Which of the following bonds is trading at par? A. a bond with a $1,000 face value trading at $1,000 O B. a bond with a $1,000 face value trading at $999 C. a bond with a $2,000 face value trading at $2,012 a bond with a $2,000 face value trading at $1,987
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- Which of the following bonds is trading at par: Group of answer choices D. A bond with a $2,000 face value trading at $2,012 B. A bond with a $1,000 face value trading at $999 A. A bond with a $1,000 face value trading at $1,000 C. A bond with a $2,000 face value trading at $1,987A bond with a face amount of $12,000 has a current price quote of 107.15. What is thebond’s price?a. $12,107.15b. $1,285.80c. $12,858.00d. $128,580The prices of several bonds with face values of $1,000 are summarized in the following table: Bond A B C D Price $912.12 $1,008.50 $1,195.61 $1,000.00 For each bond, provide an answer for whether it trades at a discount, at par, or at a premium. Bond A trades at (a) (Select from the drop-down menu.)
- A bond with a face value of $250,000 and a quoted price of 98 has a selling price ofa. $250,098.b. $245,000.c. $255,102.d. $250,000.Calculate the value of each bond and discuss whether it sells at par, discount, or premium. (Annual interest rate) O A. Bond Bond Value A B C O B. Bond A B C O C. Bond A B с O D. Bond A B C $1,149.39 Discount $1,000.00 Par $85.60 Premium Bond Value Sells at par/discount/premium Bond Value $1,149.39 Premium $1,000.00 Par $85.60 Discount Sells at par/discount/premium Bond Value Sells at par/discount/premium $1,149.39 Premium $1,000.00 Par $85.60 Premium Sells at par/discount/premium $1,049.39 Premium $1,100.00 Premium $85.60 Discount Bond Par value Coupon interest Years to rate maturity JA B IC $1000 14% $1000 18% $100 10% 120 16 18 Required return 12% 8% 13%Ch7. A bond with a par value of $1,000,000 and a market price of 1,010,000 is called "premium bond". True False
- The prices of several bonds with face values of $1,000 are summarized in the following table: For each bond, state whether it trades at a discount, at par, or at a premium.A bond traded at 971⁄2 means that a. The bond pays 971⁄2% interest. b. The bond trades at $975 per $1,000 bond. c. The market rate of interest is below the contract rate of interest for the bond. d. The bonds can be retired at $975 each. e. The bond’s interest rate is 21⁄2%.Assume a face value of a bond JD 1000, when the bond reaches maturity, if it is selling at:a. JD 900, bond value goes down to JD 850b. JD 1000, bond value goes down to JD 900c. JD 1100, bond value goes up to JD 1200 d. JD 1050, bond value goes down to JD 1000
- Bond prices depend on the market rate of interest, stated rate of interest, and time. Read the requirements. Requirement 1. Compute the price of the following 5% bonds of Country Telecom. a. The price of the $500,000 bond issued at 75.75 is Requirements 1. 2. Compute the price of the following 5% bonds of Country Telecom. a. $500,000 issued at 75.75 b. $500,000 issued at 103.50 c. $500,000 issued at 95.75 d. $500,000 issued at 102.50 Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer. Print Done - XIf a P1,000 bond sells for P1,125, which of the following statements are correct? I. The market rate of interest is greater than the coupon rate on the bond. II. The coupon rate on the bond is greater than the market rate of interest. III. The coupon rate and the market rate are equal. IV. The bond sells at a premium. V. The bond sells at a discount. a. I and IV b. I and V c. II and IV d. II and VCalculate the yield to maturity for each bond and discuss whether it sells at par, discount, or premium? O A. Bond YTM A O B C O B. Bond A B с C. Bond A B C с O D. Bond A B с 12.71% Discount 12.00% 10.22% YTM Sells at par/discount/premium YTM Premium Discount Sells at par/discount/premium Discount 12.71% 12.00% Par 10.22% Premium Sells at par/discount/premium Premium 12.71% 12.00% Par 10.22% Premium Sells at par/discount/premium Discount YTM 10.22% 12.00% Par 12.71% Premium Bond Par value Coupon interest rate $1000 9% $1000 12% $500 A B C 12% Years to maturity 18 16 12 Current value $820 $1000 $560