A bond has a Par value of $ 1000, a 9% coupon rate and four years to maturity. The bond makes annual interest payments. The bond was selling at $ 1123.50. If the bond can be called two years from now, at a yield-to-call of 7%, calculate the call price the investor will be paid?

Q: Consider a level coupon bond that pays $500 every six months (beginning in the next period) for 3…

A: Level cash flow from years 1 to 3: $500Additional deposit in 3 years: $1000Interest rate: 10%

Q: What is the duration of the following bond: $1,000 par value, 6% annual coupon, 4 years to maturity,…

A: Variables in the question:Par value=$1000Annual coupon=6% (assumed paid annually)N=4 yearsYTM=6.5%

Q: Assume you have a two-year maturity coupon bond with a 10,000 SEK par value and a semi-annual coupon…

A: A debt instrument that allows the issuer to raise funds and obliges him to pay a fixed periodic…

Q: A bond had a $1000 par value, 9 years to maturity, an 11% annual coupon, and sells for $1150. What…

A: Bonds refer to instruments used by the issuing company to raise debt capital from non-traditional…

Q: A mortgage bond issued by Automation Engineering is for sale for $8,700. The bond has a face value…

A: Introduction Yield To maturity: Simply means the rate of return the investors can expect on a bond…

Q: what is the bond's yield to maturity?

A: Call price = Par value + call premium  = $1000 + $1000*10%  = $1100

Q: As a Financial Analyst of Morgan Investments Co., you are going to make a business investment…

A: The NPV of a project refers to the cumulative value of its cash flows discounted to the present. The…

Q: A firm has a bond issue with face value of $1,000, a 7% coupon rate, and nine years to maturity. The…

A: The price of the bond (PV) is $1,067.89. The face value of the bond (FV) is $1,000. The maturity…

Q: A bond sells for $900 and is expected to trade for $1,000 in one year’s time. If the return on the…

A: Current Price = $900 Return on Bond(r) = 12% Price in one year =$1000 Let Coupon amount = X

Q: A bond is issued with a coupon of 6% paid annually, a maturity of 38 years, and a yield to maturity…

A: Here's how to calculate the rate of return for the investor who purchases the bond for $679.28 and…

Q: A bond with 3 years to maturity has a yield to maturity of 6%. If this bond has a coupon of 8%, paid…

A: Bond Price = whereFV = Par value or face value = $1,000C = Periodic coupon = semi annual coupon =…

Q: You purchased a 12-year Treasury bond with a 7 percent coupon rate. The bond’s asked yield is…

A: Price of bond = Clean price + Accrued interest.

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Bond price is the present discounted value of future cash stream generated by a bond. It refers to…

Q: You're considering a bond with a maturity of 10 years, face value of 1,000. The surface interest…

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

Q: On the issue date, you bought a 15 year maturity, 6.55% semi - annual coupon bond. The bond then…

A: A bond refers to an instrument the issuing organization uses to raise debt capital from…

Q: On the issue date, you bought a 30-year maturity, 5% semi-annual coupon bond. The bond then sold at…

A: Calculation of realized return: Answer: Realized rate of return is 9.30%

Q: bond with exactly 28 years remaining until maturity with a par value of $1,000 and a coupon rate of…

A: Current yield shows how much is coupon payment of bond against the price of bond and it is related…

Q: Callaghan Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a…

A: The current price of a bond is the present value of its expected future cash flow which is…

Q: Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on…

A: Price of bond = [ PVAIF (Yield rate , periods) * Interest ] + [ PVAF (Yield rate , Period) *…

Q: A 30-year bond has a par value of $1,000, a coupon rate of 9% with semiannual coupon payment, and a…

A: The computation of current price of bond as follows: Hence, the current price of bond is $757.58.

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: For bond L, it is given that;Par value of the bond is $1000Yield to maturity is 5%Time period is 17…

Q: Suppose a 5% coupon, 4 year bond is selling for $990. The face value is $1000. The coupon is paid…

A: Compound = 6 months = Semiannually = 2Coupon Rate = 5 / 2 = 2.5%Time = nper = 4 * 2 = 8 Price of…

Q: onsidering the purchase of a $1,000 par value bond with a coupon rate of 5% (with interest paid…

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

Q: As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 21 years,…

A: We require to calculate the bond value  in one year i.e. after one year in this question from…

Q: has a coupon rate of 8%, face value of $100, and 3 years to maturity. If its yield to maturity is…

A: Given information :

Q: what is the​ bond's current​ price?

A: PV = [ S CFt/(1 + i)t] + [FV / (1 + i)t]

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Bonds are debt instrument that offers fixed interest. The bond interest is called the coupon rate.…

Q: A bond has just been issued. The bond will mature in 3 years.  The bond’s annual coupon rate is 12%…

A: Bonds refer to the financial instruments which are raised by the institutions for raising funds from…

Q: A bond offers a coupon rate of 13%, paid semiannually, and has a maturity of 9 years. If the current…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: You purchase a bond with a coupon rate of 7.6 percent, a par value of $1,000, and a clean price of…

A: Accrued interest on a bond is the interest earned from the last coupon payment. Clean price of the…

Q: uppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face…

A: Here the bond has 10 years till maturity. Hence immediately after making first coupon payment it…

Q: A 3-year coupon bond has a face value of $1000 and a coupon rate of 4%. Coupons are paid…

A: >Please refer to the below spreadsheet for calculation and answer. Cell reference was also…

Q: Suppose you purchase a five-year, 12 percent coupon bond (paid annually) that is priced to yield 10…

A: Bonds are the debt instruments which are lent by the government or a corporation which gives fixed…

Q: A bond with 14 years to maturity and a coupon rate of 5% has a par, or face, value of $19,000.…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: You buy a semiannually paying coupon bond with a face value of $1,000 and a coupon rate of 8%. The…

A: Given, Face value of bond is $1000 Coupon rate is 8% Time to maturity is 20 years.

Q: Titan Mining Corporation has 8.3 million shares of common stock outstanding, 305,000 shares of 3.9…

A: A combination of long-term debts and different types of stocks to raise funds for the business…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 7% annual…

A: Interest rate is the rate under which the cost of financing taken place. For the purpose of…

Q: A bond has a $1000 par value, 12 years to maturity, a 5% annual coupon and currently sells for $900.…

A: Par value (F) = $1000 Years to maturity (n) = 12 years Coupon (C) = 5% of $1000 = $50 Let r = YTM

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: The price today of a 4-year coupon bond with annual coupons, a coupon rate of 6%, and a face value…

A: A bond is a kind of debt security issued by the government and private companies to the public for…

Q: what will be the approximate price of this bond at the end of the second

A: The yield to maturity indicates the overall return an investor can anticipate from a bond if they…

Q: You buy an 8.6% coupon, paid annually, 5-year maturity bond for $960. A year later, the bond price…

A: Yield to maturity is the rate of return that the bondholders will get if they invest in bond and…

Q: A bond with 8 years to maturity has an annual coupon rate of 5.1% and pays interest semiannually.…

A: The objective of this question is to calculate the flat price of a bond. The flat price of a bond is…

Q: You have a bond with a current bond price of $900 and a semiannual coupon of $50. If the YTM on this…

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

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.