Determine the price of a $510,000 bond issue under each of the follow Note: Use tables, Excel, or a financial calculator. Round your interme PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. 2 3 Maturity 10 years 10 years 20 years Interest Paid any semiannually semiannually Stated Rate 10% 10% 12% Effective Rate 12% 12% 10% independent assumptions: and final answer to the nearest whole dollar. (EV of $1. Price
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- Calculate the annual interest that you will receive on the described bond. A $ 1000 Treasury bond with a current yield of 3.99% that is quoted at 105 points Question content area bottom Part 1 The annual interest is $ enter your response here. (Round to the nearest cent as needed.))Give typing answer with explanation and conclusion 1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond? a)2% b)4% c)6% d)One cannot tell.Find the purchase price of each bond bought on the given dividend date. Accomplish this task at the back of this page or on another sheet of paper. Interest Yield Соupon Dates Annually Annually Annually Annually Maturity Date 5 years 5 years 5 years 5 years Face Value Rate Rate P 1, 000 P1, 000 P 1, 000 P1, 000 5. P1, 000, 000 1. 3% 5% 5% 6% 2. 3. 5% 3% 4. 6% 5% 7.5% 5.5% Annually 10 years 6. P 800, 000 4.5% 6% Semi-annually 6 years 7. P 600, 000 4% 6.5% Quarterly 36 months 8. P1, 200, 000 3.5% 6.5% Annually 36 months 9. P1, 200, 000 Semi-annually 36 months 3.5% 6.5% 10. P 1, 200, 000 3.5% 6.5% Quarterly 36 months
- Please use finance calculator An issue of bonds with par of $1,000 matures in 8 years and pays 9% p.a. interestsemi-annually. The market price of the bonds is $955 and your required rate of returnis 8%.(a) Calculate the bonds expected rate of return.(b) Calculate the value of the bond to you, given your required rate of return.(c) Should you purchase the bond? (State the reason for your decision.)The question that says “a $4000, 6% bond is sold at 93. When the bond is issued, the cash account will be increased by: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 Answer
- a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it be if there were only 9 or 8 years to maturity? Use the worksheet to compute the bond issue prices and enter them in the spaces provided. Bond issue price (9 years to maturity) __________________ Bond issue price (8 years to maturity) __________________ b. Compare these prices to the bond-carrying values found in the effective interest amortization schedule you originally printed out in requirement 3. Explain the similarity. c. Click the Chart sheet tab. The chart presented shows the price behavior of this bond based on years to maturity. Explain what effect years to maturity has on bond prices. Check your explanation by trying 8% as the effective rate (cell E10) and clicking the Chart sheet tab again. Also try 9%. When the assignment is complete, close the file without saving it again. Worksheet. Modify the BONDS3 worksheet to accommodate bonds with up to 20-year maturity. Use your new model to determine the issue price and amortization schedules of a 2,000,000, 18-year, 10% bond issued to yield 9%. Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as BONDST. Hint: Expand both amortization schedules to 20 years. Expand the scratch pad to 20 years. Modify FORMULA1 in cell F17 to include the new ranges. Chart. Using the BONDS3 file, prepare a line chart that plots annual interest expense over the 10-year life of this bond under both the straight-line and effective interest methods. No Chart Data Table is needed. Put A23 to A32 in the Label format and then select A23 to A32, D23 to D32, and B40 to B49 as a collection. Enter all appropriate titles, legends, formats, and so forth. Enter your name somewhere on the chart. Save the file again as BONDS3. Print the chart.Calculate the value of each bond and discuss whether it sells at par, discount, or premium. (Annual interest rate) O A. Bond Bond Value A B C O B. Bond A B C O C. Bond A B с O D. Bond A B C $1,149.39 Discount $1,000.00 Par $85.60 Premium Bond Value Sells at par/discount/premium Bond Value $1,149.39 Premium $1,000.00 Par $85.60 Discount Sells at par/discount/premium Bond Value Sells at par/discount/premium $1,149.39 Premium $1,000.00 Par $85.60 Premium Sells at par/discount/premium $1,049.39 Premium $1,100.00 Premium $85.60 Discount Bond Par value Coupon interest Years to rate maturity JA B IC $1000 14% $1000 18% $100 10% 120 16 18 Required return 12% 8% 13%Calculate the total annual interest, total cost, and current yield for the bond. (Round the "Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.) Number of bonds Total annual Bond Selling price Total cost Current yield purchased interest Wang 6 1/2% 26 4. 68.125 % 96 Prev 9 of 18 Next > M
- Determine the price of a $220,000 bond issue under each of the following independent assumptions: Note: Use tables, Excel, or a financial calculator. Round your Intermediate calculations and final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Face value Maturity 1. 220,000 10 years Interest Paid annually Stated Rate Effective Rate Price 11% 11% 2. 220,000 10 years semiannually 11% 12% 3. 220,000 20 years semiannually 12% 12%Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 20. The timeline shows a cash flow of $ 20.72 each from Period 1 to Period 19. In Period 20, the cash flow is $ 20.72 plus $ 1,000. Period0121920 Cash Flows$20.72$20.72$20.72$20.72+$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value?Revise your worksheet assumptions as indicated below and then answer the questions that folllow: Face amount Stated rate Number of years Market rate Ⓒ Discount O Premium Required: 1. Was the bond issued at a discount or a premium? Date $3,050,000 2. Complete the first four rows of the amortization schedule. (Round your answers to 2 decimal places.) June 30, 2021 December 31, 2021 June 30, 2022 December 31, 2022 8% 10 9% Cash Paid Interest Change in Carrying Expense Value Carrying Value