Preston Corporation has a bond outstanding with an annual interest payment of $80, a market price of $1,270, and a maturity date in 9 years. Assume the par value of the bond is $1,000. Find the following: Coupon rate Current rate Approximate yield to maturity Exact yeild to maturity

Q: A bond issued by a Company pays 5.25% coupon once a year. If the bond matures in 15 years, and…

A: There exists an inverse relationship between the bond prices and the yield to maturity. If the YTM…

Q: Whatever, Incorporated, has a bond outstanding with a coupon rate of 5.82 percent and semiannual…

A: The annual coupon rate is 5.82% and the payments are made semi-annually.The yield to maturity is…

Q: Compute the current yield of a(n) 10.5%, 20-year bond that is currently priced in the market at…

A: 1. Current yield on bond = 2. yield to maturity  = where,RV =redemption value NP = current pricen =…

Q: Company XYZ has a bond issue outstanding that pays an 7.25% coupon semiannually with a maturity of…

A: Yield to maturity is the rate of return that the bondholders will get if they invest in bonds and…

Q: Assume a company-issued bond with 4,000 OMR face value in the muscat security market with 0.154…

A: Given: Face value = 4,000 Coupon rate = 15.4% YTM = 8% Years = 12

Q: The Pioneer Petroleum Corporation has a bond outstanding with an $80 annual interest payment, a…

A: Annual coupon payment (C) = $ 80 Market price (P) = $ 900 Par value (F) = $ 1,000 Years to maturity…

Q: Consider a bond with a 7% annual coupon and a face value of $1,000. Complete the following table.…

A: A bond is a debt instrument that is used to raise capital from investors rather than traditional…

Q: The 6.5 percent bond of ABCO has a yield to maturity of 6.82 percent. The bond matures in seven…

A: Solution:Coupon payment means the amount of interest payments received by bond holders after each…

Q: Please show calculation with formula: Calculate the price of a 10-year bond with a face value of…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: Find the yield to maturity of a $1,000 par value bond with a coupon rate of 9% semi-annually and…

A: YTM is also known as Yield to Maturity. It is a capital budgeting technique which helps in decision…

Q: Reach for the Sky, Inc., has a bond outstanding with $1,000 par value, a coupon rate of 5.96 percent…

A: To provide required return to investors, issue price should be equal to the present value of coupon…

Q: Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal…

A: The price of a bond is equal to the sum of the present value of coupon payments and the present…

Q: following information, compute the rate of return earned on the bond if the bond was sold on the…

A: Bonds are paid periodic payment of coupon and par value of Bond is paid on maturity of Bond. Bonds…

Q: Compute the yield to maturity of a 3-year maturity 16% bond purchased at 970₺, whose nominal value…

A: Years to Maturity = 3 Coupon Rate = 16% Boond Purchased = 970 Nominal value  = 1000 Coupon Amount=…

Q: Compute the current yield of a(n) 11%, 20-year bond that is currently priced in the market at…

A: The current yield of the bond is calculated below

Q: a. Nestle has just issued a callable (at par) six-year, 7.5% coupon bond with annual coupon…

A: Face Value = 100 Callable at par hence  Call Price = 100 Market Value = 105 YTM = 6.47% Coupon = 7.5…

Q: The semi-annual bonds of Delta Company have a coupon rate of 6%, a Yield to Maturity of 8%, a par…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of…

A: The bond's price is present value of future coupons and par value receivable at maturity. bond pays…

Q: Blossom Corp is issuing a 10-year bond with a coupon rate of 13 percent. The interest rate for…

A: Bond valuation entails determining the present value of a bond's future cash flows, which include…

Q: Analyze the 20-year, 8% coupon rate (semi-annual payment), $1,000 par value bond. The bond currently…

A: Here, Given information Time Period =20 years  Semi -annual coupon rate = 8%/2= 4%(As period is semi…

Q: ,000. What is the bond's YTM (Yield to Maturity) and it Current Yield? use excel format

A: Yield to Maturity Formula of a bond refers to the total return which is anticipated on the bond in…

Q: Suppose a firm is issuing 10,000 bonds. Each bond has a face amount of $950, a stated rate of 7.5%,…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: Suppose that Tesla Motors issued a bond with 17 years until maturity and a face value of $100, and a…

A: Time to maturity = 17 yearsface value = $100Coupon rate = 7.5%YTM = 6.3%To find: The price of the…

Q: A fourteen-year bond has a 10% coupon rate and a face value of $1,000. If the current price of the…

A: Yield to maturity is rate of return which equates the present value of coupon payments and present…

Q: Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of…

A: The amount that the bondholder expects in order to invest in bonds at the time of maturity is…

Q: Jordie Systems Co. plans to issue bonds with a par value of $1,000 and 20 years to maturity. These…

A: A bond is an instrument used by companies to raise debt capital from investors. The bonds are issued…

Q: Consider a bond with a 5% annual coupon and a face value of $5,000. Complete the following table.…

A: A bond is a fixed income security that pays periodic coupon payments to the holder of the bond and…

Q: Carla Vista Corp. has five-year bonds outstanding that pay a coupon rate of 8.6 percent. If these…

A: Time = 5 * 2 = 10Coupon rate = 8.6 / 2 = 4.3%Current Price of Bond = $1057.26Face Value =…

Q: The market price of a $1000 par value bond issued by Kramerica, Inc that makes semiannual coupon…

A: Solution:-Coupon rate is the percentage of annual coupon amount to the face value of the bond.To…

Q: Cassidy Industries' circulating bonds have a face value of $800, a semiannual coupon of 8%, 12 years…

A: Face value of bond = $ 800 Coupon rate = 8% Semi annual coupon amount = 800*0.08/2 = $ 32 Years to…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Bond is a borrowing security issued by the company to raise funds from the market by making an…

Q: Bond X is currently selling for $1050. The bond $1000 par value bond carries a coupon rate of 14%…

A: The return on your investment in a bond is referred to as yield in general. Price and yield have a…

Q: Footsteps Company has a bond outstanding with a coupon rate of 5.1 percent and annual payments. The…

A: Solution:-Yield to maturity means the rate of interest earned by the bond holder if the bond is held…

Q: Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.…

A: Solution Given Annual interest 98 Market value 870 Years to maturity 5 Par…

Q: Garland Corporation has a bond outstanding $90 annual interest payment , a market price of $820, and…

A: Bonds are referred to as fixed-income instruments issued by companies as they traditionally pay a…

Q: Using the bond's yield rate, calculate the Macaulay duration of the bond in years.

A: The Macaulay duration of a bond represents the weighted average time until each cash flow is…

Q: Whatever Incorporated, has a bond outstanding with a coupon rate of 5.56 percent and semiannual…

A: We will use the below formula to calculate the market price of the bond.Price of the bond =…

Q: You need to know the yield to maturity on your company’s debt. The quoted bond price is 103.425, the…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: Calculate the current yield on a bond with the following characteristics: par value of $1000…

A: Solution:- Current yield means the percentage of annual coupon payments to the current bond price of…

Q: You notice in the WSJ a bond that is currently selling in the market for ​$1,053 with a coupon of9​%…

A: Market price of bond = $1,053 Coupon rate = 9% Par value = $1000 Annual coupon amount = Par…

Q: A bond has a face value of $ 1million with semi- annual coupon of 8% and a yield of 10% and 3 years…

A: Modified duration = duration / (1+ytm) Convexity of bond =(∑ convexity calculation)/(bond…