A 15,000, 5 ½% bonds with quarterly coupons is priced to yield 4 ½% converted quarterly. If it is redeemable at 104% at the end of t20 years, find the coupon payment, redemption value, purchase price and bond premium. (Bond Valuation)

Q: Bonds sell for $1,150, they have a 6.75% annual coupond and 15 year maturity and callable in 6 years…

A: Nper = 15 Years (Yield to maturity) Coupon rate = 6.75% PMT = 1000*6.75%= 67.50 (coupon amount) Pv=…

Q: he bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in…

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

Q: On January 1, 2020, Company H issues a $20,000,000 bond with a 9% coupon rate. The bond has a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Calculate the PVB of 4 - year bond with a nominal of 140 000 PLN, interest 6% pa, coupons paid each…

A: Step 1 :

Q: A $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded…

A: Par value (FV) = $30,000 Coupon rate  = 3% Quarterly coupon amount (C) = 30,000*0.03/4 = $225 Years…

Q: Give typing answer with explanation and conclusion What is the coupon payment of a 4-year $1000…

A: Coupon payments are made to bond holder.Coupon payments are income for bond holder.

Q: A firm issues a $10 million bond with a 7% coupon rate, 4 year maturity, and annual interest…

A: Premium on bonds = present value - issued bonds.Interest expense = (issue bonds *coupon rate*Year…

Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…

A: To calculate the bond price we will use below formula   Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…

Q: calculate the flat price of the bond if is sold 3 years and 2 months after issue.

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

Q: A 20,000, 1 ½% bonds with annually coupons are priced to yield 4 ½% converted annually. If it is…

A: Face value = 20,000 Coupon rate = 1.50% Yield rate = 4.50% Redemption to face value ratio = 104%…

Q: Brookline issues bonds with a coupon rate of 9%, face value of $190,000, and maturity in 10 years.…

A: Given, Face value = $190,000 Coupon rate = 9%/2 = 4.5% Stated rate = 8%/2 = 4%

Q: Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly…

A: Par value (FV) = $ 1000 Coupon rate = 4.45% Semi annual coupon amount (C) = 1000*0.0445/2 = $ 22.25…

Q: How much will the coupon payments be of a 15-year $500 bond with a 9% coupon rate and quarterly…

A: To calculate the coupon payment amount we will use the below formula   Coupon amount = FV*(C/M)…

Q: A 9,000 bond, redeemable at par, pays interest at 5% to yield the purchaser 4%, quarterly for 2…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

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: (Yield to​ maturity) The market price is ​$1,100 for a 9​-year bond ​($1,000 par​ value) that pays 9…

A: Market price = $1100 Par value = $1000 Coupon rate = 9% Semi annual coupon amount = 1000*0.09/2 =…

Q: A 10,000 bond wit interest at 6% payable quarterly is bought to yield 4 ½% converted quarterly. On a…

A: Face value of bonds  10,000.00 Carrying value of bonds  11,000.00 Cash interest Payable (10,000…

Q: A bond with 18 years to maturity has an annual interest payment of $30. If the bond sells for its…

A: Let the face value be $1000 therefore price of the bond =$1000 using excel rate function  current…

Q: a $1,000 face value bond matures in 30 years and pays semi-annual coupon payments based on an annual…

A: A bond is a debt instrument issued by companies or the government to raise funds from the public and…

Q: A 30-year, $1,000 par value bond has an annual payment coupon of 7.5%.  The bond currently sells for…

A: The presentation of the interest expense and coupon payments for a bond is different, the interest…

Q: stevens copr bonds has an annual coupond payment of 7.25%. The bonds have a par value of $1000 and a…

A: Coupon rate = 7.25% Coupon amount (PMT)= 7.25% *1000= 72.50 Current price(PV) = 1125 Face value =…

Q: A $15,000, 5.5% bond is purchased 10.5 years before maturity to yield 8% compounded annually. If the…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly…

A: Par value (FV) = $ 1000 Coupon rate = 4.975% Semi annual coupon amount (C) = 1000*0.04975/2 = $…

Q: A 7 year bond with maturity value of $5504.1 and a yield rate of 5% was sold 15 months before…

A: Maturity value of the bond = $5,504.10 Yield rate = 5.00% Number of years = 7 years Purchase value…

Q: A $3000, 7.5% bond (payable semi-annually) is redeemable at par in 2 years and 6 months. If the bond…

A: Par Value or Face Value (P) – This is the actual money that is being borrowed by the lender or…

Q: A 12,000 5% bond with quarterly coupon is priced to yield 5% and redeemable at 110 at the end of 8…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: 1.Using annual compounding, find the prices of the following bonds with $1,000 par value: a. A 7%,…

A: Bond Pricing/bond valuation is a strategy for computing the reasonable cost or worth of a security.…

Q: AEP's outstanding bonds have a $1,000 par value, and they mature in 25 years. The yield to maturity…

A: Semiannual coupon payment is calculated using PMT function in Excel :PMT(rate, nper, pv, [fv],…

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: The ABC Corporation issues a 20-year, GH¢1000 bond with coupons j2 = 12%. The bond can be called, at…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable…

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

Q: Determine the present worth if the bond pays 12% compounded annually?

A: The present worth can be found using the PV Function in excel. PV = (RATE, NPER, -PMT, -FV, 0) RATE…

Q: Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays…

A: Formula: Present value of the bonds=Present value of the face value of the bonds+Present value of…

Q: Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest…

A: Par value  (FV) = $1000 Annual coupon amount (C) = 65/2 = $32.50 Years to maturity = 8 Years Number…

Q: A $6,500,000 issue of a 30-year bond, redeemable at par, offers 9.50% coupons payable semi-annually.…

A: Face value = $6,500,000 Maturtiy  =30 years ; But bond purchased 25 years before maturity So, time…

Q: Ultra Air's bonds have a 11-year maturity, a 10% coupon, paid semiannually, and a par value of…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: A P^(7),000 bond with interest at 8% payable semi annually is priced to yield 5%,m=12. Find the bond…

A: Value of bond refers to the present value of the bond. the present value of the bond is the…

Q: A $10000 bond with a coupon rate of 8.2% payable semiannually is redeemable after an unspecified…

A:

Q: A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What…

A: Purchase price of bonds will be present value of maturity value and present value of interest…