ssue price of the bond
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NJN, Inc.issues bonds due in 10 years with a coupon/stated interest rate of 9% and a total face value of $200,000. Interest payments are made semi-annually. The market rate for this type of bond is 10%.
What is the issue price of the bond (rounded to nearest whole dollar?
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- Kinight, Inc., has issued a 3 year bond that pays a coupon rate of 6.10% coupon payments are made semiannually.Given the market rate of interest of 5.80%, what is the market value of the bond?Roman Destinations issues bonds due in 10 years with a stated interest rate of 5% and a face value of $420,000. Interest payments are made semi-annually. The market rate for this type of bond is 4%. Using present value tables, calculate the issue price of the bonds.A company's bond with a face value of $1,000 currently sells for $1,056.17. The bond matures in 8 years. The discount rate for the bond is 9%. What is the coupon rate of the bond if coupons are paid semiannually?
- A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ every six months. (Round to the nearest cent.)Seaside issues a bond with a stated interest rate of 12%, the face value of $40,000, and due in 8 years. Interest payments are made semi-annually. The market rate for this type of bond is 14%. What is the issue price of the bond?Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. What is the amount of interest payments every 6 months? An investor would be willing to pay an amount (equal to, more than, less than) the face value for this bond. (pick one) The bonds were issued at (par, a discount, a premium).
- Ocean Adventures issues bonds due in 10 years with a stated interest rate of 10% and a face value of $330,000. Interest payments are made semi-annually. The market rate for this type of bond is 11%. Using a financial calculator or Excel, calculate the issue price of the bonds.A corporate bond has 20 years to maturity, a face value of $1,000, a coupon rate of 5% and pays interest semiannually. The annual market interest rate for similar bonds is 3%. What is the value of the bond?Twalilwisha Limited has issued bonds with a face value of K100, which pay a coupon rate of 6%. Coupon payments are payable semi-annually. The yields on similar bonds are currently 8% per year. The maturity date is in 10 years’ time.(i) What is the value of each bond? (ii) What is the bonds annual effective rate?