A bond matures in 25 years, but is callable in 11 years at 123. The call premium decreases by 2 percent of par per year. If the bond is called in 16 years, what percent of face value will you receive? (Omit the "%" sign in your response.) Bond call price in 16 years %
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A bond matures in 25 years, but is callable in 11 years at 123. The call premium decreases by 2 percent of par per year. If the bond is called in 16 years, what percent of face value will you receive? (Omit the "%" sign in your response.)
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- A bond matures in 25 years but is callable in 10 years at 125. The call premium decreases by 3 percent of par per year. If the bond is called in 18 years, how much will you receive? Bond call price in 18 years %A bond matures in 25 years but is callable in 10 years at 120. The call premium decreases by 2 percent of par per year. If the bond is called in 14 years, how much will you receive?FYI bonds pay $40 in interest every six months and will mature in 10 years. a. Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively. b. Explain the impact on price if the required rate of return decreases.
- A 10-year bond, with a par value equaling $1,000, pays 7% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis. PRESENT YOUR ANSWER ROUNDED WITH ZERO DECIMAL PLACES Respuesta:What is the market price of a $1,000, 8 percent bond if comparable market interest rates drop to 6 percent and the bond matures in 15 years?A $5,000 face value strip bond has 12 years remaining until maturity. If the market rate of return is 4.00% compounded semiannually, what is the fair market value of the bond? Your Answer: Answer
- An annual payment bond has a 10% required rate of return.Interest rates are expected to decrease 71 basis points.If the bond's duration is 12 years.what is the percentage change in bond's price?(write the answer in percentage and round it to two decimals)Calculate the current price of the following bonds: a) Bond A has a face value of $22,000 and matures in 25 years. The bond makes no payments for the first seven years, then pays $1,400 every six months over the subsequent twelve years, and finally pays $1,600 every six months over the last six years. The required rate of return on this type of bond is 12% compounded semi-annually. please answer using formulasConsider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 8 percent. How much would you pay for the bond if . the coupon rate is 6 percent and the remaining time to maturity is 10 years? the coupon rate is 10 percent and the remaining time to maturity is 15 years?
- Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. b. What is the total (6-month) rate of return on the bond? Complete this question by entering your answers in the tabs below. Required A Required B Find the bond's price today and six months from now after the next coupon is paid. Note: Round your answers to 2 decimal places. Current price Price after six months $ $ 1,052.42 1,044.52Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 8 percent. How much would you pay for the bond if a. the coupon rate is 6 percent and the remaining time to maturity is 10 years?A $1000 bond has 15 more years to maturity, an interest rate of 6%, and it pays interest semi-annually. If the current market interest rate is 5%, what is the price of the bond?
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