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: Fingen's 15​-year, ​$1,000 par value bonds pay 15 percent interest annually. The market price of the…

A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…

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: 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: Suppose you purchased one of SWH's bonds on the day it was issued. The bond had a coupon rate of…

A: Bonds are debt instruments issued by companies.The issuing company has to pay periodic coupons to…

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: Create a similar graph to the one shown on page 239, Figure 7.3. Graph two bonds each, with a face…

A: Bond price:A bond price is a crucial aspect of the financial market, as it represents the cost of…

Q: A bond promises to pay $5,350 next year. The interest rate on this bond is 7%. The price of this…

A: In the given question we need to compute the price of a bond.

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: Fingen's 12 yr, $1000 par value bonds pay 9% interest annually. The market price of the bonds is…

A: Time = t = 12Face Value = fv = $1000Coupon Rate = c = 9%Current Price of Bond = pv = $1110Required…

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: 14year

A: A. To compute the bond's yield to maturity, we need to find the rate at which the present value of…

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: 4-12. Based on a desired nominal rate of return (yield) of 6%, a bond is purchased for $5,000. The…

A: Given Information: Yield = 6% Bond Purchase Price = $5,000 Interest Rate = 12%

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: Fingen's 14-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the…

A: Yield to maturity is the rate of return that a bondholder will get if they invest in bond and the…

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: 2) A 10 year bond with 5 years remaining is sold at a discoung of $4.12 .If the face and redemption…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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: 7. A bond has a face value of $20,000 and a maturity date of 20 years. The bond pays a quarterly…

A: Solving 7 (a):Variables in the question:Face value=$20000N=20 yearsn(period)=20 years x…

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: Problem #3. Find the total proceeds from the sale of 15 bonds with a coupon rate of 8.25 and a…

A: We have to find the net proceeds from sales of 15 bonds. We know the clean price and the days since…

Q: A 7 year bond with maturity value of $5504.1 and a yield rate of 5% was sold 15 months before…

A: Maturity value of the bond = $5,504.10 Yield rate = 5.00% Number of years = 7 years Purchase value…

Q: bond

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

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: Showing your calculations, calculate the price of a $100,000 debenture bond that matures in 15…

A: The price of an asset is computed as the present value of the future cash flows associated with the…

Q: Suppose that a company issues $10000 face value discount bond maturing in one year.What is the price…

A: The bond is a fixed-income debt security. The current price of the bond is the discounted value at a…

Q: ​Fingen's 16​-year, ​$1,000 par value bonds pay 11 percent interest annually. The market price of…

A: Time = nper = 16 YearsFace Value = fv = $1000Coupon Rate = 11%offer Market price of Bond = pv =…

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: 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: ind the total proceeds from the sale of 15 bonds with a coupon rate of 8.25 and a current price of…

A: A bond is a debt instrument certifying the loan given to a particular person or person. The interest…

Q: price = $950,000. Interest rates are

A: In this question, a bank holds a 10-year $2 million face value bond with a duration of 8 years. The…

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: (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 5 percent…

A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…

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: Find the purchase price of each bond bought on the given dividend date. Accomplish this task at the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: San Miguel Company's 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market…

A: A bond is a debt instrument that allows the issuer to raise funds from the public. The bond's issuer…

Q: Determine the amount of the semi-annual coupon for a bond with a face value of Php 50,000 that pays…

A: Compound = n = 2 (semiannually) Face value = fv = Php 50,000 Coupon rate = r = 10%

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.