A 1000 par value 18-year bond with annual coupons is bought to yield an annual effective rate of 5%. The amount for amortization of premium in the 10th year is 20. Find the book value of the bond at the end of the 10th year.
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- 1. A bond, with a face value of P100,000 redeemable at par in 10 years, pays dividends at the rate of 6% per annum. Determine the purchase price of the bond now and its book value at the beginning of each year if the yield on the bond is 10%.A 30-year 8% annual coupon bond with a face value of 1000 is purchased. At the time of purchase, the interest rate is 6%. After the 7th coupon payment, the interest rate rises to 10%. Calculate the difference between the book value of the bond and the market value of the bond immediately after the 7th coupon payment.A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ every six months. (Round to the nearest cent.)
- The current interest rate on a 10-year coupon bond (with face value= $1000 and annual coupon rate= 3.25%) is 1.31%. The buyer of this bond will receive $_____ payment from the bond issuer every year before maturity while holding the bond.A bond is priced at $1,100, has 10 years remaining until maturity, and has a 10% coupon, paid semiannually. What is the amount of the next interest payment?What is the market value of a bond that pays $100 annual interest on a quarterly basis? Assume that the bond has a face value of $1,000, and a 12% yield to maturity. There are 10 years until the bond matures. Please show your math.
- A ten-year USD100 par value bond pays 8% coupons semiannually. The bond is priced at USD118.20 to yield an annual nominal rate of 6% convertible semiannually. a. Calculate the redemption value of the bond. b. Calculate the book value of the bond at the end of 5th year.If a bond can be purchased for $60 and has a maturity value at the end of 10 years of $500, what is the annual rate of return on the bond?You purchase a KD 3000 face value bond with 5 years remaining in its maturity period. The bond has current yield of 15% and its payment are KD 45 made every month. If compounding is annually, calculate the following: 1. The purchase value of the bond. 2. The yield to maturity. (Show trial and error with interpolation)
- A mortgage bond issued by Automation Engineering is for sale for $8,700. The bond has a face value of $10,000 with a coupon rate of 7% per year, payable quarterly. What rate of return will be realized if the purchaser holds the bond to maturity 8 years from now?A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and pays 15 percent per annum, how much should the annual earning interest be? Round off to four decimal places in the final answer/s.Calculate the present value of a $1,000 discount bond with five years to maturity if the yield to maturity is 6%.