A bond issue had the following details: $1.00
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![A bond issue had the following details:
• Face Value - $180,000
• Term - 5 years, interest paid quarterly
• Coupon Rate - 8%
• Market Rate - 12%
What is the price of this bond?
$209,432.58
$153,220.55
$180,000.00
$154,045.61](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb59d7882-5e1a-4e96-8617-c38e97c9150c%2F194b608d-5e08-4369-9c04-e1d62708131c%2F4nblktc_processed.png&w=3840&q=75)
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- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. a. What is the current selling price of the bond?b. What is the current yield of this bond?Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. What is the current selling price of the bond? What is the current yield of this bond? a. b. (
- A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have received in payment from the bond issuer after the bond has reached its maturity date of one year? $200 $406 $6 $206Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity. Assume the par value of the bonds is $1,000. Approximate Yield to Maturity? Exact Yield to Materity?Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and yield to maturity is 12%. The bond has par value of $1,000. What is the current bond price? а. $1,136.27 b. $876.11 c. $887.00 d. $885.15
- What is the value of the following semi-annual bond? years face value: maturity: coupon rate: discount rate: $1,000 9.5 7% 7%Given the following information, what is the coupon rate of the bond? Years to maturity: 12 Par value: $1,000 Interest rate: 10% Current market price: $1,150 Coupon payments are made semiannually. Select one: O a. .1217 O b. .1109 O c. 0911 Od. 1043You have the following information regarding an annual bond. What is the modified duration of this bond? Payment $40 YTM 6.5% Maturity (in years) 19 Par value $1,000
- A bond: pay $75 each year in interest, and a $1,000 payment at maturity. The $1,000 is called? A) couponB) face valueC) discountD) yieldA four-year discount bond has a face value of $1,000 and a price of $925. What is the yield to maturity on the bond?Use the following tables to calculate the present value of a $791,000, 5%, 6-year bond that pays $39,550 ($791,000 × 5%) interest annually, if the market rate of interest is 6%. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83962 0.81630 0.75131 4 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 8 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391 0.55839 0.50835 0.38554 Present Value of Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458 0.90909 2 1.85941 1.83339 1.80802 1.73554 3 2.72325 2.67301 2.62432 2.48685 4 3.54595 3.46511 3.38721 3.16987 5…