Year 0 $96.0 $96.0 $96.0 14 $96.0 15 $96.0+$2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.200% paid monthly. OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid semiannually. OC. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid annually. OD. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid quarterly.

Year 0 $96.0 $96.0 $96.0 14 $96.0 15 $96.0+$2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.200% paid monthly. OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid semiannually. OC. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid annually. OD. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid quarterly.

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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The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 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 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%.
A corporate bond has a face value of 10,000 a bond interest rate of 6% per year , and a maturity date of 20 years from now . if the purchaser M.A.R.R 10% the present worth of the bond is closest : a. $ 9000 b. $ 8000 c. $ 7,500 d. $ 6,590 plzz explain it
Fingen's 18-year, $1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $1,140 and the market's required yield to maturity on a comparable-risk bond is 10 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? enter your response here%
K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {
Period 0 $26.0 2 $26.0 3 $26.0 19 $26.0 20 $26.0+$1 A corporation issues a bond that generates the above cash flows. If the periods shown are 6 months, which of the following best describes that bond? O a 10-year bond with a notional value of $1,000 and a coupon rate of 5.2% paid semiannually. O a 20-year bond with a notional value of $1,000 and a coupon rate of 5.2% paid quarterly a 7-year bond with a notional value of $1,000 and a coupon rate of 2.600% paid monthly. O a 10-year bond with a notional value of $1,000 and a coupon rate of 1.300% paid annually.
Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $930 and the market's required yield to maturity on a comparable-risk bond is 14 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? Question content area bottom Part 1 a. What is your yield to maturity on the Fingen bonds given the market price of the bonds?
A bond has a face value of ₱100, 000, 4-year maturity period, and 3.2% coupon. What is the total interest paid to the bondholder? a. ₱12, 700 b. ₱12, 800 c. ₱12, 500 d. ₱12, 600
Give typing answer with explanation and conclusion A corporate bond makes payments of $96.70 semi-annually for ten years with a final payment of $2096.70. Which of the following best describes this bond? a. a 10-year bond with a face value of $2096.70 and a coupon rate of 9.7% with semi-annual payments b. a 10-year bond with a face value of $2096.70 and a coupon rate of 9.2% with semi-annual payments c. a 10-year bond with a face value of $2000 and a coupon rate of 9.2% with semi-annual payments d. a 10-year bond with a face value of $2000 and a coupon rate of 9.7% with semi-annual payments
Q4. A long term bond with a face value of $10,000 has a bond interest rate of 6% per year pay: quarterly. What are the amount of the interest payments? (a) $160 (b) $150 (c) $170 (d) $155 (e) your answer (... ......)
A $1,000, 5%, 20-year annual-pay bond has a yield-to-maturity (YTM) of 6.5%. if the YTM remains unchanged, how much will the bond value increase over the next three years? A. $13.44 B. $13.62 C. $13.78 D. $13.96
1. Bond prices and yields (S3.1) A 10-year bond is issued with a face value of $1,000, paying interest of $60 a year. If interest rates increase shortly after the bond is issued, what happens to the bond's a. Coupon rate? b. Price? c. Yield to maturity?
Cost of debt Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 8.8% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a $914.64 b. $1,000.00 c. $1,024.73 d. $1,149.55

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