A newly issued 10-year maturity, 7% coupon bond making annual coupon payments is sold to the public at a price of $975. What will be an investor's taxable income from the bond over the coming year? The bond will not be sold at the end of the year. The bond is treated as an original issue discount bond. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. $ Taxable income 72.50 x
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- A newly issued 10-year maturity, 6% coupon bond making annual coupon payments is sold to the public at a price of $976. What will be an investor’s taxable income from the bond over the coming year? The bond will not be sold at the end of the year. The bond is treated as an original issue discount bond. (Round your answer to 2 decimal places.)A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $993. What will be an investor's taxable income from the bond over the coming year? The bond will not be sold at the end of the year. The bond is treated as an original issue discount bond. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Taxable incomea. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%
- A newly issued 10-year maturity, 7% coupon bond making annual coupon payments is sold to the public at a price of $975. What will be an investor's taxable income from the bond over the coming year? The bond will not be sold at the end of the year. The bond is treated as an original issue discount bond.A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $800. What will be an investor’s taxable income from the bond over the coming year? The bond will not be sold at the end of the year. The bond is treated as an original-issue discount bond.An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond? A) $828. B) $893. C) $1,000. D) $1,686. *PV of $1 ordinary annuity is 17.15909: n = 40; i = 5% **PV of $1 is 0.14205: n = 40; i = 5% O A O B
- An investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 5 percent with interest being paid semiannually. If the investor expects to earn an 8 percent rate of return on this bond, how much should she pay for it? A. $950.75 OB.$1,003.42 OC. $875.38 OD. $1,122.87 E.$796.15A newly issued 10-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit interest, in dollars, for the first year of the bond's life? Assume semiannual compounding. Please show your work.A newly issued 10-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit interest, in dollars, for the first year of the bond's life? Assume semiannual compounding. Please show how this can be set up in Excel, thank you.
- 1.ABC Company offers to sell you a bond for $613.91. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?a. 6.71%b. 5.91%c. 5.59%d. 5.00%2.At a rate of 8%, what is the present value of the following cash flow stream? $0 at now; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3; and $500 at the end of Year 4.a.$ 717.31b.$788.32c. $625.54d. $701.153. ABC company has received a $50,000 loan from a bank. The annual payments are $6,202.70. If the company is paying 9% interest per year, how many loan payments must the company make?a. 12b. 19c. 15d. 134. ABC Company has 100,000 unit of common stock outstanding, its net income is $750,000, and its P/E ratio is 8. What is the company’s stock price?a. $40.00b. $20.00c. $60.00d. $30.005. ABC company 2005 sales were $100 million. If sales grow at 8% per year, how much would it be in…The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? O a. $483.98 b. $475.09 Oc. $508.35 Od. $502.57 O e. $543.93