17. What is the yield to maturity cn a $10,000-face-value dis:ount bond, matuing t one year, which sells for $9.523.812

A6)

What must be the price of a $5,000 bond with a 6.5% coupon rate, semiannual coupons, and five years to maturity if it has a yield to maturity of 9% APR? ..... O A. $6,308 B. $3,604 C. $5,407 D. $4,505

4) A 10 year bond with $50, 000 face value has semiannual coupon rate 4% and semiannual yield rate 2%. Fill out the following amortization table. Principle Outstanding t Payment Interest герaid Balance 1 2 3 12

vvany vuipulauomi33utu y T00,000 J ytai pulius Jalluaiy i, 2020. TIIT DUnUs pay imititsi amually aiu liavt a slaitu rate of 6%. The market on day of issue was 8%. Required 1 Determine the issue price (PV) of the bond. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) 2 Prepare the bond amortization schedule using the effective interest method. Cash Interest Interest Amortization of Year Discount Carrying Value Payment Expense Discount Jan 1, 2020 Dec 31, 2020 Page 1 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 3 Record the necessary journal entry at date of issue and first interest payment. General Journal DR CR 4 Analyze the effect on the financial statements of the journal entry at date of issue (a) and the first interest payment (b). Assets = Liabilities + Equity Revenues - Expenses = Net Income la

klp.3

a 40 year, $100000 stripped bond ha sa 6% yield to maturity what price should it sell for a)9722.22 b)10425.98 c)11365.84 d)13255.84

a. An 8 ½%, 25-year, $1,000 bond is presently selling at a yield-to-maturity (YTM) of 9 4%. Assuming annual interest payments, what should you pay for the bond? b. What should you pay if interest is paid semiannually? c. Instead of a 25-year bond, they decide to issue 15-year bonds with annual payments. What should you pay for this bond if the YTM is 9 4%? Explain the differences in prices changes for (3a) and (3c) in terms of maturity. d. You buy an 8%, 15-year, $1,000 bond that pays interest annually when it is selling with a YTM of 7%. Immediately after you buy the bond, the YTM increases to 9%. What was the percentage change in the price of the bond? A bond has a market price that exceeds its face value. What type of bond is this? Describe the relationship between the coupon rate and the YTM. е.