Chapter 11, E5B Face value of 30-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 8% (from Table 1*): Face value x Face value = Face value = Face value of 50-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 8% (from Table 1"): Face value x Face value Face value = Face value of 30-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 6% (from Table 1*): Face value x Face value = Face value = Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1*): Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1*): Face value x Face value = Face value = *From the appendix on present value tables.

Chapter 11, E5B Face value of 30-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 8% (from Table 1): Face value x Face value = Face value = Face value of 50-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 8% (from Table 1"): Face value x Face value Face value = Face value of 30-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 6% (from Table 1): Face value x Face value = Face value = Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1): Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1): Face value x Face value = Face value = *From the appendix on present value tables.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 16E

See similar textbooks

Similar questions

1.Using annual compounding, find the prices of the following bonds with $1,000 par value: a. A 12%, 20 year bond priced at 10%
Compute the selling price of 10%, 10-year bonds with a par value of $210,000 and semiannual interest payments. The annual market rate for these bonds is 12%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Table B.1* Present Value of 1p = 1 / (1 + i)n Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 1 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 2 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6575 3 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 0.5718 4 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 5 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4323 6 7 0.9327 0.8706 0.8131 0.7599…
1.Using annual compounding, find the prices of the following bonds with $1,000 par value: a. A 10.5%, 15 year bond priced to yield 8%
4b. The semiannual, 8-year bonds of Alto Music are selling at par and have an effectiveannual yield of 8.6285 percent. What is the amount of each interest payment if the face value ofthe bonds is $1,000?
What is the present value of a 200,000 (face value) bond issued at coupon rate 10%, due in 3 years, interest payable semi-annually? Assume the effective market interest rate is 12%. A. 200,000 B. 140,992 C. 190,165 D. 49,173
2. A 20-year, 10% quarterly-pay bond has a par value of $1,000. What would this bond be? trading for if it were being priced to yield 15% as an annual rate? A. $665.14. B. $684.20 C. $694.39.
What is the present value of the principal amount (face value) based on the following example. 10% five-year bond, par 100, with an 11% discount rate. A $4.74 B $58.54 C) $94.79 D $61.76
1.Using semiannual compounding, find the prices of the following bonds with $1,000 par value:| a. A 7%, 10 year bond priced to yield 8%
B. Complete the information below using Bonds. Redemption Value (F) Conversion per year (m) Bimonthly Coupon Payments (k) Bond Rate (r) 11. 18% P7.50 P680 Quarterly 11% 12. P900 Quarterly 12.8% 13. P1,300 Bimonthly 12% 14. 15. Annually 15% P105.00
Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%. What is the market price?
A $1,000, 5%, 20-year annual-pay bond has a yield-to-maturity (YTM) of 6.5%. if the YTM remains unchanged, how much will the bond value increase over the next three years? A. $13.44 B. $13.62 C. $13.78 D. $13.96
7. Bond Valuation: Semiannual Interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. Bond Par Value Coupon Years to Maturity A $1000 10% B $800 12% C $1000 14% D $1000 8% 13 15 14 11 Required Annual Return 8% 11% 12% 10%