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…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…

A: Present value of the bonds will present value of annuity received at the end of every year for eight…

Q: when you initially purchased it? assuming the bond earned 3.97 percent annually, approximately how…

A: EEBonds are issued by government and these bonds are issued at half cost and will double in prices…

Q: The Bank of Jamaica offers to sell you a bond for $813.81. No payments will be made until the bond…

A: Bond: The bond is a debt obligation under which the borrower of the debt is obliged to pay the…

Q: You purchased a Tk.1,000 bond paying 10 percent semiannual interests two years ago. The bond has a…

A: Par value of bond=1000 Coupon payment =5% semiannual  Coupon payment =50 semiannual  Period of…

Q: A bond has a face value of $10,000 and matures on August 24 2030 with a bond rate of 3.1% compounded…

A: The purchase price of the bond can be calculated as the present value of coupon and principal…

Q: The face value of a bond is P 100,000 and currently and currently selling at P 134,996.00. The bond…

A: Face value (F) = P 100000 Bond price = P 134996 n = 11 years = 22 semiannual periods r = 4.03% per…

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: TI Company offers to sell you a bond for $651.60. No payments will be made until the bond matures…

A: Price (P) = $651.60 Maturity value (MV) = $1000 Period (n) = 8 Years

Q: A 11​-year bond pays interest of $28.60 ​semiannually, has a face value of $1,000​, and is selling…

A: Semi Annual Interest Time Period = 11 Years × 2 =22 semi annual periods Face Value = 1000 Price of…

Q: A bond has a face value of $1,000 with a maturity date 15 years from today. The bond pays…

A: The market value of a bond refers to the current price that an investor is willing to pay for the…

Q: For a two year bond of $2,200 at a simple interest rate of 10% per year, find the semiannual…

A: Bonds are debt instruments issued by companies. The issuing company pays coupons or interests to the…

Q: A Treasury bond that you own at the beginning of the year is worth $1,020. During the year, it pays…

A: Dollar return = Ending value + interest - beginning value Dollar return = $1,030 + 32 - $1,020…

Q: You own a bond that pays $73 in interest annually. The face value is $1,000 and the current market…

A: The Given set of data is Interest payment (C) annually is $73 The face value (F) is $1000 The…

Q: Rossiana Marie, Inc. lists a bond as Ross 9s34 and shows the price as selling for 88.875% of its…

A: Value of a bond refers to the right price of the bonds. The right price or intrinsic value helps in…

Q: se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays…

A: The present value of the bond is the future inflows from bonds discounted at the market rate of…

Q: A $1,000 par value bond has a current price of $913.09 and a maturity value of $1,000 and matures in…

A: Compound = Semiannually = 2Face Value = fv = $1000Current Price of Bond = pv = $913.09Time = t = 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 bond with a par value of PhP1,384 with a bond rate of 9% is to be redeemed at PhP1,189 at the end…

A: Par value = P 1384 Coupon rate = 9% Coupon amount = 1384*0.09 = P 124.56 Maturity price = P 1189…

Q: A 10-year bond carries a 8% coupon rate and pays interest semiannually. The market price of the bond…

A: The bonds are the securities issued by the companies to raise funds. The issuer may be a…

Q: A bond with a par value of PhP1,304 with a bond rate of 9% is to be redeemed at PhP1,250 at the end…

A: Par value = Ph 1304 Coupon rate = 9% Coupon amount (C) = 1304*0.09 = Ph 117.36 Maturity price (FV) =…

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

A: To calculate  the bond cost we will use the below formula   Bond cost today = FV/[1+(r/m)]n*m Where…

Q: What is the present worth of a $10000 bond that has an interest of 20% per year payable…

A: The bond is fixed-income security issued by the company to raise funds. The present worth of a bond…

Q: What is the amount of premium/discount for a bond that has 4 years till it matures? The face value…

A: The objective of this question is to calculate the amount of premium or discount for a bond that has…

Q: A two-year amortizing bond has a coupon rate of 4% and pays its coupons semiannually. Coupon…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The Saleemi​ Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…

A: Annual coupon interest payments = 6% of 1000 = 60 14 such coupons will be paid.

Q: A bond with 8 years left to maturity is trading for $1,019.  It pays coupons semiannually.  Its YTM…

A: The question is based on the concept valuation of bond with semiannual coupon payment, which can be…

Q: Quinn purchases a bond for $29,000 when the market interest rate is 13% per year, compounded…

A: Bond is a debt security that is issued by organizations to raise debt funds from investors in…

Q: The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years.…

A: A bond is a fixed-income security that pays regular fixed periodic payments to the bond holder and…

Q: The market price is $1,150 for a 9​-year bond ​($1,000 par​ value) that pays 12 percent annual​…

A: Bonds are debt instruments issued by companies. Yield to maturity is the total rate of return that…

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: 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: You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65 every 6 months. If…

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) /…

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: Suppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value…

A: Future value of bond (FV) = $ 2,155.40 Period (N) = 5 Years Interest rate (R) = 6%

Q: What is the present value of a 10-year bond outstanding with 8 years left in “year-to-maturity,” 6%…

A: A bond is a useful tool for finance concepts. Bond market values are used by analysts and investors…

Q: Find the fair value of a perpetual bond which pays $100 every year forever. The discount rate for…

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

Q: A $1,000 par value bond has a current price of $883.07 and a maturity value of $1,000 and matures in…

A: Bonds are debt instruments issued to raise capital by governments, municipalities, and companies.…

Q: A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable…

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

Q: A 8-year bond with a face value of 1000 dollars earns interest at 9.9 percent convertible…

A: Price of bond is the present value of par value of bond and present value of the redemption value…

Q: lease provide whole answer: A company has a bond outstanding. Bond A has a face value of $20,000…

A: The bond is a debt instrument that is issued by the organization to raise the funds from the bond…

Q: The British government has a consul bond outstanding paying £100 per year forever. Assume the…

A: Annual payment = £100 Annual interest rate = 4%

Q: What is the yield to maturity?

A: As no coupon payment is mentioned, this bond is assumed to be a zero coupon bond. A zero coupon bond…

Q: A bank issues a 5-year bond that pays 3-month Euribor plus 50 basis points on a quarterly basis. The…

A: Bonds are the debt instruments issued for short term period or for long term. The price of bond is…

Q: A bond with 9 years left to maturity is trading for $962.  It pays coupons semiannually.  Its YTM is…

A: Semi annual: Bond  Yields maturity = 9  Current stock = 962 YTM = 3.50%

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.