Answered: Face Value of Bond: 1,000 Annual Coupon…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting Consider a bond with semiannual coupon payments of $50 and a principal payment of $1,000 in 10 years. Assume a flat yield curve with an 7% vied to maturity: If the yield curve remains unchanged, what is the bond's duration in 9 years? A. 1.00 year B. 1.014 year C. 0.995 year D. 0.983 year E. 0.977 year For a 8-year discount bond with a face value of $1.000. if the interest rate changes from 8% to 12%, what's the new price of the bond using Duration with Convexity? A. $404.87 B. 405.87 C. 406.87 D. 407.87 E. 408.87
Find the value of the following two corporate bonds then discuss how the value of the bonds change when time maturity changes
Q.A $35,000, 5% bond that matures in 10 years has interest payable semiannually. If the quoted price is $36,500, what is the yield rate? Cannot use Excel or a financial calculator. Please show step by step work.
Bond valuation-Annual interest Calculate the value of the bond shown in the following table, assuming it pays interest annually. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Par value Coupon interest rate Years to maturity Required return $100 12% 7 8% The value of the bond is $ (Round to the nearest cent.)
31 ation An 8%, 8-year bond pays annual coupons and has 6 years to maturity. If the market interest rate is 9%, calculate the price of this bond. Show the (abbreviated) time line, the key entries/steps of FCS, and the (abbreviated) equation/expression of NS. Typing tips:
4) A 10 year bond with $50, 000 face value has semiannual coupon rate 4% and semiannual yield rate 2%. Fill out the following amortization table. Principle Outstanding t Payment Interest герaid Balance 1 2 3 12
Question :- B Full explain this question and text typing work only
Face value=$1000 Annual coupon payment=$60 (First payment due in 1 year) Internal yield to maturity = 7% Term= 3 years Compute the Macaulay duration of the bond.
What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an annual interest rate of 5%? It can be calculated using the below formula, Macaulay Duration Formula t-C n-M + (1+y) (1+y) с Current Bond Price Macaulay Duration tx C + Macaulay = Duration Formula (1+ y) nxM (1+ y)n Current Bond Price 13
What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond Coupon Rate Yield Price t City of Somerville ? 5.6% $990.90 9 Wh
Directions: Solve what is asked in the following items. Show your solutions. LA Find the coupon interest payment. FACE VALUE INTEREST RATE COUPON DATES COUPON INTEREST PΑΥΜΕNT 1. Р50,000.00 5.5% Annually 2. P125,000.00 3% Semi-annually

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Face Value of Bond: 1,000 Annual Coupon Rate: 5% Required Return: 8% Years to Maturity: Payment Frequency: semiannually I need help to find the present value of bond using excel