Riley purchased a bond for 1000 11 years ago. The bond rate is 5 percent and the face value is 1,000. What should the selling price be in order to obtain a yield of 7.4 percent?
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- Rossiana Marie, Inc. lists a bond as Ross 9s34 and shows the price as selling for 88.875% of its face value. If your required return rate is 10%, would you buy one of these bonds in 2021?You purchased a coupon-bearing bond at $1000 and resold it at $1200 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? OA 0.060 O B. 0.050 OC. 0.200 O D. 0.26To secure a return of 4%, at what price should a bond be purchased if it is redeemable at P 1,000 in 10 years and plays annual dividends of P 35,00? Ans. P 959.45 You purchased a P 500 bond for P 5,100.00. The bond pays 200 per year. It is redeemable for P 5,050 after 10 years. What is the net rate of interest on your investment? Ans. 3.486%
- You purchased a Tk.1,000 bond paying 10 percent semiannual interests two years ago. The bond has a maturity of 8 years and it can be sold today at Tk.960. Use the interpolation technique to calculate the yield to maturity of the bond and What is the annualised yield on the bond? please solve thisRossiana Marie, Inc. lists a bond as Ross 9s34, and shows the price as selling for 88.875% of its face value. If your required return rate is 10%, Is it good to buy one of these bonds in 2021?(Bond valuation) You own a 10-year, $1,000 par value bond paying 8 percent interest annually. The market price of the bond is $825, and your required rate of return is 12 percent. a. Compute the bond's expected rate of return. b. Determine the value of the bond to you, given your required rate of return. c. Should you sell the bond or continue to own it? ... a. What is the expected rate of return of the 10-year, $1,000 par value bond paying 8 percent interest annually if its market price is $825? % (Round to two decimal places.)
- What is the present value (i.e., price) today of a bond that will pay its owner \$1,000,000$1,000,000 five years from today if the discount rate is 4\%4% per annum?What is the approximate price of a bond that matures in two years (T= 2), with a face value of $1000 (F= $1000), and an annual coupon payment of $50 (C = $50), if the interest rate is 6 percent? $1056.67 $1100.00 $876.33 $981.67You purchased a $1000 20-year bond with a 5 year call provision. If the bond pays $95 annually and the present value of the bond is $850, what is the yield to call?
- (b)You purchase the $110 bond today and sell it off next year at $108. What is its one-year rate of return (assume the bond’s coupon rate is 5% and its face value is $100)? If the expected inflation over the course of the year is 2%, what would the ex-ante real rate of return be for the bond on part (b)?You purchased a coupon-bearing bond at $800 and resold it at $900 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. 0.075 O B. 0.125 O C. 0.067 O D. 0.200What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5 years and an annual interest payment of 25%, when the desired rate of return is 25%? a) 18000b) 15000c) 12000d) 16000e) 24000
