A $1000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2026, was purchased on September 19, 2017, to yield 7% compounded semi-annually. What was the purchase price? The purchase price was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

A $1000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2026, was purchased on September 19, 2017, to yield 7% compounded semi-annually. What was the purchase price? The purchase price was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2021, Concord Corp. issued five-year bonds with a face value of $370.000 and a coupon interest rate of 6%, with interest payable semi-annually. Record the proceeds from the sale of the bonds if the market interest rate was 7%. See below for present value tables. (Do not use & signs or commas in your answer. Do not round intermediary calculations. Only round final answers to 2 decimal places ex: 5.25) TABLE Present Value of $1 PV (n) Periods TABLE 2 8 9 1 1 2 9T5 VO 5 6 Present Value of an Annuity of $1 PV (n) Periods 1% 1 (1 + i)" 2% 2.5% 3-5% 4% 4-5% 7% 8% 9% 10% 1.5% 3% 6% 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856…
On January 1, 2020, MMM Inc. issues $100,000 face value, 8% semiannual coupon bonds maturing in 10 years for $114,878. The bonds pay interest on June 30 and December 31 of each year. The market initially prices these bonds to yield 6% compounded semiannually. How much interest expense will MMM Inc. report on its income statement for the year ending December 31, 2020? Select one: a. $8,000 b. $7,429 c. $6,876 d. $6,893 e. $4,573
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 yeild 6% compounded annually. Find the price when it was bought
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 early
On April 1, 2014, Fredriksen Corp. sold a $700 million bond issue to finance the purchase of a new distribution facility. These bonds were issued in $1,000 denominations with a maturity date of April 1, 2034. The bonds have a coupon rate of 8.00% with interest paid semiannually. Required: a) Determine the value today April 1, 2024 of one of these bonds to an investor who requires a 12 percent return on these bonds. Why is the value today different from the par value? b) Assume that the bonds are selling for $925.00. Determine the current yield and the yield-to-maturity. Explain what these terms mean. c) Explain what layers or textures of risk play a role in the determination of the required rate of return on Fredriksen's bonds.
Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Top of Form Multiple Choice $24.00 million. $12.00 million. $30.00 million. $15.00 million.
Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2025. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2025? Multiple Choice O $12.0 million $9.0 million $6.0 million $18.0 million
hardik
A 15000 Manulife Financial Corporation bond bearing interest at 5.66% payable semi-annually is redeemable at par on March 12,2028. The bond is sold on the primary market on January 5,2021, to yield 6.42% compounded semi-annually. a) Calculate the purchased price.(use Bond key) b) The accrued interest
A $10 000 bond with 5% interest payable quarterly, redeemable at par on November 15, 2034, was bought on July 2, 2018, to yield 9% compounded quarterly. If the bond sells at 92.75 on September 10, 2024, what would the gain or loss on the sale be? Show manual working.
A 12% P1,000,000 face value bond with interest payable June 30 and December 31, which matures on June 30, 2026, was purchased at 95 for short term investment purposes on June 30, 2021. At the end of December 31, 2021, the bonds were quoted at 110. By June 30, 2022, all the bonds were sold at 115. How much would be the total cash that would be received by June 30, 2022? 1,000,000 1,100,000 O 1,150,000 O 1,210,000

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