A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. It also pays $60 per year as an annual interest payment. What is the bond's price? Assume annual compounding. Round your answer to two decimal places. Do not include the dollar sign or negative sign (if applicable).
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A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. It also pays $60 per year as an annual interest payment. What is the
Assume annual compounding. Round your answer to two decimal places. Do not include the dollar sign or negative sign (if applicable).
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- The interest rate on one-year Treasury bonds is 0.8 percent, the rate on two-year T-bonds is 0.9 percent, and the rate on three-year T-bonds is 1.0 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. %The interest rate on one-year Treasury bonds is 1.1 percent, the rate on two-year T-bonds is 1.3 percent, and the rate on three-year T-bonds is 1.5 percent. Using the expectations theory, compute the expected one-year interest rate in the second year (Year 2 only). Round your answer to one decimal place. _________ % Using the expectations theory, compute the expected one-year interest rate in the third year (Year 3 only). Round your answer to one decimal place. _________ %For a one year bond of $2,300 at a simple interest rate of 10% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is s (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $. (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)
- For a two year bond of $2,200 at a simple interest rate of 10% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)Compute the specified quantity. A 7 year bond costs $30,000 and will pay a total of $2,000 in interest over its lifetime. What is its annual interest rate r (as a percent)? (Round your answer to three decimal places.) r =For a three year bond of $2,200 at a simple interest rate of 9% per year, find the semiannual interest payment and the total interest earned over the life of the bond. The semiannual interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.) The total interest on the bond is $ (Simplify your answer. Type an integer or a decimal. Round to the nearest cent as needed.)
- Compute the specified quantity. A 7 year bond costs $30,000 and will pay a total of $3,600 in interest over its lifetime. What is its annual interest rate r (as a percent)? (Round your answer to three decimal places.)Interest rates determine the present value of future amounts. (Round to the nearest dollar.) Read the requirements. View the Present Value of $1 table. View the Future Value of $1 table. View the Present Value of Ordinary Annuity of $1 table. View the Future Value of Ordinary Annuity of $1 table. Requirement 1. Determine the present value of seven-year bonds payable with face value of $91,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.) Present Value 91000 When market rate of interest is 12% annually C When market rate of interest is 14% annually Requirement 2. Same bonds payable as in requirement 1, but the market interest rate is 16%. (Round intermediary calculations and final answer to the nearest whole dollar.) Present Value When market rate of interest is 16% annually Requirement 3. Same bonds payable as in requirement 1, but the market interest…A bond has a semi-annual coupon payment of $16.6 . What is the coupon RATE? Convert to a percent. Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. (NOTE: the coupon RATE is given annually, yet the coupon PAYMENT is semi-annual.) Answer:
- You will receive $100 from a savings bond in 4 years. The nominal interest rate is 7.90 %. a) What is the present value of the proceeds from the bond? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b) If the inflation rate over the next few years is expected to be 2.90%, what will the real value of the $100 payoff be in terms of today's dollars? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c)What is the real interest rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. d)Calculate the real payoff from the bond [from part (b)] discounted at the real interest rate [ from part (c)]. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.Assume that a 5-year bond pays interest of $90 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 10 percent. Given this information, determine the duration of this bond. Enter your answer in decimal format, truncated to 2 decimal places. For example, if your answer is 7.1186 years, enter "7.11".show the step by step solutions and what required it is
