Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- harrow_forwardConsider a $100 face value 10-year bond with 8% semiannual coupons, and redemption value$120. The yield rate convertible semiannually is 6%, and the first coupon is paid on July 1st, 2018. Findthe price on November 15th, 2021.arrow_forwardOn January 1, 2021, Jackie Company issued 2,000 P5,000 8% five-year bonds at 90.35 when the market rate is 11%. Interest is payable every January 1 and July 1 starting 2021. 1. How much is the discount amortization during 2024?2. How much is the unamortized discount as of July 1, 2025?arrow_forward
- Q) A $20,000, 10% bond with semi-annual coupons redeemable at par March 1, 2021, was purchased on November 15, 2014, to yield 9% compounded semi-annually. What was the purchase price of the bond? Solve it earlyarrow_forwardUse the following tables to calculate the present value of a $608,000 @ 6%, 6-year bond that pays $36,480 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 ¦ Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % ¦ Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 ¦ 1 .95238 .94340 .93458 .90909 2 .90703 .89000 .87344 .82645 ¦ 2 1.85941 1.83339 1.80802 1.73554 3 .86384 .83962 .81630 .75131 ¦ 3 2.72325 2.67301 2.62432 2.48685 4 .82270 .79209 .76290 .68301 ¦ 4 3.54595 3.46511 3.38721 3.16987 5 .78353 .74726 .71299 .62092 ¦ 5 4.32948 4.21236 4.10020 3.79079 6 .74622 .70496 .66634 .56447 ¦ 6 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 ¦ 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 ¦ 8 6.46321…arrow_forward6. A P10,000, 8% bond pays dividends semi- annually and will be redeemed at 110% on April 29, 2027. It is bought on April 29, 2021 to yield 6% compounded annually. Find the price when it was bought.arrow_forward
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- A bond that has a face value of $2,500 and coupon rate of 2.50% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 2.75% compounded semi-annually. $0.00 Round to the nearest centarrow_forward9. A $20,000, 10% bond with semi-annual coupons redeemable at par March 1, 2021, was purchased on November 15, 2014, to yield 9% compounded semi-annually. What was the purchase price of the bond? please use TI BAII calculatorarrow_forwardA $1,000.00, 8.0% Semi-Annual Bond matures on October 1, 2036. The Bond may be called at 102.5 on April 1, 2030. Round ALL final answers to the nearest penny (cent), NO dollar signs, USE commas where needed What is the Value of the bond on April 1, 2024, when the market rate is 7.0% if: The bond is held to maturity and redeemed at par? The bond is called on April 1, 2030 and redeemed at the call value?arrow_forward
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