A 10%, 25 year bond with a par value of $1,000 pays on an annual basis has a current call feature amounting to 1,300 within 5 years. 1. What is the YTM of the bond if the current price of the bond is $1,100?(Answer with % in two decimal places. Ex. 1.23%) 2. What is the YTC of the bond if the current price of the bond is $1,100?(Answer with % in two decimal places. Ex. 1.23%)
Q: Bonds sell for $1,150, they have a 6.75% annual coupond and 15 year maturity and callable in 6 years…
A: Nper = 15 Years (Yield to maturity) Coupon rate = 6.75% PMT = 1000*6.75%= 67.50 (coupon amount) Pv=…
Q: On January 1, 2020, Company H issues a $20,000,000 bond with a 9% coupon rate. The bond has a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…
A: A bond is borrowing security that is issued by the company in order to raise funds from the market…
Q: A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: A twenty-year $1,000 bond with semiannual coupons is redeemable at par and has a nominal coupon rate…
A: Purchase price of bond will be the present value of coupon amounts and maturity value.
Q: A $1,000 face value bond issued by the Purud Company currently pays total annual interest of $80 per…
A: In financial calculator: Enter FV = 1000 Enter n = 13 (life of the bond) Enter PMT = 80 (interest)…
Q: a $10,000 bond with semi-annual cupon was originally issued with a 5.4% cupon and 10 years to…
A: In a financial market, the term bond depicts debt security that is sold by large business firms to…
Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8…
A: Relevant information : Face Value : $1,000 Coupon rate : 9.5%
Q: A bond matures in 12 yesrs has a $1000 par value. The annual interest rate is 13 percent. The…
A: Time period of bond = 12 years Par value = $1000 Coupon Rate = 13% Yield to maturity = 14%
Q: A $10000 15-year bond is priced to yield at 12% compounded quarterly. It has quarterly coupons of…
A: Face Value = $10,000 Time Period = 15 Years Yield = 12% compounded quarterly
Q: A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon…
A: Par value of bond = 1000 Coupon rate = 6% Coupon amount = 1000 * 6% = 60
Q: A $30,000 bond has annual coupons and is redeemable at the end of fourteen years for $22,700. It has…
A: Given Information : G = 30,000, F = 18,220, j= 2%
Q: llais Company’s bond has an $85 annual interest payment that will mature in 10 years at a value of…
A: The yield of the bond is the required rate of return on the investment made by the bondholders. The…
Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in…
A: Price of bond = Coupon Amount * PVAF ( rate, number of periods ) + Face Value * PVIF ( rate, number…
Q: Company H issues a $20,000,000 bond on January 1, 2020 with a coupon rate of 9%. The present value…
A: Amortization Method: It is an accounting technique used to decrease the value of a loan or…
Q: A bond with 18 years to maturity has an annual interest payment of $30. If the bond sells for its…
A: Let the face value be $1000 therefore price of the bond =$1000 using excel rate function current…
Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at…
A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence,…
Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15…
A: Following details are given in the question : Face value = $1000 Coupon rate = 8.3% Time period =…
Q: A bond with 11 years to maturity has an annual interest payment of $50. If the bond sells for its…
A: Current yield represents the return earned on a bond in a year. Current yield is expressed in…
Q: A 15-year, 11% coupon bond with semi-annual payment and a par value of $1,000 may be called in 5…
A: Since you have asked a question with multiple parts, we will solve the first parts for you. Please…
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: The Lo Sun Corporation offers a 5.3 percent bond with a current market price of $858.50. The yield…
A: Given:
Q: A 6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon…
A: Given: Face value = $1000 Coupon rate = 6% = 0.06 The formula to compute the total price paid is:…
Q: A $200,000, 6.50% bond redeemable at par, with semi-annual coupon payments, is purchased 12 years…
A: Bond Purchase Price: The present discounted value of a future cash stream provided by a bond is…
Q: Labadi Inc issues a bond that has a stated interest rate of 10%, face amount of $100,000, and is due…
A: Number of periods = 5 years*2 Number of periods = 10 Coupon rate = 10%/2 Coupon rate = 5% Market…
Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 5…
A: When required rate of bond equal to coupon rate than price of bond equal to par value of bond.
Q: A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount.The bond is now…
A: Bond is a debt security that is issued by organizations to raise debt funds from investors in…
Q: The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon…
A: The present value of bond can be calculated as present value of coupon payments and present value of…
Q: The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15…
A: Par value (FV) = $5000 Years to maturity = 15 Years Coupon rate = 8.4% Semi annual coupon amount (C)…
Q: 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it…
A: Coupon rate=5% Period =20 years YEILD to MATURITY =12% Par value =1000
Q: The Saleemi Corporation's $1,000bonds pay 5 percent interest annually and have 13 years until…
A: A. Yield to maturity = [Interest +(Maturity value - Purchase Price)/number of years of…
Q: A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return…
A: A bond is a financial security issued by many business organizations and governments to raise debt…
Q: Capex Inc. issues a bond of $1,000 which pays interest semiannually at a coupon interest rate of…
A: Capital markets is defined as the market, where the places of an investments as well as savings are…
Q: A 10%, 25 year bond with a par value of $1,000 pays on an annual basis has a current call feature…
A: Yield to maturity(YTM) is the return that the investor expects to receive from the bond by holding…
Q: Company I issues a $40,000,000 bond on January 1, 2020 with a coupon rate of 7%. The present value…
A: Req (a) The proceeds received from bonds is less than face value. Therefore bond issued at a…
Q: An investor wishes to sell a 20 year, 4%, $40,000 bond that will mature in 9 years. The bond pays…
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…
Q: An 8-year bond for Rusk Corporation has a market price of $700 and a par value of $1,000. If the…
A: In this question we need to calculate the yield to maturity of bond. We can calculate yield to…
Q: The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5…
A: Given Information, Face Value of the bond = $1000 Maturity = 5 years Coupon Rate = 8.7% Coupon…
Q: Two 25-year maturity mortgage-backed bonds are issued. The first bond has a par value of $10,000 and…
A: Bond is debt instrument which is used by organization to raise long term debt from public.…
Q: A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of…
A: Year of Bond =20 Annual payment =$70 Face Value =$1000
Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years…
A: YTM: Semiannual rate is 5.07476% Annual rate or YTM is 5.07476%*2 = 10.15%
Q: A $140,000 bond bearing interest at 7% payable annually is bought five years before maturity to…
A: Bond value is the discounted value of the expected cash flow the bond will generate till the…
Q: A 10-year bond with coupons at 5% convertible quarterly is redeemed at 1500. If the bond is…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: A $1,000, 9.50% semiannual bond is purchasedfor $1,010. If the bond is sold after three years andsix…
A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…
Q: The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…
A: Par value (FV) = $ 1000 Coupon rate = 6% Coupon amount (C) = 1000*0.06 = $ 60 Years to maturity = 14…
Q: A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount. The bond is now…
A: Please find the answer to the above question below:
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is * P1,560.00 P1,540.00 P1,440.00 O P1,442.31Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is? a. P1,560.00 b. P1,540.00 c. P1,440.00 d. 1,442.31A bond pays $50,000 per year and has a face value of $500,000 at theend of 8 years when it has to be redeemed. If its current discounted priceis $390,000, what true interest could be earned on the bond? Ans. (14.9%)
- A bond has a face value of 2,000 $ is redeemable in 8 years , and pays interest of 200 $ at the end of each of the 8 years. what should be the maximum purchase price in $ for this bond if MARR = 8 % per year ? Select one: O a. 2,230 O b. 1,850 O c. 2,000 O d. 1,670 O e. 1,487A 8-year bond with a face value of 1000 dollars earns interest at 9.9 percent convertible semiannually. If the bond sells for 1096.14 dollars to yield an investor 7.8 percent convertible semiannually, what is the redemption value? Answer = dollars.A one-year bond currently pays 6% interest. It's expected that it will pay 11.0% next year and 10% the following year. The two-year term premium is 0.4% while the three-year term premium is 0.7%. What is the interest rate on a three-year bond according to the liquidity premium theory? Select one: a. 10.1% b. 9.70A O c.9.0% O d. 9.40%
- For a one year bond of $2,300 at a simple interest rate of 10% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is s (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)Assume that a 5-year bond pays interest of $110 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12 percent. Given this information, determine the duration of this bond. Answer truncated to 2 decimal places. For example, if your answer is 3.267, enter "3.26".Use the following tables to calculate the present value of a $25,000, 7%, 5-year bond that pays $1,750 ($25,000 × 7%) interest annually, if the market rate of interest is 7%. Present Value of $1 at Compound Interest. Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75132 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55840 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 1 .95238 .94340 .93458 .90909 2 1.85941 1.83339 1.80802 1.73554 3 2.72325 2.67301 2.62432 2.48685 4 3.54595 3.46511 3.38721 3.16987 5 4.32948 4.21236 4.10020 3.79079 6 5.07569 4.91732 4.76654 4.35526 7 5.78637 5.58238 5.38929 4.86842 8 6.46321 6.20979 5.97130 5.33493 9 7.10782 6.80169 6.51523 5.75902…
- 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.Assume that a 5-year bond pays interest of $90 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 10 percent. Given this information, determine the duration of this bond. Enter your answer in decimal format, truncated to 2 decimal places. For example, if your answer is 7.1186 years, enter "7.11".A 3-year bond with 10% compound rate and P1000 face value yields 8%. Assuming annual compounding payment, calculate the price of the bond. Use 5 decimal places in your computation. Answer Format: 1,111.11