A $27,000 bond with interest at 5.3% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.6% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.
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- A $1000, 8.5% bond with interest payable annually is purchased six years before maturity to yield 10.5% compounded annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule. Please show calculationsa 29000 bond with interest at 5.1% payable semi annually and redeemable ar par is bought two years before maturity to yield 7.8% compunded semi annually. complete the premium or discount and the purchase price and construct the appropriate bond scheduleA 17-year bond pays interest of $45 every six months and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 7.82 percent. Given this information, determine the current price of this bond. $1,103.15 O $1,095.23 $1.080.83 O $1,109.94 O $1,087.79
- A $26,000 bond with interest at 5.5% payable semi-annually and redeemable at par is bought two years before maturity to yield 9.2% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule. The is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in three years if the bond's YTM is 10 percent and interest is paid semiannually. Calculate this bond's duration.Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in four years if the bond’s YTM is 10 percent and interest is paid semiannually. Calculate this bond’s modified duration. Assuming the bond’s YTM goes from 10 percent to 9.5 percent, calculate an estimate of the price change.
- The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. Determine the present value of the bonds at issuance.Determine the price of a $1.7 million bond issue under each of the following independent assumptions: Maturity 10 years, interest paid annually, stated rate 5%, effective (market) rate 7%. Maturity 10 years, interest paid semiannually, stated rate 5%, effective (market) rate 7%. Maturity 10 years, interest paid semiannually, stated rate 7%, effective (market) rate 5%. Maturity 20 years, interest paid semiannually, stated rate 7%, effective (market) rate 5%. Maturity 20 years, interest paid semiannually, stated rate 7%, effective (market) rate 7%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1.)Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to maturity is 10 percent and interest is paid semiannually.Calculate the duration of a 6 percent, $1,000 par bond maturing in three years if the yield to maturity is 10 percent and interest is paid semiannually.
- Determine the price of a $1.3 million bond issue under each of the following independent assumptions: Maturity 11 years, interest paid annually, stated rate 10%, effective (market) rate 12%. Maturity 11 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%. Maturity 11 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%. Maturity 9 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%. Maturity 9 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%.A $26,000 bond with interest at 5.5% payable semi-annually and redeemable at par is bought two years before maturity to yield 5.8% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule. The is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) hA $3000, 7.5% bond (payable semi-annually) is redeemable at par in 2 years and 6 months. If the bond is purchased to yield 8.1% compounded semi-annually, determine the purchase price of the bond. Draw a timeline in your notes to help you practice!
