A corporate bond has 20 years to maturity, a face value of $1,000, a coupon rate of 5% and pays interest semiannually. The annual market interest rate for similar bonds is 3%. What is the value of the bond?
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A corporate bond has 20 years to maturity, a face value of $1,000, a coupon rate of 5% and pays interest semiannually. The annual market interest rate for similar bonds is 3%.
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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?A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?A corporate bond has 18 years to maturity, a face value of $1,000, a coupon rate of 5.3% and pays interest semiannually. The annual market interest rate for similar bonds is 3.1%. What is the value of the bond?
- A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 5.1% and pays coupon twice a year. The annual market interest rate for similar bonds is 3%. What is the price of the bond (in $)?A 30-year bond pays interest semiannually, has a par value of $1,000, a coupon rate of 15%, and has 20 years until maturity. Bonds of similar risk are discounted at a market rate of 7%. What is the intrinsic value of the bond?A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable semi-annually, and 20 years remaining to maturity. The market interest rate for bonds of similar risk and maturity is currently 8.5% per annum.Required:i. What is the coupon payment of the bond? ii. What is the present value of the bond? iii. If the coupon payment is payable annual (based on the same information), what is the value of the bond?
- A corporate bond with annual coupons has a face value of $1,000, 4 years to maturity and a coupon rate of 8%. The market interest rate for similar bonds is 0.095. What is the bond's duration?A bond has the following features: Coupon rate of interest (paid annually): 6 percent Principal: $1,000 Term to maturity: 12 years What will the holder receive when the bond matures? Principal or All coupon payments? If the current rate of interest on comparable debt is 9 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $ Would you expect the firm to call this bond? Why? -Yes or No, since the bond is selling for a discount or premium? If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for twelve years if the funds earn 9 percent annually and there is $120 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar. $A company's bond with a face value of $1,000 currently sells for $1,056.17. The bond matures in 8 years. The discount rate for the bond is 9%. What is the coupon rate of the bond if coupons are paid semiannually?
- What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell?A bond has a $1,000 face value, a market price of $1,045, and pays interest payments of $74.50 every year. What is the coupon rate?A 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?