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: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…

A: Present value of the bonds will present value of annuity received at the end of every year for eight…

Q: A $1,000 principal value bond costs $35 in quarterly interest and matures in ten years. How much…

A: 71c. $1,115.57

Q: A. P 57,620 B. P 75,260 C. P 57,720 D. P 75, A $50,000 bond has a maturity date of six years from…

A: Bonds are kind of debt instruments in which there is periodic interest payment and face value is…

Q: An $6,000 face-value bond matures in four (4) years and pays 6% per year payable Semiannually An…

A: Investor pays the bond’s value at investor’s required rate of return. Bond’s value is the present…

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: 4. You buy a 4% 10-year $1,000 face value bond for $1,148.14. A year later, you sell the bond for…

A: The rate of return on the bond is calculated as sum of coupon yield and the capital gain yield

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: 64. You plan to buy a $1,000 face value 10-year bond that earns $60 in interest every six months.…

A: Please find the answer to the above question below:

Q: You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and…

A: The yield to maturity of the bond is the rate of return that an investor earns on the investment in…

Q: A $1,000, 5%, 20-year annual pay-bond has a yield of 6.5%. If the yield remains unchanged, how much…

A: Using Excel PV function to calculate price of the bond

Q: . A 5% semi-annual pay $1,000 bond matures in 4 years. What is the YTM if the price is…

A: Compound = Semiannually = 2Coupon Rate = c = 5 / 2 = 2.5%Face Value = fv = $1000Time = t = 4 * 2 =…

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: 21. A bond with a face value of $1000 and an 6% annual bond rate is redeemable at face value in 20…

A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Q: 127. Assume that for the next three years the maturity yield will stay stable. Three years from now,…

A: Please find the answer to the above question below:

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 $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: 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: Assume that you just bought a 5-year bond that pays interest annually of $80 ead year and will…

A: Yield to maturity of bond is rate of return realized on bond when bond is held till maturity and…

Q: What would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in…

A: Introduction: Debenture bonds are issued by the organization to borrow money for its business…

Q: Q10. Consider a discount bond with a principal payment of $1,000, a price of $900, and a YTM of E. 5…

A: Face value (FV) = $1000 Price (PV) = $900 YTM (r) = 5.4093%

Q: One hundred $1,000 bonds having bond rates of 8% per year payable annually are available for…

A: Bond valuation is done through the concepts of present value. The value of the bond is the present…

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: What is the present value of a $500,000 12-year Bond with annual interest payments of $40,000…

A: Current value of  a bond is that amount which is calculated with the help of future benefits from…

Q: How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual…

A: When a bond's coupon rate is calculated as a percentage of its face value, it indicates the annual…

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: Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid…

A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…

Q: How much  would you pay for a $30,000, 4 year, 5% bond if I want a return of 7%  { assume bond pays…

A: Given: Bond face value = $30,000 Coupon = 5% Semi annual coupon rate =2.5% So, semi annual coupon…

Q: Assuming you want to purchase a 5 year bond that has a face value of $20,000 that pays 12% interest.…

A: Solution: Bond price is the price at which a bond is trading in the market. It is calculated by the…

Q: A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6…

A: Selling price of the bond is the market price for which a bond will be sold off. The selling price…

Q: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…

A: Present value = Amount to be received annually X Present value of annuity of $ 1 at 3% for 8 years

Q: 18. Assume that a 15-year, $1,000 face value bond pays semi-annual interest of $30.00. If an…

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

Q: Given the following spot and forward rates:   Current 1-year spot rate is 3.12%. One-year forward…

A: A bond is a debt instrument used to raise capital by a company or government. It can be traded on…