A: Coupon Interest Rate  = 10% Face value = $1000 Coupon Amount =1000*10% = 100 Years = 6 years Yield…

Q: ACB Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10…

A: Par value = $1000 Coupon rate = 10% Coupon amount = 1000*0.10 = $100 Years to maturity = 8 Years…

Q: A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to…

A: Given: Years = 15 Coupon = 9% Redeemable value = P6,300 Yield = 7.5% Purchase price = P6,750

Q: The market price of a 10-year bond is 957$, its yield to maturity is 8% per year, and annual coupon…

A: Bond is a type of long-term debt instrument used by governments and firms to raise loan.

Q: what is the par value of the bond?

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: The market price of a 10-year bond is 984$, its yield to maturity is 8% per year, and annual coupon…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: An investor has two bonds in his portfolio that have a face value of$1,000 and pay an 11% annual…

A: a) Computation:

Q: Assume a $1,000 face value bond has a coupon rate of 8.4 percent paid semiannually and has an…

A: Par value (FV) = $ 1000 Coupon rate = 8.4% Semi annual coupon amount (C) = 1000*0.084/2 = $ 42 Years…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: For bond L, it is given that;Par value of the bond is $1000Yield to maturity is 5%Time period is 17…

Q: Party Lover, Inc. has a 9% coupon bond that matures in 12 years. The bond pays interest…

A: Bond is a type of fixed income security as it provides fixed coupon amounts to the bondholders. The…

Q: You have just purchased an outstanding 15-year bond with a par value of $1,000 for$1,145.68. Its…

A: Yield to maturity is the rate of return expected to be earned if the bond is held till maturity.…

Q: You are offered to buy a 4-year coupon corporate bond in the beginning of its 7th month on its third…

A: Because you have posted multiple questions we will answer only the first question and for the…

Q: A 20-year bond has a face amount of $1000 and 8% quarterly coupons. The redemption value is $1050…

A: " Since you asked multiple sub-parts questions, we will answer the first three sub-parts for you as…

Q: what is the bond rate of return over the year?

A: Bond Rate of Return: It refers to the gain or loss of a security/investment for a certain period.…

Q: You buy a(n) 7.4% coupon, 5-year maturity bond for $976. A year later, the bond price is $1,136.…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: You buy an 6.9% coupon, paid annually, 11-year maturity bond for $965. A year later, the bond price…

A: The question gives the following information:

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: Current yield is the coupon payment which is to be paid for the market price of a bond. It is…

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: Bonds are the debt instruments by selling which company procures long-term funds at the fixed rate…

Q: 50.75 c. P875

A: Answer - Option a -  P793.53 Working Given  Par Value = P 1,000 Coupon Rate = 9% annually or 4.5 %…

Q: Carrie's Clothes, Inc. has a six-year bond outstanding that pays $80 annually. The face value of…

A: Company issues bonds for the purpose of raising some funds and these are all considered to pay fixed…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: I/Y = Rate = 10% N = Nper = number of years = 12 PMT = coupon = 1000*6% = -60 FV = future value or…

Q: A Baxter, Inc.'s bond has a 4 percent coupon and pays interest semi-annually. The face value is…

A: Details given are as follows: Coupon rate = 4% Face value =$1000 Current price (Present value) =…

Q: What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the…

A: Bonds are primarily the debt instruments using which a company can raise funds.     With the given…

Q: A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon…

A: Yield to maturity is the return earned by the bond holder by holding bond till maturity.

Q: You have just purchased an outstanding 15-year bond with a par value of $1,000 for$1,145.68. Its…

A: Working note:

Q: A $1,000 bond has a 6.5 percent coupon and matures after ten years. If current interest rates are 8…

A: 1.    Bond Price = 1000*6.5% * PVAF(8%, 10 years) + 1000* PVF (8%, 10 years)…

Q: You purchase a bond with an invoice price of $1,041. The bond has a coupon rate of 5.63 percent, it…

A: Accrued Interest = Par value * coupon interest rate/2 * (6-time to next coupon payment )/ 6 =…

Q: A bond has a face value of $300 and a coupon rate of 6% p.a., with coupon payments made four times a…

A: On the maturity date the bond issuer will pay the promised face value of the bond along with the…

Q: Five years ago, Jolly company sold at par a $1,000 bond with a coupon rate of 8 percent and 20 years…

A: Using excel PV function

Q: a) Bonds of TLM Corporation with a par value of R1000 sell for R960, mature in five years, and have…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: You purchased a bond for 1,100. The bond has a coupon rate of 9 percent, which is paid semiannually.…

A: Given: Current price = 1,100 Coupon rate = 9% Years = 17 Par value = 1,000

Q: what is the par value of the bond? P 6,130.08 P 5,816.44 P 5,750.45 P 6,209.11

A: Par value refers to price or value of a bond offered by the company at the time of issuance. It is…

Q: You are eyeing an investment in a corporate bond which has a YTM of 14.95%, and a stated rate of…

A: Value of the bond is the present value of the future payments to be received. Future value payments…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 8% annual…

A: Bonds are loan raised by the company in the stock market. Some bonds are fixed and some are variable…

Q: You own a $1,000 face value Bear Stearns Bond with a 6.5% coupn with semiannual coupons, the bond…

A: Yield to maturity on the bond is yield accrued to the investor if held the bond till maturity

Q: You purchased a bond for 725. The bond has a coupon rate of 8 percent, which is paid semiannually.…

A: Expected rate of return is Yield to maturity.   Data given: ( Assumed all figures are in $) i) Face…

Q: A 30-year, $1,000 par value bond has an annual payment coupon of 7.5%. The bond currently sells for…

A: Given: Years = 30 Par value = $1,000 Coupon = 7.5% Current price = $910

Q: What is the value of a Northern Pacific bond with an 11 percent coupon, maturing in 15 years? Assume…

A: Using excel PV function

Q: The brownstone corporation`s bond have 5 years remaining to maturity.

A: Yield to Maturity: Yield to maturity is the discounted rate of all the future cash flows from the…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual…

A: BOND L Yield to maturity  12 coupon amount (PMT) = 6%*1000 60 Face value (FV) 1000 Yield…

Q: A two-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000.…

A: a) Computation of realized compound yield to maturity when the interest rate is 8%:Total…

Q: Assume that you own a $1 million par value corporate bond that pays 7 percent in coupon interest…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: