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- Union Local School District has bonds outstanding with a coupon rate of 2.9 percent paid semiannually and 24 years to maturity. The yield to maturity on these bonds is 2.5 percent and the bonds have a par value of $10,000. What is the dollar price of the bonds? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Union Local School District has bonds outstanding with a coupon rate of 2.8 percent paid semiannually and 25 years to maturity. The yield to maturity on these bonds is 3.3 percent and the bonds have a par value of $5,000. What is the dollar price of the bonds? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. PriceThe Wildhorse Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.375 percent. The current market rate for similar securities is 10.50 percent. Assume that the face value of the bond is $1.000. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 8.29 a-d (Excel Video)(a) What is the current market value of one of these bonds? (Round answer to 2 decimal places, eg. 15.25) Current market value
- The Pharoah Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.425 percent. The current market rate for similar securities is 10.30 percent. Assume that the face value of the bond is $1,000. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 8.29 a-d (Excel Video)(a) ✓ Your answer is correct. What is the current market value of one of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Current market value $ eTextbook and Media Using multiple attempts will impact your score. 50% score reduction after attempt 2 Problem 8.29 a-d (Excel Video)(b) ✓ Your answer…The Pharoah Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.425 percent. The current market rate for similar securities is 10.30 percent. Assume that the face value of the bond is $1,000. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 8.29 a-d (Excel Video)(a) Your answer is incorrect. What is the current market value of one of these bonds? (Round answer to 2 decimal places, e.g. 15.25.) Current market value $Union Local School District has a bond outstanding with a coupon rate of 3.4 percent paid semiannually and 19 years to maturity. The yield to maturity on this bond is 3.6 percent, and the bond has a par value of $5,000. What is the price of the bond?
- Union Local School District has a bond outstanding with a coupon rate of 2.9 percent paid semiannually and 24 years to maturity. The yield to maturity on this bond is 2.5 percent, and the bond has a par value of $10,000. What is the dollar price of the bond?Saved iz G Union Local School District has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 21 years to maturity. The yield to maturity on these bonds is 3.5 percent and the bonds have a par value of $5,000. What is the price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) HR 4.778.24Maryland Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.81 percent. The current market rate for similar securities is 11.86 percent. a. What is the current market value of one of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) Current market value $ b. What will be the bond’s price if rates in the market (i) decrease to 9.86 percent or (ii) increase to 13.86 percent? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) (i) Decrease to 9.86 percent $ (ii) Increase to 13.86 percent $ c. How do the interest rate changes affect premium bonds and discount bonds?Bonds, in general, (decrease or increase) in price when interest rates go up. When interest rates decrease, bond prices (Decrease or increase). d. Suppose the bond were to mature in 12 years. What…
- An investor must choose between two bonds: Bond A pays $102 annual interest and has a market value of $890. It has 10 years to maturity. Bond B pays $88 annual interest and has a market value of $800. It has five years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) b. Which bond should she select based on your answers to part a? multiple choice 1 Bond A Bond B c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond A is 12.10 percent. What is the approximate yield to maturity on Bond B? The exact yield to maturity? (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as…Union Local School District has bonds outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the dollar price of the bond?(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 8 years until maturity. You can purchase the bond for $1.115. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?
