(Exercise 6.13) A 14-year bond with semiannual coupons is bought at a discount to yield 7% convertible semiannually. If the amount for accumulation of discount in the 27th coupon is $5, find the total amount for accumulation of discount during the first 4 years in the bond amortization schedule. ANSWER = $
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Emma bonds will mature in eight years; the coupon rate of the bond is 6% paid semiannually. If the appropriate discount rate is 4%, what is the value of the bond? O a. $1073.25 O b. $1135.78 O. $1543.11 O d. $1293.02(Exercise 6.13) A 12-year bond with semiannual coupons is bought at a discount to yield 6% convertible semiannually. If the amount for accurnulation of discount in the 22th coupon is $9, find the total amount for accumulation of discount during the first 4 years in the bond amortization schedule. ANSWER = $
- .(Exercise 6.13) A 20-year bond with semiannual coupons is bought at a discount to yield 9% convertible semiannually. If the amount for accumulation of discount in the 39th coupon is $6, find the total amount for accumulation of discount during the first 6 years in the bond amortization schedule. ANSWER = $Assume that a company issues a new bond with coupon rate of 11 %, 5% yield and $100 par value bond. Coupon is paid annually. The bond has three years to maturity. (1) What is the Macaulay duration of this bond? (ii) How would you interpret the result obtained in part (e)(i) above?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) yield
- Assume that a company issues a new bond with a coupon rate of 13 %, 7% yield and $110 par value bond. Coupon is paid annually. The band has three years to maturity. Calculate and interpret the Macaulay duration of this bond? (ii) Discuss about some possible limitations of the Macaulay duration.7. Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment is on December 1. The par amount purchased on the bond is $100,000, and its annual coupon rate is 4% paid semiannually. (1) What is the accrued interest using the 30/360-day count convention? (2) What is the accrued interest using the actual/actual day count convention?7. Suppose a bond is purchased with a settlement date of October 15 and the next coupon payment is on December 1. The par amount purchased on the bond is $100,000, and its annual coupon rate is 4% paid semiannually. (1) What is the accrued interest using the 30/360-day count convention? (2 points) (2) What is the accrued interest using the actual/actual day count convention? (2 points)
- A 14-year bond earns interest at 9 percent convertible semiannually and has a yield rate of 7.3 percent convertible semiannually. If the book value immediately after the 7th coupon payment is 1135.14 dollars, and the book value immediately after the 11th coupon payment is 1112.47 dollars, what is the face value? Note: Don't assume that the face value and redemption value are the same. Answer= dollars.Vhat is the yield of each of the following bonds, if interest (coupon) is paid semiannually? 6% 20 8.02 % 5800.00 d of the following bond if interest (coupon) is 1 Data Table - X Years to Coupon Rate Matunty 12% 10 (Click on the following icon n in order to copy its contents into a spreadsheet.) eld of the following bond if interest (coupon) is Par Value $1,000.00 Yield to Maturity Matunty Doupon Rale 6% Price $800.00 $1,000.00 S3.110.00 $1.130.00 క Noturty 20 10 Coupon ato $1.000.00 12% 7% 20 $5,000.00 $1.000.00 7% 20 8% yield of the following bond if interest (coupon) is Yoars to Coupon Hate Print Done Maturity 00 8%Calculate the value of a bond given: Coupon Interest Payments (C) is $50; Capitalization Rate (K) is 17%; Years to Maturity (n) is 5; Par Value at Maturity (P) is $5,000; Compounded Semiannually. 2,539.49 OR 4539.49?