A $1000, 8.5% bond with interest payable annually is purchased six years before maturity to yield 10.5% com annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schem The purchase price of the bond is $914. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Construct the bond schedule. (Round to the nearest cent as needed. Do not include the $ symbol in your ans Schedule of Accumulation of Discount Payment Coupon interval 0 MEELE Interest on book Discount accumulated Book value Discount balance

A $1000, 8.5% bond with interest payable annually is purchased six years before maturity to yield 10.5% com annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schem The purchase price of the bond is $914. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Construct the bond schedule. (Round to the nearest cent as needed. Do not include the $ symbol in your ans Schedule of Accumulation of Discount Payment Coupon interval 0 MEELE Interest on book Discount accumulated Book value Discount balance

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A 3.9% bond pays interest semiannually. Its YTM is 4.9%. The Equivalent Annual Yield (EAY) on this bond is ____%. Refer to Lecture 35-36 notes as needed. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.
Essex Biochemical Company has a $1,000 par value bond outstanding that pays 10 percent annual interest. The current yield to maturity on such bonds in the market is 8 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for the maturity dates: Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. a: 30 years b: 16 years c: 1 years
Compute the selling price of 8%, 10-year bonds with a par value of $310,000 and semiannual interest payments. The annual market rate for these bonds is 10%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations.
Applied Software has a $1,000 par value bond outstanding that pays 12 percent interest with annual payments. The current yield to maturity on such bonds in the market is 7 percent. Use Appendix B and Appendix D. Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Price of the bond a. 30 years $ b. 15 years $ c. 1 year $
A 25-year bond issue of 4,800,000 and bearing interest at 3% payable annually is sold to yield 2.6% compounded semi-annually. What is the issue price of the bonds? The purchase price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
5. Compute the price of $86,708,402 received for the bonds by using the Present value at compound interest, and Present value of an annuity. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount 29,058,178 X Present value of the semi-annual interest payments 57,650,184 X Proceeds of bond issue 86,708,402
Complete the below table to calculate the price of a $1 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1): 1. Maturity 10 years, interest paid annually, stated rate 10%, effective (market) rate 12%.2. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%.3. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.5. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%.
A bond has a maturity value of $ 3000 and is paying discrete compound interest at an effective annual rate of 3 percent. Determine the following at a time four years before the bond reaches maturity value. 1- Discount. 2- Discrete compound rate of effective interest which will be received by a purchaser if the bond were obtained for $ 2200 3. Present worth for the case where the effective annual bond interest is 5 percent compounded continuously
am. 113.
Calculate the purchase price of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Maturity date Purchase date Coupon rate (%) Market rate (%) Dec 15, 1992 Dec 15, 2022 June 15, 2010 5.40 7.2 Assume that Bond interest is paid semiannually. The bond was originally issued at its face value. Bonds are redeemed at their face value at maturity. Market rates of return are compounded semiannually. Bond price $
I need help using the present value of a bond calculator at https://www.thecalculator.co/finance/Bond-Price-Calculator-606.html. Approximate the present value for the following $1,000 bonds. Note: Round answers to 2 decimal places.
Calculate the Macaulay duration of an 8%, $1,000 par bond that matures in three years if the bond's YTM is 12% and interest is paid semiannually. I have the answer, 2.71 Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places. Assuming the bond's YTM goes from 12% to 10.5%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter a negative value, if any. This is the question I'm struggling to find.

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