A 3-year 10% annual coupon bond yields 5%. The dollar price for the face value of $1000 is $1,136.1624. The Macaulay duration of the bond is 2.7525. The Modified Duration of the bond is equal to: years (4 decimals).

Q: A bond pays annual interest. Its coupon rate is 9%. Its value at maturity is $1,000. It matures in 4…

A: Here,FaceValue of Bond is $1,000Coupon Rate is 9%Yield to Maturity is 6%Time to Maturity is 4 years

Q: Large Industries bonds sell for $1,065.95. The bond life is 9 years and the yield to maturity is 7%.…

A: Given, The price of bond is $1065.95 Life of bond is 9 years Yield to maturity is 7%.

Q: omack Company's bonds have a 9-year maturity, a 11% coupon, paid semiannually, and a par value of…

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

Q: The 6.5 percent bond of ABCO has a yield to maturity of 6.82 percent. The bond matures in seven…

A: Solution:Coupon payment means the amount of interest payments received by bond holders after each…

Q: A bond has a 5% coupon rate. The coupon is paid semiannually, and the last coupon was paid 35 days…

A: The computations as follows: Coupon is paid semiannually then; payment is every 182 days.

Q: Suppose a five-year, $1,000 bond with annual coupons has a price of $899.96 and a yield to maturity…

A: Bond refers to the financial instrument issued by financial institutions or banks for providing…

Q: According to Financial Management approaches, the financial manager's objectives are stated as and…

A: As per Financial Management Approach, The financial manager objective is wealth and profit…

Q: annual coupon bond yie e yield to call is ..........

A: Answer :Face value = 100 Call price = 101 Coupon = 100*8% = 8 Years = 1 year Calculate Yield to call…

Q: (Yield to maturity) Assume the market price of a 5-year bond for Margaret Inc. is $1,025, and it has…

A: Market price of bond = $1025Face value = $1000Coupon rate = 8%Maturity = 5 yearsTo find: YTM of the…

Q: A 12-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.00% (3.000% of face…

A: Face value of the bond = $1,000 Coupon rate = 6% Semi annual coupon rate = 6%/2…

Q: The face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling…

A: Given: Coupon rate = 8.5% Face value = $1,000 Years =5 Current price = $943.15 Yield to maturity =…

Q: The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years.…

A: A bond is a fixed-income security that pays regular fixed periodic payments to the bond holder and…

Q: Kinight, Inc., has issued a 3 year bond that pays a coupon rate of 6.10% coupon payments are made…

A: Excel Spreadsheet:

Q: 0-year 8% annual coupon bond with a face value of 1000 is purchased. At the time of purchase, the…

A: Price of bond is the present value of coupon payments plus present value of par value of the bond…

Q: Suppose a five-year, $1,000 bond with annual coupons has a price of $901.55 and a yield to maturity…

A: The coupon rate can be computed by using goal seek feature of excel. Firstly enter the formulas as…

Q: Suppose a firm is issuing 10,000 bonds. Each bond has a face amount of $950, a stated rate of 7.5%,…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: Blossom, Inc., has issued a three-year bond that pays a coupon rate of 6.0 percent. Coupon payments…

A: Bonds are a kind of debt financial instrument which is a fixed-income investment vehicle that…

Q: Use simple interest to calculate the cash price of the following bond: 5,000 USD, 8% bond with…

A: Cash price of bonds = Face value of bonds * Purchase price (%)

Q: A ten-year USD100 par value bond pays 8% coupons semiannually. The bond is priced at USD118.20 to…

A: Bond value is the current price or the present value of the bond. This can be determined by…

Q: A bond has $ 52000 face value and the coupon rate of the bond is 3.1 % (APR). The YTM of the bond is…

A: Face Value = 52,000 Coupon Rate = 3.1% YTM = 4.3%   Coupon payment every 4 months N = 9 (3 years…

Q: A seven-year par value bond has a coupon rate of 9% (paid annually) and a modified duration of A. 7…

A: Modified duration is a financial metric used to measure the sensitivity of a bond's price to changes…

Q: bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to…

A: Given information :

Q: bond

A: a. Using the given information, we can calculate the value of the bond using the following formula:…

Q: A bond with 9 years left to maturity is trading for $962.  It pays coupons semiannually.  Its YTM is…

A: Semi annual: Bond  Yields maturity = 9  Current stock = 962 YTM = 3.50%

Q: A bond with 6 years left to maturity is trading for $975.  It pays coupons semiannually.  Its YTM is…

A: Face Value (FV) of the bond = $1000 Bond price (PV) = $975 Number of years to maturity =6 Number of…

Q: A 9-year bond has a face value of £100. The bond pays coupons semi-annually at a rate of 4%. The…

A: Step 1 Bond Price Bond price is the discounted present value of the future cash flow that a bond…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.