64. You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond? a. $ 826.31 b. $1,086.15 c. $ 957.50 d. $1,431.49 e. $1,124.62

Q: How much can be paid for a P100,000, 10% pa , 20 year bond with interest paid annually, 8 years…

A: Par value = P 100,000 Coupon rate = 10% Coupon amount = 100,000*0.10 = P 10,000 Years to maturity…

Q: The saleemi corporation’s $1,000 bonds pay 6 percent interest annually and have 11 years until…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: TI Company offers to sell you a bond for $651.60. No payments will be made until the bond matures…

A: Price (P) = $651.60 Maturity value (MV) = $1000 Period (n) = 8 Years

Q: Assume that you purchased an 8%, 25-year, $1,000 par, semiannual payment bond priced at $1,016.50…

A: Yield to maturity refers to the rate of return which is required for computing the present value of…

Q: A S30,000, 5% bond redeemable at par with interest payable annually is bought 5.5 years before…

A: if bond is trading in market greater than original than the bond is said to be at premium if bond is…

Q: An investor purchases a 10-year, $5,000 face value bond that pays semiannual interest at annual rate…

A: Detailed explanation:1. Semiannual Coupon Rate Calculation:Semiannual Coupon Rate=210%​=5% 2. Coupon…

Q: ed to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1,000 bonds pay 8…

A: A yearly return is used to represent YTM which provides us with the projected total return from a…

Q: A 10-year annual payment corporate bond has a market price of $1,150. It pays annual interest of…

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

Q: Calculate the present value of an $80,000, 10%, five- year bond that pays $8,000 ($80,000 × 10%)…

A: Given details are : Par value of bond = $80000 Coupon on bond = $8000 Market rate of interest = 10%…

Q: A bond promises to pay $5,350 next year. The interest rate on this bond is 7%. The price of this…

A: In the given question we need to compute the price of a bond.

Q: What is the coupon payment of a 15 -year $10,000 bond with a 9 % coupon rate with semiannual…

A: Given details are : Face value of bonds =$10000 Time period = 15 years  Coupon rate = 9% Coupon…

Q: 5B) After one year you will receive a series of annual interest payments of $1105 for 10 years. At…

A: The maximum amount payable for a bond is the fair value of a bond computed considering the cash…

Q: The yield to maturity of a one- year, $1,000 bond that sells for $710 that requires an interest…

A: YIELD TO MATURITY (YTM) formula: ytm =coupon+par-priceyears to maturitypar +price2

Q: A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable…

A: To calculate  the bond cost we will use the below formula   Bond cost today = FV/[1+(r/m)]n*m Where…

Q: A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public…

A: Maturity = 10 yearsCoupon rate = 4%Price = $993To find: Taxable income from the bond over the coming…

Q: The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years…

A: Yield to maturity Yield to maturity refers to the total rate of return anticipated on a bond if held…

Q: A $3000 bond that pays 9%semi-annually is redeemable at par in 15 years. Calculate the purchase…

A: Solution:- We know, the purchase price of bond is the present value of amounts receivable from the…

Q: Use the following tables to calculate the present value of a $130,000, 5%, 6-year bond that pays…

A: The face value of the bond is $130,000.Maturity is 6 years.Annual coupon payments are…

Q: Emma bonds will mature in eight years; the coupon rate of the bond is 6% paid semiannually. If the…

A: Calculation of Selling Price of Bonds Face Value of Bonds = $ 1,000 Annual rate of interest = 6%…

Q: The stated rate is 5%; the market rate is 4%. The future value of Bonds payable is $1,000. When…

A: Future value of bonds payable = $1000Stated rate = 5%Market rate = 4%

Q: A $26,000 bond with interest at 5.5% payable semi-annually and redeemable at par is bought two years…

A: Bond is a financial intrument as a investment the amount of interest or coupon is received based on…

Q: Fingen's 18​-year, ​$1 comma 000 par value bonds pay 9 percent interest annually. The market…

A: Yield to maturity of a bonds refers to the rate of return that the bond holder will earn if he holds…

Q: Seaside issues a bond that has a stated interest rate of 11%, face amount of $50,000, and is due in…

A: Compound = Semiannual = 2 Coupon rate = 11 / 2 = 5.5% Face Value = fv =$50,000 Time = t = 5 * 2 = 10…

Q: The Saleemi​ Corporation's $1,000 bonds pay 6 percent interest annually and have 11 years until…

A: The face value of the bond is $1,000.The coupon rate is 6%.The maturity is 11 years.The price of the…

Q: Three years age issued 10-year internatinal bonds that pay US investors 11% semiannually. Assume…

A: YTM of a bond stands for yield to maturity. This rate denotes the rate of return which will be…

Q: A newly issued 10-year maturity, 7% coupon bond making annual coupon payments is sold to the public…

A: Bond taxation refers to the process of determining the taxable income generated from owning bonds.…

Q: Labadi Inc issues a bond that has a stated interest rate of 10%, face amount of $100,000, and is due…

A: Number of periods = 5 years*2 Number of periods = 10   Coupon rate = 10%/2 Coupon rate = 5%   Market…

Q: 2. Calculate the premium or discount. 3. Construct the appropriate bond schedule, including the…

A: Solution is given below.

Q: Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value…

Q: A 8-year bond with a face value of 1000 dollars earns interest at 9.9 percent convertible…

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

Q: Assume that the one-year interest rates over the next four years are expected to be 7%, 8%, 9%, and…

A: Liquidity Premium Theory of Interest Rates: According to this theory investors prefer short-term…

Q: You intend to purchase a 13-year, $1,000 face value bond that pays interest of $65 every 6 months.…

A: Face value of Bond (F)=$1,000Interest rate (r) =12.6%Payment Frequency=semi-annualSemi-annual…

Q: Which will you prefer to invest your $1,500: a) a two year bond with interest rate of 9 percent or…

A: Investment amount = $ 1500 Option1 = 9% interest rate bond for 2 years Option2 = 8% bond in year 1…

Q: Suppose a $4,500 bond will pay you $325 at the end of each quarter until the face value of the bond…

A: Introduction: Issue price of the bond is calculated as under: Issue price/Fair market value of bonds…

Q: For a one year bond of $2,300 at a simple interest rate of 10% per year, find the semiannual…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: San Miguel Company's 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market…

A: A bond is a debt instrument that allows the issuer to raise funds from the public. The bond's issuer…

Q: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in three years if the…

A: Duration of the bond is that point of time for which, if the bond is held, then an investor is…

Q: Calculate the value of the following bond: Principal: 10 000 $ Maturity: 3 years Annual interest…

A: Answer Principal = $10 000  Maturity= 3 years Annual interest rate = 4% Half yearly amount  ($10,000…

Q: You wish to purchase some 25-year - maturity strip bonds with the $11,874 in cash you now have. If…

A: Given:- Maturity of the strip bonds: 25 years- Yield: 2.125% compounded semiannually- Face value of…

Q: the Saleemi Corporation's $1,000 bonds pay 11 percent interest annually and have 12 years until…

A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…

Q: Company 'A' issues a bond at $1,000 and offers a payment of $50/year every year for 3 years. If the…

A: Current yield of the bond can be calculated by using the online financial calculator. Current market…

Q: An investor wishes to sell a 20 year, 4%, $40,000 bond that will mature in 9 years. The bond pays…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…