5 years ago, you purchased a corporate bond for $942. At the time, the bond had a YTM of 9% and 9 years left to maturity. Today, the YTM on your bond is 6%. What is the current market price of your bond? Assume fixed annual coupon payments and a par value of $1,000. ( Round your answer to the nearest whole dollar) .

Q: Three years ago you purchased a 10% coupon bond that pays semiannual coupon payments for $986. What…

A: Bond equivalent yield can be found by using the following formula:

Q: ou purchased a zero-coupon bond one year ago for $76.00. The market interest rate is now 9.0…

A: Zero coupon bonds are those bonds that do not pay any coupons.These bonds are issued at steep…

Q: How much would be your total yield if you sell this bond today?

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

Q: You have a $1,000 face value bond. You know that it originally had a maturity of 14 years, one year…

A: Compound = Semiannually = 2Face Value = fv = $1000Time = t = 14 * 2 = 28Coupon Rate = 7.9 / 2 =…

Q: to maturity. Today, the YTM on your bond is 6%. With this information, can you calculate the current…

A: Price of bond is the present value of coupon payment and the present value of the par value of bond…

Q: Suppose your organization has issued a 30 year, 1,000,000 par-value bond with semi-annual coupons of…

A: Offer for redemption should be done if market interest rates are above the coupon rate and should…

Q: Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds…

A: Bond price:The market value of a bond at any particular time is referred to as the "bond price". It…

Q: Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $967. What…

A: Yield earned by the bond is calculated by RATE function in excel, where the purchase price is…

Q: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…

A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel

Q: You have the opportunity to purchase a 24-year, $1,000 par value bond that has an annual coupon rate…

A: The price of the bond is calculated in Excel using the PV function. The PV function is used with par…

Q: An investor invested a one-year maturity zero coupon rate bond 60 days ago by paying 965 USD from…

A: In a typical sale pruchase transaction of a bond, we need to find the return from the investment.

Q: ou are interested in purchasing a bond from ExAm Solutions. The bond had a 40 year maturity when it…

A: Given information: Years to maturity : 30 Face value : $1000 Coupon rate : 8% Current price : $950

Q: You purchase a newly issued bond from Apple. The bond has a face value (F) of $1,000; coupon…

A: A bond is a debt instrument issued by a company that allows them to borrow a sum of money with the…

Q: You purchased a 12-year Treasury bond with a 7 percent coupon rate. The bond’s asked yield is…

A: Price of bond = Clean price + Accrued interest.

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Given: Particulars Amount Present value (PV) $975.30 Years completed 4 Yield to…

Q: Yesterday you paid $1000 for a 6% coupon, $1000 face value 5-year bond. It is callable at the end…

A: Bond price is given by  P = I(1-(1+r)-p)/p + F/(1+r)p Where ,  F = face value = 1000 r = discount…

Q: On the issue date, you bought a 30-year maturity, 5% semi-annual coupon bond. The bond then sold at…

A: Calculation of realized return: Answer: Realized rate of return is 9.30%

Q: An ordinary bond of AGL Corporation has an annual coupon rate of 8% and a face value of $1,000. The…

A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…

Q: Suppose your organization has issued a 30 year, 1,000,000 par-value bond with semi-annual coupons of…

A: Bonds are the debt security which is offered or issued by corporates or the government to collect…

Q: You own a $1,000 par value bond with 20 years to maturity that is paying an annual coupon rate of…

A: Price=Coupon Payment×1-1+YTM-nYTM+Face Value1+YTMn

Q: Callaghan Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a…

A: The current price of a bond is the present value of its expected future cash flow which is…

Q: You buy a 6 year bond with an annual 5% coupon at par value, $1000. If the yield to maturity at the…

A: Solution: Bond value is the present value of the cash inflows receivable from the bond for the…

Q: A corporate bond has 18 years to maturity, a face value of $1,000, a coupon rate of 5.5% and pays…

A: The price of a bond is equal to the sum of the present value of coupon payments and the present…

Q: You buy the 6 percent coupon bond today and the price of the bond is $1.012. Par value of the bond…

A: Using excel RATE function

Q: Give typing answer with explanation and conclusion  Madsen Motors's bonds have 24 years remaining…

A: Generally, the value of a financial asset represents a sum of the present value of all cash flows…

Q: A firm issues a bond today with a $1,000 face value, an 8% coupon interest rate, and a 25-year…

A: The total return expected on a bond if it is kept to the end of its maturity period and all interest…

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Purchase price of the bond (PP) = 975.30 YTM (r) = 0.0925 Maturity period (n) = 8 Years Annual…

Q: You purchased a $1,000 par value bond one year ago at a price of $1050 when it was issued. At the…

A: Bond is the security that provides coupon payment to the bondholder over the maturity period. The…

Q: ou just purchased a 3% coupon bond that makes semi annual payments with 20 years left to maturity…

A: Following formulas are used.   Capital gain in dollar=Selling price -Purchase priceCapital gain in…

Q: ed a bond 2 years ago for $985.43. Today the bond is priced at 794.27, and it matures in 6 years.…

A: present value of all the coupons and principal receipts discounted by YTM. Given Purchase price of…

Q: You have a $1,000 face value bond. You know that it originally had a maturity of 15 years, one year…

A: Face value = $1,000Coupon rate = 6.6%YTM = 5.5%Original years to maturity = 15 years

Q: You bought a 16-year, 03.00% semi-annual coupon bond today and the current market rate of return is…

A: Bond price will be the aggregate of present value of all coupon payments and present value of face…

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

A: The Price of the Bond is the PV of Coupons and Par value discounted at YTM. We can use the formula…

Q: 4 years ago you purchased a 12 year maturity, 3.3% coupon annual pay bond at a price of $90 per $100…

A: The time or period between the purchase of a security and the selling of a security is referred to…

Q: You bought a bond for $890 today. The bond's coupon rate is 5.7%, with 12 years left to maturity and…

A: Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it…

Q: Three years ago you purchased a 8 % coupon bond that pays semiannual coupon payments for $987. What…

A: Bonds refer to instruments that are issued by companies to raise debt capital from their investors.…

Q: 4.   You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. What is…

A: The holding period rate of return would be calculated by using the following formula:Rate of…

Q: A $1,000 bond has a 4 percent coupon and currently sells for $900. The bond matures after five…

A: Anticipated Yield = [ Coupen Amount + {  ( Face Value - Price ) / Number of years } ] / [ {  ( Face…

Q: What is the yield to maturity at a current market price of $834? Round your answer to two decimal…

A: Yield to maturity is the yield earned when the bond is held till maturity. The YTM is the discount…

Q: Madsen Motors's bonds have 6 years remaining to maturity. Interest is paid annually; they have a…

A: A bond is a debt investment where an investor loans money to an entity (typically a corporation or…

Q: Exactly 7 years ago, you bought a $1,000 par value paying 9.0% coupons on a semiannual basis for…

A: Here,Purchase Price of Bond is $1,076.95Coupon Rate is 9%Payment Frequency (m) is Semi Annual i.e…

Q: Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity. (a) If you bought Bond A…

A: Hey, since there are multiple questions posted, we will answer first three question. If you want any…

Q: Suppose that today’s date is April 15. A bond with a 7% coupon paid semiannually every January 15…

A: First we need to calculate accrued interest on bond because last interest paid on 15 January. There…

Q: You purchased a coupon bond that had a maturity of 20 years. The annual coupon interest rate was 10%…

A: Bond valuation includes the determination of the present value of a bond's future cash flows, which…