5. Compute the yield to maturity of a discount bond selling for $15,000.00 with a face value of $18,000,00 in one year. SHOW YOUR WORK TO RECEIVE CREDIT

Q: Find the redemption value of a bond with the following info: Term: 10 Years Yield Rate: 4.5%…

A: Redemption value is the value at which the amount of bond will be redeemed by the firm to the…

Q: Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures…

A: Bond: It is a fixed income instrument that represents a loan made by an investor to a borrower. We…

Q: A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of…

A: The price of a Treasury bill (T-bill) with bank discount yield can be calculated using the following…

Q: at is the price of the following semi-annual bond? i. face value: $1,300 ii. maturity: 12 years iii.…

A: Bonds are units of corporate debt issued by companies and securitized as traded assets.

Q: 4. You buy a 4% 10-year $1,000 face value bond for $1,148.14. A year later, you sell the bond for…

A: The rate of return on the bond is calculated as sum of coupon yield and the capital gain yield

Q: Give typing answer with explanation and conclusion What is the coupon payment of a 4-year $1000…

A: Coupon payments are made to bond holder.Coupon payments are income for bond holder.

Q: Compute the price of the following bonds:   Bond A: Coupon bond, 4% coupon paid semi-annually,…

A: The question is based on the valuation of bond. The price of bond is calculated as present value…

Q: The nominal rate of return is, % earned by an investor in a bond that was purchased for $973, has an…

A: Solution:- Nominal rate of return means the percentage of return earned by investors on the amount…

Q: You have purchased a 14 year $1000 per value bond. The annual coupon rate on the bond is 9.7% paid…

A: d. 802. 67Explanation:Step 1: Calculate the present value of the annuity (coupon payments) using the…

Q: (ii) Doris has invested in a bond having a face value of Kshs 1,000,000 with a coupon rate of 10%…

A: BOND    Bond is a Financial Security which is Generally Issued by the Corporation's &…

Q: Provode to the Correct answer

A: The accrued interest for a bond can be calculated using the following formula: Accrued Interest =…

Q: Solving this problem

A: Given:- Coupon rate = 6.25%- Par value = $1000- Number of days to next coupon payment = 53- Total…

Q: find the price of the following bond:  $1,000 face value, 6% semi-annual coupon, 5.5% market rates,…

A: Here, Face value = $1,000 Semi-annual coupon = 6% Interest rate = 5.5% Time to maturity = 8 years To…

Q: following information, compute the rate of return earned on the bond if the bond was sold on the…

A: Bonds are paid periodic payment of coupon and par value of Bond is paid on maturity of Bond. Bonds…

Q: Find the duration (in years) of a 4-year bond with the following characteristics: $10,000 face…

A: Macaulay duration refers to the timeframe that a bond investment requires to produce cash inflow…

Q: A perpetual bond has face value $1,000, and coupon 8%. You bought this bond when the interest rates…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and…

A: Step 1 Bond valuation: It is the cycle to determine the fair value of a bond or present value of a…

Q: 1. A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year.…

A: A bond is a debt instrument where an institution can raise capital by borrowing (in form of bond…

Q: A $15,000, 5.5% bond is purchased 10.5 years before maturity to yield 8% compounded annually. If the…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: A $100 bond with annual coupons at 5% for the first 10 years and coupons at 4% for the next 5 years…

A: Working note:

Q: son.1

A: The objective of the question is to calculate the annual coupon payment of a bond. The coupon…

Q: A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: bond

A: Formula to calculate the current yield of the bond is: Current yield = Annual coupon payment/Bond…

Q: 5. An annual bond has the following features: Face value $1,000 Maturity 17 years Coupon rate 10%…

A: In the given question, Face value of Bond - $1000 Maturity - 17 years Coupon rate - 10 % Discount…

Q: A $14,000 bond has a coupon rate of 10% and is redeemable in 5 years. What is the yield rate of the…

A: The bond's annual interest income expressed as a percentage of its current market value is called…

Q: Please show all work without excel sheets. Compute the Macaulay duration of a ten-year 6% $1,000…

A: Face Value (F): $1,000 Coupon Rate (C): 6%3. Annual Coupon Payment: 6% of $1,000 is $60.4. RV…

Q: You own a bond that will pay $103, 6 years from today, and $211, 8 years from today. Your discount…

A: Present Value is a capital budgeting technique which helps in knowing the current value of future…

Q: Solve this problem

A: Step 1:  The semi-annual coupon payment is (6.25/2) % of $1000 = 1003.125​×$1000=$31.25. Step 2: The…

Q: Q4. A long term bond with a face value of quarterly. What are the amount of the interest payments?…

A: We can determine the amount of interest payments using the formula below:Payment per year =…

Q: Suppose you purchase a 10-year bond with 6.3% annual coupons You hold the bond for four years and…

A: A bond has two types of cash flows One is from coupon payment which is regular interest payment from…

Q: An investor buys a T-bill at a bank discount quote of 5.90 with 180 days to maturity for 9,705.00.…

A: BondEquivalentYield=(Facevalue−Purchaseprice)/Purchaseprice∗365/days.Facevalue=$10,000Purchaseprice=…

Q: A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of…

A:

Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4…

A: Solution: Present value of bond = P1,500 Discount rate = 4% Period = 1 year

Q: Determine the coupon rate on a $50,000 bond with an annual coupon payment of $2,800.

A: In this question we require to calculate the coupon rate from the following details: Face value of…

Q: Solve this one

A: Step 1:Step 2: Step 3: Step 4:

Q: 6.6% coupons. You hold the bond for four years, an ell it immediately after receiving the fourth…

A: Bonds are source of finance for the companies and bonds are paid annual coupon payments and par…

Q: Calculate the annual interest that you will receive on the described bond. A $500 Treasury bond with…

A: A treasury bond is a kind of debt security issued by the government and private companies for…

Q: A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of…

A: The objective of the question is to calculate the price of the bond equivalent yield for a T-bill…

Q: You purchase a 3-year corporate bond, which has a coupon rate of 8%, paid annually. Its par value is…

A: BOND PRICEBond price refers to the current market value of a bond, which is determined by various…

Q: If the promised payment for a bond is 110 dollars and the interest rate is 5% what is the bond price

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: If you were to purchase a bond for $1,100 that paid $50 per year in dividends, what will be the…

A: Current yield tells the annual return that an investor would get if the asset is held for a year. To…

Q: Find the total return earned by the bond with the characteristics shown in the table. Face Value…

A: Bond is financial instruments used to get funds for business in exchange of interest payment. This…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.