A bond pays P342 interest per year and has face value of P9,806 at the end of 14 years, when it has to be redeemed. If the interest of the bond is 0.15. What is the current value of the bond?

Q: A bond promises to pay $1,000 20 years from today. No interest will be paid on the bonds during the…

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Q: A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable…

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A: A bond refers to an instrument issued by companies to raise debt capital from their investors. A…

Q: A five year bond pays interest $85 once a year and will mature for $1000. YTM is 10%. Determine the…

A: Macaulay Duration Formula: Macaulay Duration (MD) = (C1*t1 + C2*t2 + ... + Cn*tn) / (PV + FV) /…

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A: In this question we need to calculate the annual rate of return from the bond.

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A: In this question we require to calculate the fair value of perpetual bond.

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Q: bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to…

A: Given information :

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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.