A $1,000, 9.50% semiannual bond is purchasedfor $1,010. If the bond is sold after three years andsix interest payments, what should the selling pricebe to yield a 10% return on the investment?
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A $1,000, 9.50% semiannual bond is purchased
for $1,010. If the bond is sold after three years and
six interest payments, what should the selling price
be to yield a 10%
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- If a $ 3,000, 12% semiannual bond is purchased for $3,100 and sold 5 years later for $2,900. What was the quarterly yield on the investment?A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return is 4.00% compounded semiannually, what is the fair market value of the bond? Your Answer: AnswerA bond promises to pay the bondholder equal payments of P6,000 in six-month intervals for 30 years. If the face amount is P450,000, what is the fair price of the bond? Assume that the market rate is 2% compounded annually.
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- A 6.35 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,095.75. What is the yield to call of the bond? (Assume interest payments are semiannual.A bond certificate with a value of P 1,081,038.07 has a par value of P 1,000,000.00 and a redemption price of P 1,030,000.00 at the end of 10 years . If the bond rate is 9% . Calculate the yield that the investor obtained from his investment .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%