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Four years after the issue of a $10,000, 8.6% coupon, 20-year bond, the
b. What
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Give typing answer with explanation and conclusion Four years after the issue of a $10,000, 8.9% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 7.2% compounded semiannually. b. What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital (Click to select) of $Four years after the issue of a $10,000, 9.8% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 8.2% compounded semiannually. b. What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital (Click to select) of $
- Four years after the issue of a $10,000, 8.1% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 6.4% compounded semiannually. b. What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital (Click to select) gain loss of $3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)Four years after the issue of a $10,000, 8.9% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 7.2% compounded semiannually.What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond?
- Three years ago, Petty Partners Inc. issued 15-year, $1,000 bonds that are currently priced at $911.37. If the prevailing rate of return on similar investments is 5%, what is the annual interest payment of Petty Partners bonds ? Please answer fast i give you upvote.Assume that three years ago, you purchased a corporate bond that pays 6.50 percent. The face value of the bond was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 7.00 percent. (a) What is the annual dollar amount of interest that you receive from your bond investment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual interest (b) Assuming that comparable bonds are paying 7.00 percent, what is the approximate dollar price for which you could sell your bond? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Approximate bond priceLast year, Kevin Thomas purchased a $1000 Campbell Manufacturing corporate bond with an annual interest rate of 7.25%. The bond's current market price is $770. Calculate the following. If necessary, round all answers to two decimal places. If necessary, refer to the list of financial formulas. 1. Annual interest: 2. Current yield: $0 0% X S
- An investor purchased a 5%, $1000 30-year bond for $850 with 22 years to maturity. The interest was payable quarterly. The bond was kept for only 9 years and sold for $950 immediately after the 36th interest payment was received. What nominal and effective rates of return per year were made on this investment?What would you pay for a $110,000 debenture bond that matures in 15 years and pays $5,500 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 0 decimal places, e.g. 458,581.A) You invest OMR 900 in a bond which gives 9% interest over a period of 2 years, the compounding is done quarterly. How much will be the value of the investment? Select one: a. 1053.24 b. 1254.74 c. 1075.34 d. 753.24 B) Which of the statements are not correct Select one: a. Profits refers to earnings before Interest and Taxes b. Investment decisions relate to pattern of financing c. Dividend pay out ratio refers to what proportion is paid to shareholders d. Borrowed funds are relatively cheaper than shareholders’ funds
