Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the selling price
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Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the selling price
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- Mr. Arturo bought a bond having a face value of Php3500 for Php3300. The bond rate was 16% nominal and interest payments were made to him semiannually for a total of seven years. At the end of the 7th year, he sold the bond to a friend at a price that resulted a yield of 20% nominal on his investment what was the selling price?Jean Miller purchased a $1,000 corporate bond for $888. The bond paid 3.8 percent annual interest. Three years later, she sold the bond for $968. Calculate the total return for Ms. Miller’s bond investment.Mr. Weber purchases a $4000 bond, that pays interest at 12-5% and is redeemable at 95 in 12 years. He bought the bond at a price to yield j13-10.25% it held until maturity. After 6 years, he sells the bond to another investor who will yield 2-10.05% if held until maturity. Approximate Mr. Weber's yield on his investment over the 6-year period, using method of averages? Answer
- Mr. Estrada purchased 100 5% bonds from Lontok Finance Corporation. Each bond has a face value of P 3,000 and were purchased at P 2,500. The bonds mature in 10 years. a. How much will Mr. Estrada receive as his dividend for all the bonds if dividends are paid semi-annually? b. Compute for its maturity value. The maturity valuei c. After the maturity date, how much is the total earnings of Mr. Estrada?Leann just sold a $10,000 par value bond for $9,800. The bond interest rate was 5.5% per year payable quarterly. Leann owned the bond for 3 years. The 1st interest payment she received was 3 months after she bought the bond. She sold it immediately after receiving her 12th interest payment. Leann's yield on the bond was 12% per year compounded quarterly. Determine the price she paid when she purchased the bond. $_____Carry all interim calculations to 5 decimal places and thern rourd your firnal answer to the nearest dollar. The tolerance is +,- 5.James purchased a bond for $3380 that had a rate compounded annually, 2 years later he sold it for $3700. What interest rate, compounded annually, did James earn on this investment? 4.32% 4.73% 4.63% 0.96%
- Janice V. bought a 5% $1000 twenty-year bond for $925. She received a semiannual dividend for 8 years, then sold it immediately after the 16th dividend for $800. What rate of return did she make (a) per semiannual period, and (b) per year (nominal)?Albert purchased a bond with exactly 20 years to redemption. The bond pays annual coupons, in arrears, of 5% per annum and is redeemed at par. Albert, who is not liable to pay tax, will obtain a gross redemption yield of 6% per annum if he holds the bond utill redemption. (a) Calculate the purchase price Albert paid for the bond, per $100 nominal if his intention was to hold the bond utill redemption. (b) After exactly ten years, immediately after receiving payment of the coupon then due, Albert sells the bond to Vicky who is liable to pay income tax and capital gains tax at a rate of 30%. The bond is purchased by Vicky to provide a net rate of return of 6.5% per annum. (i) Calculate the price Vicky paid for the bond, per $100 nominal. (ii) Using trial-and-error followed by linear interpolation, calculate the annual effective rate of return, correct to 4 decimal places, earned by Albert during the period for which he held the bond.Jamal bought a 5% $1000 20-year bond for $925. He received a semiannual dividend for 8 years, then sold it immediately after the 16th dividend for $800. Did Jamal make the return of 5% per year compounded semiannually that he wanted? Solve using (a) factors, and (b) a spreadsheet.
- You purchased 25 corporate bonds for $985.00 each and held them for one year, at which point you sold the bonds for $965.30 each. During the year you received interest payments of $79.80 per bond. Calculate the current yield on the bonds for the year during which you owned them. Report the percentage to 2 decimal places You purchased 25 corporate bonds for $985.00 each and held them for one year, at which point you sold the bonds for $965.30 each. During the year you received interest payments of $79.80 per bond. Calculate the capital gains yield on the bonds for the year during which you owned them.Emily purchased a bond valued at $10,000 for highway construction for $4,540. If the bond pays 7.9% annual interest compounded monthly, how long must she hold it until it reaches its full face value?Denis purchased a $10,000 face value Ontario Hydro Energy bond maturing in four years. The coupon rate was 6.8% payable semiannually. If the prevalling market rate at the time of purchase was 6.1% compounded semiannually, what price did Denis pay for the bond? (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Assume that: • Bond interest is paid semiannually. . The bond was originally issued at its face value. • Bonds are redeemed at their face value at maturity. • Market rates of return are compounded semiannually. Coupon Payment Bond price