The Wildhorse Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.375 percent. The current market rate for similar securities is 10.50 percent. Assume that the face value of the bond is $1,000, Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 8.29 a-d (Excel Video)(a) What is the current market value of one of these bonds? (Round answer to 2 decimal places, eg 15.25)

The Wildhorse Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.375 percent. The current market rate for similar securities is 10.50 percent. Assume that the face value of the bond is $1,000, Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 8.29 a-d (Excel Video)(a) What is the current market value of one of these bonds? (Round answer to 2 decimal places, eg 15.25)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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will thumb up if correct. only need (b). please show the work too (FV-PV)
Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par. 5. Assume that the bonds are sold for $775 each. Prepare the entry to recognize the sale of the 750 bonds. Record issuance of bonds at discount 6. Assume that the bonds are sold for $950 each. Prepare the entry to recognize the sale of the 750 bonds. Record issuance of bonds at premium
Determine the price of a $380,000 bond issue under each of the following independent assumptions: Note: Use tables, Excel, or a financial calculator. Round your intermediate calculations and final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. Face value 380,000 380,000 380,000 Maturity 10 years 10 years 20 years Interest Paid annually semiannually semiannually Stated Rate 11% 11% 10% Effective Rate 11% 12% 10% Price 379,998 358,205
Hello, could you kindly assist with these and write a full explanation and journal entry? Your assistance is highly appreciated. On January 1, 2015, Aylmer issued $300,000 14% 10-year bonds. The bonds were issued for investors to have a yield of 12%. Because of the high interest rate, Aylmer decided to call the bonds on December 31, 2020 at 108. No entries were made in 2020 in respect to this bond. In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" to determine the carrying value, create the amortization schedule and perform any additional calculations. NOTE - the amount on the trial balance (Bonds Payable - Series 1) is your check number for the amortization schedule at December 31, 2020 - BEFORE ADJUSTMENTS and 2020 Interest payment. Present Value Calculation & Amortization Schedule PV Rate Nper Pymt FV Type On January 1, 2020, the company issued $3,000,000, 6% bonds with a 10-year…
A bond trader purchased each of the following bonds at a yield to maturity of 9%. Immediately after she purchased the bonds, interest rates fell to 6%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is the percentage change in the price of each bond after the decline in interest rates? Assume annual coupons and annual compounding. Fill in the following table. Do not round intermediate calculations. Round your answers to two decimal places. Price @ 9% Price @ 6% Percentage Change 10-year, 10% annual coupon $ fill in the blank 2 $ fill in the blank 3 fill in the blank 4 % 10-year zero fill in the blank 5 fill in the blank 6 fill in the blank 7 % 5-year zero fill in the blank 8 fill in the blank 9 fill in the blank 10 % 30-year zero fill in the blank 11 fill in the blank 12 fill in the blank 13 % $100 perpetuity fill in the blank…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Click here to view the factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
Please do stepwise and correct please ill like.. and use excel given formulas only.
You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 25 years to maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the price of the bonds based on semiannual analysis. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond price b. With 20 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) New bond price
Video Excel Online Structured Activity: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.1%. Bond C pays a 10.5% annual coupon, while Bond Z is a zero coupon bond. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Assuming that the yield to maturity of each bond remains at 9.1% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Do not round intermediate calculations. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 3 $ $ 2 $ 1 $ $ Check My Work Reset Problem
Subject - account Please help me. Thankyou.
Excel Online Structured Activity: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.4%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Assuming that the yield to maturity of each bond remains at 9.4% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Do not round intermediate calculations. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z 4 $ fill in the blank? $ fill in the blank? 3 $ fill in the blank? $ fill in the blank? 2 $ fill in the blank? $ fill in the blank? 1 $ fill in the blank? $ fill in the blank? 0 $ fill in the blank? $ fill in the…

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