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- A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed at par at the end of this period. It is sold at P1,030. Determine the yield at this price. Manual solutionA 7,000, 5% bond with annual coupons, redeemable at 108 at the end of 5 years is priced to yield 4%, m=1. Construct a table showing the amortization of premium. (Amortization of Premium)A $1000, 5% bond with annual coupons will be redeemed at the end of 9 years. Find the price to yield (a) 4%; (b) 5%; (c)6%.
- A P1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for P1,390, determine the yield at this price.A $10, 000, 5% bond with semiannual coupons is pried to yield 7%. Find the price if the bond is redeemable at par at the end of (a) 10 years; (b) 15 years; (c) 20 years.How much will the coupon payments be of a 15-year $500 bond with a 9% coupon rate and quarterly payments? A) $11.25 B) $45.00 C) $22.50 D) $3.75
- A 9,000 3 ½% bond with monthly coupon is priced to yield 5% and redeemable at par at the end of 10 years. Find the purchase price and bond discount. (Accumulation of Discount)How much will the coupon payments be of a 20 -year $500 bond with a 10% coupon rate and quarterly payments? A. $12.50 B. $4.17 C. $25.00 D. $50.00Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline
- Emma bonds will mature in eight years; the coupon rate of the bond is 6% paid semiannually. If the appropriate discount rate is 4%, what is the value of the bond? O a. $1073.25 O b. $1135.78 O. $1543.11 O d. $1293.020. A 9,000 3 ½% bond with monthly coupon is priced to yield 5% and redeemable at par atthe end of 10 years. Find the purchase price and bond discount. (Accumulation of DiscountYou buy an 8-year, 3.30% annual - payment coupon bond priced to yield 5.30 %. You sell the bond at year - end, immediately after receiving the first coupon payment. Assuming the YTM stayed constant over the holding period, what are your capital gains from the sale of the bond? A. -0.09 B. -0.02 C. 0.02 D. 0.09