Suppose James buys a newly issued bond for $7000 the bond pay $700 at the end of each year for the first nine years And then pay 7700 upon its maturity at the end of the 10th year in this example the dollar value of the coupon payment is
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- The Saleemi Corporation's $1000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $1,095. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 4 percent? ___________________________________________________________________________a. The yield to maturity on the Saleemi bond is ____ %. (Round to two decimal places.)The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?Quinn purchases a bond for $29,000 when the market interest rate is 13% per year, compounded semiannually. The bond has an interest rate of 10% per year payable semiannually and a maturity date of 24 years. What is the face value of this bond? (Hint: Solve for C = Z given Vy= $29,000)
- The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for $865. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 8 percent?A bond with a face value of $1000 can be purchased for $800. The bond will mature 5 years from now, and the bond dividend rate is 6%. Dividends are paid every 6 months. What effective interest rate would an investor receive if she purchased the bond?A buyer purchases a $1000 face value bond that pays a 5% coupon on January 1 and July 1st of each year. He buys the bond on February 2 for $980. What's the buyer's total outlay?
- a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%You 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?the Saleemi Corporation's $1,000 bonds pay 11 percent interest annually and have 12 years until maturity. You can purchase the bond for $895. a. what is the yield to maturity on this bond? b. should you purchase the bond if the yield to maturity on a comparable - risk bond is 14 percent?
- You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are 11.25%, what is the present value of your bond?ASAP 1. Amed bought a bond tor $800. The bond has a face value of $1000, pays 10% dividend semiannualy and will mature in 10 yearsa) Draw the cash flow diagram of the bond. b)What is the yield to maturity of the bond (bond's rate of return per year)? c) Suppose that Ahmed is yet to buy this bond provided that the market interest rate is 8% nerest compounded quarterly, what will be the maximum that he will pay to buy this bond.The saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for $875. A. What is the yield to maturity on this bond? B. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? A. The yield to maturity on the saleemi bonds is Round to two decimal places