1. Calculate the total annual interest, total cost, and current yield for the bonds. (Round the "Current yield" to the nearest tenth percent and other answers to the nearest whole dollar.) Bond          Number of bonds purchased        Selling price      Total annual interest   Total cost     Current yield Muni 5 22                6                                        81.375                         $                        $                          %

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Q: What is the issue price of a $2,000 bond sold at 981⁄4? What is the issue price of a $6,000 bond…

A: Issue price of a $2,000 bond = $2,000  x 98.25% = $1,965

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A: Computation:

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Q: the accrued interest (in $) and the total purchase price (in $) of the bond purchase

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A:

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Q: A $1500 treasury bond with a current yield of 5.45 that is quoted at 116.6 points. What is the…

A: Treasury Bond = $1500 Current Yield = 5.45% Quoted Point = 116.6

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.