Ivan plans to invest on bonds with P 6,000,000 face value on January 1, 2023. The bond has life of 4 years starting January 1, 2023 and pays an interest of 7% semi-annually every June 30 and December 31. The bonds' effective interest rate is 9%. Required: Compute for the following: 1. Expected market Price of the bond 2. Amount of premium or discount of the bond

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

You have decided to invest in Corporate bonds. Your first bond investment (on Jan 2, 2021) is par value $1,000 DEF corporation bond, with a remaining maturity of 5 years,  interest is paid semi-annual,  the coupon rate is 4% (annual rate) and the effective market interest is 3% (annual rate). Calculate the amount you paid for the DEF bond on January 2, 2021  Calculate the amount of interest you will receive each year from the invest. How much cash will you receive at maturity for the bond?

A 4% semi-annual govt bond is maturing March 10, 2024. Accrued interest on this bond uses the 30/360 day-count convention. The coupon payments are made on 10 March and 10 Sept of each year. The bond is to be priced for settlement on 25 April 2019. Yield = 6% (Assume Par value of 100). Compute Full Price?

A $10 000 bond with 5% interest payable quarterly, redeemable at par on November 15, 2034, was bought on July 2, 2018, to yield 9% compounded quarterly. If the bond sells at 92.75 on September 10, 2024, what would the gain or loss on the sale be? Show manual working.

a. An 8 ½%, 25-year, $1,000 bond is presently selling at a yield-to-maturity (YTM) of 9 4%. Assuming annual interest payments, what should you pay for the bond? b. What should you pay if interest is paid semiannually? c. Instead of a 25-year bond, they decide to issue 15-year bonds with annual payments. What should you pay for this bond if the YTM is 9 4%? Explain the differences in prices changes for (3a) and (3c) in terms of maturity. d. You buy an 8%, 15-year, $1,000 bond that pays interest annually when it is selling with a YTM of 7%. Immediately after you buy the bond, the YTM increases to 9%. What was the percentage change in the price of the bond? A bond has a market price that exceeds its face value. What type of bond is this? Describe the relationship between the coupon rate and the YTM. е.

2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March 1, 2023, is $990. The last coupon payment was made on March 1, 2019. If you buy the bond on July 1, 2019, what is the total price you must pay for the bond?