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Exercise 1 (It's only one question)
What is the price displayed in specialized newspapers for the following bonds March 19, 2020, (the semi-annual coupon)?
| Name of the society | Coupon rate | The price in % | Yield to maturity | Date of issue | Due date |
| TMS | 8% | ? | 11% | January 04,2005 | January 04,2030 |
| FLK | 5% | ? | 14% | April 16,2009 | April 16,2024 |
| BBL | 12% | ? | 10% | October 19,2012 | October 19,2032 |
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Solved in 5 steps
- Question a The following data relate to a corporate bond which pays coupons semi-annually:Settlement date 01 March 2020Maturity date 31 December 2040Coupon rate 12%Yield to maturity 10%Face value $1,000Percentage of face value paid back to the investor on maturity 100%Using the above data, calculatei. The flat price of the bondii. Accrued interestiii. Invoice price of the bond Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line. .Question 5: A Treasury Bill quotation appeared in WSJ on January 28, 2022 (Prices are for January 27, 2022) Calculate the following and show the main calculator keys in your solution. 1/26/2023 0.735 0.725 +0.095 0.741 a. Days to maturity (Keep in mind one day adjustment) b. Asked and Bid Price c. Bond Equivalent Yield (BEY) d. Effective Yieldok ht nces You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid Asked Change 103.4586 103.5314 +.3274 104.4926 104.6383 +.4269 ?? +.5379 ?? Yield to maturity Ask Yield 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
- QUESTION 2 It is March 9, 2017. The price of a Treasury bond with a 10% coupon that matures on October 12, 2020, is quoted as 102-11. What is the cash price? There are There are The quoted price is $ days between October 12, 2016, and March 9, 2017. days between October 12, 2016, and April 12, 2017. (Please round your answer to FOUR decimalplaces) The cash price is therefore $ (Please round your answer to FOUR decimal places)Question #3 On January 1, 2021 a company issued a bond with a par value of $100,000 at 97. This bond has a coupon interest rate of 10% and will mature in 3 years. This bond will pay the interest expense annually on December 31. Straight-line amortization is used for premiums and discounts. Show the journal entries for the company for this bond. The company records journal entries on an annual basis. Date Асcount DR CRProblem 3: Callable Bonds: On Jan. 1, 2021, Z Corporation paid P3,300,000 for a 9%, P3,000,000 face value bond. The bond pays interest every June 30 and Dec. 31, and is due on Dec. 31, 2028. However, Z foresees that the issuer will likely call the bonds on Dec. 31, 2026 for a call price of 103. As a financial analyst, you deem it appropriate to use a risk-adjusted return of 11% for Z’s investment. Based on your analysis, how much did Z overpay or (underpay) for its investment?
- Examplify SM132 Final Exam Spring 2021 - Tuesday May 4 7PM | SEOE HONG TIME REMAINING EXAM CONTROLS TOOL KIT : FILTER > Question 15 FLAG QUESTION 11 Rating AAA AA A ВВВ 12 Yield 0.80% 1.60% 2.20% 3.20% 13 Given the table above which shows typical yields for 5 year bonds of varying credit ratings, what is the most likely credit rating of your company if your 5-year, semiannual bonds with a face value of $5,000 and a coupon rate of 5% are trading at a price of $5,412.81? 14 15 Answers A - D А A BBB СА D AAA Previous IONS VERSION 2M.6.4Instructions Present Value Tables Chart of Accounts Journal Final Questions Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued $60,400,000 of 10-year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $64,009,069. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be…Quiz Saved Help Save & Exit Submit Check my work Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Maturity date Dec 15, 2022 Market rate (%) 7.7 Issue date Purchase date Coupon rate (%) 5.65 :00 Dec 15, 1987 June 15, 2ee5 Assume that • Bond interest is paid semiannually. • The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity • Market rates of return are compounded semiannually. Bond price $4
- D ook You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Estimated $ Volume Company (Ticker) Coupon Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) 5.700 7.150 ?? Maturity January 15, 2037 January 15, 2031 January 15, 2033 Last Price Last Yield 94.219 ?? (000s) ?? 57,365 6.08 48,944 94.765 6.90 43,805 What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. nt Coupon rate ences %ccounting-20202 Ghadna Al Maskari Section 1 / Midterm Exam 2 Spring 2021 Which of the following is right about bonds trading Select one: O a. Bond prices are quoted as a percentage of the face value O b. No interest will be paid after bond trading O c. Newspapers and the financial press publish bond prices and trading activity daily O d. Bondholders can sell their bonds, at any time, at the current market price on national securities exchanges Next page 直。 اكتب هنا ل لبحثQuestion content area top Part 1 Bond 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.) Bond Par Value Coupon interest rate Years to maturity Required stated annual return A $1,000 9 % 8 9 % B 1,000 13 15 12 C 100 15 6 16 Question content area bottom Part 1 The value of bond A is $______ (Round to the nearest cent.)
