A $25,000 Government of Canada bond was issued with a 25-year maturity and a coupon rate of 8.92% compounded semiannually. Two-and-a-half years later the bond is being sold when market rates have increased to 9.46 % compounded semiannually . Determine the selling price of the bond along with the amount of premium or discount .
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- 2. A 10-year, P20,000 bond was issued at a nominal interest rate of 8% with semiannual compounding. Just after the fourth interest payment, the bond will be sold. Assume that an effective interest rate of 10 % % will apply, and calculate the price of the bond.Use simple interest to calculate the cash price of the following bond: 5,000 USD, 8% bond with semi-annual coupons payable April 1 and October 1. The bond is purchased on August 25 at 104.75 (%).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?
- Fingen's 14-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $1,100 and the market's required yield to maturity on a comparable-risk bond is 6 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?Fingen's 14year, $1000 par value bonds pay 14% interest annually. The market price of the bonds is $1090 and the market's required yield to maturity on a comparable- risk bond is 11%. A. Compute the bond's yield to maturity. B. Determined the value of the bond to you, given your required rate of return. C. Should you purchase the bond?Fingen's 11-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,110 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?
- Fingen's 18-year, $1 comma 000 par value bonds pay 9 percent interest annually. The market price of the bonds is $930 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?A $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of $22.50 each and matures in six years. What is the coupon rate?The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.3%, then this bond will trade at: A. a discount. B. a premium. C. par. D. none of the above
- Blossom, Inc., has issued a three-year bond that pays a coupon rate of 6.0 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.0 percent, what is the market value of the bond?Sheridan, Inc., has issued a three-year bond that pays a coupon rate of 7.0 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.6 percent, what is the market value of the bond? (Round answer to 2 decimal places, e.g. 15.25.) Market value eTextbook and Media %24Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,090 and the market's required yield to maturity on a comparable-risk bond is 8 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? What is your yield to maturity on the Fingen bonds given the market price of the bonds? __% (Round to two decimal places.)
