What is the present value of a semi-annual coupon bond that pays you 8% coupon rate with a maturity of 30 years?  Assuming 8% discount rate and a $100 par value.

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Q: The US Govermment wanted to auction $600 million worth of 1-year Treasury Bills. Bids for $100…

A:

Q: Your good friend is looking to buy a bond that pays semi-annual interest. The par value is $1,000…

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Q: 9 Weatherhead Bakery is issuing a bond with 10 year maturity and annual coupon payments of $80. The…

A: A bond is a debt instrument where a loan (in the form of bond price) is received by a company, which…

Q: ou buy a bond today. The bond has a face value of $1000, will mature in 10 years, and pays coupon on…

A: Given: Face Value of bond “FV” = $1000 Annual coupon rate = 8% Annual Coupon “PMT” = 8%*1000 =$80…

Q: 1. An 8% corporate bond with face value of P 100, o00 matures in 5 years. The yield to maturity is…

A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

Q: ou just bought a newly issued bond which has a face value of $1,000 and pays its coupon once…

A: Face Value of bond is $1,000 Coupon rate is 6% Maturity is 20 years Yield to maturity is 8%

Q: The bank offers to sell you a bond for 585.43. No payment will be made until the bond matures 10…

A: Working note:

Q: Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid…

A: Coupons are paid on bonds periodically according to stated interest rate on the bonds and frequency…

Q: Last year Janet purchased a $1,000 face value corporate bond with an 12% annual coupon rate and a…

A: YTM is the rate of return a bond will generate if it is held until maturity. It is that discounting…

Q: what is the principal amount to be repaid at the end of ten years? Show your work.

A: Price of the bond is the PV of all future coupons and par value discounted at the YTM. By…

Q: uppose you considering buying a 10-year bond. This bond will pay ou 1603 taka every year for the ext…

A: Price of bond will be the present value of future cash flow from the bond and that would be the…

Q: I already ask this but I whant know how you do the calculation, please could you show me all the…

A: Calculating the price of bond if interest rate on the bond is 10%. We have,Price of bond = C [1- (1…

Q: 6. An initial sum of $50,000 is invested in a bond. You will receive payments of $2,000…

A: a. Semi - Annual Interest Rate: Given: Investment amount = $50,000 Semi-Annual Interest received =…

Q: What is the price today (in dollars and cents) of a 10-year zero coupon bond if the required rate of…

A: Time = t = 10 YearsRequired Rate of Return = r = 3.75%Face Value = fv = $1000

Q: If you had two investments to choose from, one a perpetuity that pays $100/year forever, or the…

A: Alternative 1: Perpetuity that pays $100/year forever Alternative 2: Bond that pays interest of…

Q: Use your knowledge of bond pricing to explain under what circumstances you would be willing to pay…

A: Price of bond is the present value of coupon payments plus present value of face value of bond based…

Q: You have $5,000 to invest for the next year and are considering three alternatives:a. A money market…

A: We can explain the role that our forecast of future interest would play in our decisions as follows:

Q: Your good friend is looking to buy a bond that pays semi-annual interest. The par value is $1,000…

A: Computation of bond price:Hence, the recommended bond price will be $1,085.84.

Q: You want to buy a 9 year bond with a maturity value of $3,000, and you wish to get a return of 5.5%…

A: Using excel PV function

Q: I am having trouble solving this problem.  Can you please provide me with some help?  Thank you.  I…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: 2- How much would you pay for the bond that mature after 30 years and has a semiannual coupon…

A: Bonds are a kind of loan agreement in which only interest is paid each year and par value is paid on…

Q: Assume an organization could issue a zero-coupon bond at an annual interest rate of 4 percent with…

A: Compound = Semiannually = 2Interest Rate = r = 4 / 2 = 2%Time = t = 20 * 2 = 40 Present Value = pv =…

Q: Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about…

A: Using excel PV function to calculate the amount you will be willing to pay for this bond.

Q: You are considering investing in a savings bond that will pay $50,000 in 6 years. If the competitive…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: How much (in dollars) will you pay?

A: Bond valuation is the process of finding the fair value of the bond. Fair value means the present…

Q: is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 6 years…

A: The  Zero coupon bond is the type of bond which does not pay any interest during the life of bond as…

Q: If the interest rate is 4 percent, what is the present value of a security that pays you $100 two…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A $7100 bond bearing interest at 3.5% payable semi-annually is due in 8 years. Money is worth 6.9%…

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

Q: a. What is the present value of a security that will pay $4,000 in 20 years if securities of equal…

A: a) Present value = Future value /(1+rate)^years

Q: You have just been offered a bond for $880.10. The coupon rate is 7 percent payable annually, and…

A: Using excel NPER function

Q: What is the value to you of a 9 percent coupon bond with a par value of $10,000 that matures in 10…

A: Par value (FV) = $10,000 Coupon rate = 9% Semi annual coupon amount (C) = $10,000*0.09/2 = $450…

Q: If you purchase a 3-year, 9% coupon bond for $950, how much could it be sold for 2 years later if…

A: Zero coupon bonds are bonds which do not pay coupons and sold at discount to face value

Q: One year ago you bought a $10,000, 4-year Government of Canada Treasury Bill (discount bond) at the…

A: Solution:- The current market price of a bill means the price at which a bill is trading in the…

Q: 6) You buy a 5-year bond that pays a $4 coupon each year for five years (first coupon paid the end…

A: Bonds are debt instruments issued by companies. The issuing company pays coupons or interest to the…

Q: If you wanted to achieve a 7% return on this bond ($10,000 face value, payable in 10 years), with a…

A: Bond price refers to the current market price at which a bond is traded. It represents the present…

Q: Suppose a State of Califomla bond will pay 1,000 eight years from now. If the going interest rate on…

A: Worth of the bond can be calculated by discounting the future cash flow of the bond at the given…

Q: You are considering a savings bond that will pay $100 in 8 years. If the interest rate is 2.2%, what…

A: The objective of this question is to find out the present value of a savings bond that will pay $100…

Q: You have three debt instruments: a simple loan for $1 million that requires a repayment of…

A: Information Provided: Simple loan PV = $1,000,000 FV  = $1,009,000 Term = 1 year Discount bond…

Q: Honesty Company would like to borrow funds from Integrity Company. The risk-free rate is 5% and the…

A: Current inflation rate= 1% Inflation rate in following year = 2% Risk free rate = 5% Margin relevant…

Q: You own a bond that will pay $103, 6 years from today, and $211, 8 years from today. Your discount…

A: Present Value is a capital budgeting technique which helps in knowing the current value of future…

Q: 30) Suppose that you currently hold a bond with a face value of $1000, six-year maturity that pays 8…

A: Variables in the question:Face value=$1000Coupon rate=8% (annual payment)Reinvestment rate=9%N…