A P10 000.00, 5-year, 10% bond is offered with a discount of P250.00. If the bond pays interest quarterly, find a) the current yield; (Ans. 10.26%) b) the yield to maturity. (Ans. 11.07%)

Q: what is the bond’s yield to call? Interest is paid semiannually.

A: Yield to call is the return received by the holder of the bond that held until maturity. It is a…

Q: August and 15 February. The yield-to-maturity on this Laccrued interest for settlement day on…

A: Full price of bond does not include accrued interest and flat price can be calculated after…

Q: A 15-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of…

A: Bonds are a form of investment that provides two categories of returns namely periodical coupon…

Q: A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded…

A: Par value (FV) = $30,000 Coupon rate  = 3% Quarterly coupon amount (C) = 30,000*0.03/4 = $225 Years…

Q: A three-year bond has an 8 percent coupon rate and a $1,000 face value. If the yield to maturity on…

A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…

Q: 1000 par value bond with a term of 5years and a coupon rate of 6% payable semiannually is purchased…

A: Price of bond is the present value of coupon payment plus present value of the par value of the bond…

Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…

A: To calculate the bond price we will use below formula   Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…

Q: A bond currently has a price of $890. The yield on the bond is 6%. If the yield increases 25 basis…

A: It is given that if yield increase by 0.25% the prices of bonds go down to $870 Computation of % of…

Q: Given the following information, what is the coupon rate of the bond? Years to maturity: 12 Par…

A: Compound = n = Semiannually = 2Time = t = 12 * 2 = 24Face Value = fv = $1000Interest rate = r = 10 /…

Q: 1. A bond maturing in 10 years pays annual coupon payment $80 each year and $1,000 upon maturity.…

A: Solution:- Present value of bond means the current price of bond at which it is trading in the…

Q: Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly…

A: Par value (FV) = $ 1000 Coupon rate = 4.45% Semi annual coupon amount (C) = 1000*0.0445/2 = $ 22.25…

Q: 13-year bond with a face value of $5000 is redeemable at par and earns interest at j-9%. If the…

A: Bonds are a kind of loan in which interest is paid each period and the par value of the bond is paid…

Q: A 17-year bond pays interest of $45 every six months and will mature for $1,000. Also assume that…

A: Bonds are debt instruments issued by entities.  Bonds pay regular interests in the form of coupons.

Q: Determine the purchase price at the indicated time before maturity of the following bond redeemed at…

A: Bond price is basically the discounted present value of future cash flow that  the bond will…

Q: Calculate DV01 for a £1 million (nominal) 5% annual bond with three years remaining life that is…

A: DV01 measures the change in price of the bond by a single basis change in yield. It is used to…

Q: The face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling…

A: Given: Coupon rate = 8.5% Face value = $1,000 Years =5 Current price = $943.15 Yield to maturity =…

Q: Which of the following bonds is trading at a premium? a two-year bond with a $50,000 face value…

A: a) 1) If coupon rate is greater than Yield to maturity, then bond is trading at Premium 2) If coupon…

Q: A 10,000 bond wit interest at 6% payable quarterly is bought to yield 4 ½% converted quarterly. On a…

A: Face value of bonds  10,000.00 Carrying value of bonds  11,000.00 Cash interest Payable (10,000…

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: A 20-year bond has a face amount of $1000 and 8% quarterly coupons. The redemption value is $1050…

A: " Since you asked multiple sub-parts questions, we will answer the first three sub-parts for you as…

Q: Q10. Consider a discount bond with a principal payment of $1,000, a price of $900, and a YTM of E. 5…

A: Face value (FV) = $1000 Price (PV) = $900 YTM (r) = 5.4093%

Q: You have the following information regarding an annual bond. What is the modified duration of this…

A: Modified duration of a bond shows the change in the value of the security as the value of the…

Q: Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to…

A: Duration used to measure the sensitivity of a bond's price to changes in interest rates. It…

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: Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly…

A: Par value (FV) = $ 1000 Coupon rate = 4.975% Semi annual coupon amount (C) = 1000*0.04975/2 = $…

Q: 9,000 3 ½% bond with monthly coupon is priced to yield 5% and redeemable at par at the end of 10…

A: The given problem can be solved using PV function in excel. PV function computes current price  for…

Q: Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and…

A: We are given the following data :Years to maturity : 12 Coupon rate : 10%Yield to maturity : 12%Par…

Q: A ten-year USD100 par value bond pays 8% coupons semiannually. The bond is priced at USD118.20 to…

A: Bond value is the current price or the present value of the bond. This can be determined by…

Q: A bond with a face value of $10,000 pays $600 in interest annually and matures in 1 year. The bond…

A: A bond is a fixed-income security that allows the investor to receive periodic coupon payments…

Q: A 30-year bond that pays annual coupons is purchased at a discount. The accumulation of discount in…

A: Current value of bond:The current value of a bond represents the present worth of all future cash…

Q: A bond has a face value of $30,000 and matures after 8 years. Five offers were submitted for the…

A: Given information :

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%

Q: The market price is ​$1,100 for a 13-year bond ​($1,000 par​ value) that pays 11 percent annual​…

A: A bond is a kind of debt security issued by the government and private companies to the public for…

Q: Calculate the annual interest that you will receive on the described bond. A $500 Treasury bond with…

A: A treasury bond is a kind of debt security issued by the government and private companies for…

Q: What is the current market price of the bond?

A: Bond valuation is the method of finding the fair value of the bond. Fair value of the bond is…

Q: A bond with 6 years left to maturity is trading for $975.  It pays coupons semiannually.  Its YTM is…

A: Face Value (FV) of the bond = $1000 Bond price (PV) = $975 Number of years to maturity =6 Number of…

Q: he market price is ​$725 for a 9​-year bond ​($1,000 par​ value) that pays 12 percent annual​…

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

Q: Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays…

A: Formula: Present value of the bonds=Present value of the face value of the bonds+Present value of…