Assume that you purchase a $3,000 bond issued by Kohls that pays 6 percent interest each year, paid every 6 months. What is the amount of each interest payment? (Round your answer to 2 decimal places.) Multiple Choice $18.00 $90.00 $180.00 $9.00 $3,000.00
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Assume that you purchase a $3,000 bond issued by Kohls that pays 6 percent interest each year, paid every 6 months. What is the amount of each interest payment? (Round your answer to 2 decimal places.)
Multiple Choice
$18.00
$90.00
$180.00
$9.00
$3,000.00
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- How much would you be prepared to pay for a $1,000 bond which comes due in 8 years and pays $100 interest annually assuming your required rate of return is 12% (pick closest answer)? a. $901 b. $1,032 c. $1,007 d. $962You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? Select one: O a. $1,124.62 O b. $1,086.15 O c. $ 957.50 O d. $826.31 O e. $1,032.20Calculate the amount of simple interest payable if a person borrowed $25 500 at a simple interest rate of 12% over a three-year period. Select one: a. $9 000.00 b. $10 326.00 c. $9 180.00 d. $3 060.00
- eBook The interest rate on one-year Treasury bonds is 2.0 percent, the rate on two-year T-bonds is 1.9 percent, and the rate on three-year T-bonds is 1.8 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. _____ % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. _____ %Listen Assume that there is a bond that pays $20.00 at the and of year 2, and $105.00 at the end of year 7. It sells at a total =$(20.00+105.00). The Macauley duration of the bond is? Answer with two digits decimal accuracy. Blank Excel Worksheet Your AnswerAn investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond? A) $828. B) $893. C) $1,000. D) $1,686. *PV of $1 ordinary annuity is 17.15909: n = 40; i = 5% **PV of $1 is 0.14205: n = 40; i = 5% O A O B
- The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,155. 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 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65 every 6 months. If your nominal annual required rate of return is 11.6 percent with semiannual compounding, how much should you be willing to pay for this bond? $1,106.94 $1,076.94 $1,086.94 $1,096.94 $1,066.94Two types of bonds are offered to you for bond investment considerations: P10,000, 5-year, 10% p.a. Debenture bond issued by Yoo Hoo corp. The interest payable twice a year. The bond has four years remaining term and is offered to you at 98-1/2. P5,000, 10-year, 10% p.a. Mortgage bond issued by Khoo Coo, Inc. Interest is paid annually. The bond still has 7 years remaining life before its maturity. It is offered to you by a friend at 101-3/4. It has been your policy that your desired rate of return for unsecured investment should be 12% p.a, and for secured investment will earn a minimum of 8% p.a. 1. Based on the above information, compute the exact yield to maturity (YTM) of the two bonds offered. 2. Which bond you wish to invest? Explain thoroughly why.
- You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice AWhat would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to pay tA $Two types of bonds are offered to you for bond investment considerations: P10,000, 5-year, 10% p.a. Debenture bond issued by Yoo Hoo corp. The interest payable twice a year. The bond has four years remaining term and is offered to you at 98-1/2. P5,000, 10-year, 10% p.a. Mortgage bond issued by Khoo Coo, Inc. Interest is paid annually. The bond still has 7 years remaining life before its maturity. It is offered to you by a friend at 101-3/4. It has been your policy that your desired rate of return for unsecured investment should be 12% p.a, and for secured investment will earn a minimum of 8% p.a. Based on the above information, compute the value of the bond for the two types of bonds offered.