A $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Gregory purchased this bond when there were 9 years left to maturity and when the market interest rate was 6.00% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 5.50% compounded semi-annually.    a. Calculate the purchase price of the bond. b.  Calculate the amount that Gregory received when he sold the bond

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A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: Betty bought a 9% four-year bond with a par value of $100. The bond pays the coupon payments…

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A: Here,

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A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

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A: Quarterly bond interest payment = Face value of bond * Interest rate / 4 quarters in a year

Q: Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield…

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A:

Q: John purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would…

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Q: Albert purchased a bond with exactly 20 years to redemption. The bond pays annual coupons, in…

A: N = 20 Face Value = 100 Annual coupons Coupon = Coupon Rate * Face Value = 5℅*100 = 5 Yield = 6℅

Q: As part of your inheritance, you received a bond that will pay interest of php$700 every 6 months…

A: The term bonds refer to the debt instruments that are issued with a motive to raise debt from the…

Q: gwen purchased a $10,000 face value bond with a coupon rate of 4% payable semiannually. on the…

A: A bonds present value is calculated by discounting all its future cashflows by the discount rate.

Q: Exactly two years ago today James purchased a ten-year $100,000 bond and the price he paid was P=…

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Q: Zuber Issa owns ordinary (Asda Stores Ltd.) bonds that sell for $889.49 and pay coupons twice per…

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Q: Assumed that Mr. Bento decided to purchase a corporate bond that pays 7 percent coupon payment. The…

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A:

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