A three-year bond has 8.0% coupon rate and face value of $1000.  If the yield to maturity on the bond is10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments

Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum .…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: Consider a bond with 15 years to maturity, a coupon rate of 13% that is paid annually, a face value…

A: Face value = $1000 Coupon rate = 13% Coupon amount = 1000*0.13 = $130 Yield to maturity = 15% Years…

Q: A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded…

A: Solution:- Yield-to-maturity means the rate of return earned by bond holder, if the bond is hold…

Q: A bond has an annual coupon rate of 4.3%, a face value of $1,000, a price of $1,186.68, and matures…

A: COUPON RATE = 4.3% FACE VALUE = $1000 PRICE = $1186.68  N = 10

Q: The current price of an annual coupon bond is 110. The derivative of the price of the bond with…

A: Current price=$110Current derivative price respect to YTM=-$270

Q: A bond with 3 years to maturity has a yield to maturity of 6%. If this bond has a coupon of 8%, paid…

A: Bond Price = whereFV = Par value or face value = $1,000C = Periodic coupon = semi annual coupon =…

Q: A 12-year, semiannual coupon bond is priced at $1,102.60. The bond has a $1,000 face value and a…

A: Here,ParticularsValuesTime to maturity12.00Current price of the bond (PV) $ 1,102.60Face value of…

Q: what is its yield-to-maturity?

A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…

Q: What is the yield to maturity (expressed as APR with semi-annual compounding) for a three-year bond…

A: Compound = Seminannual = 2Time = t = 3 * 2 = 6Coupon Rate = c = 10/2 = 5%Face Value = fv =…

Q: The price of a 20-year bond that has a coupon rate of 8% is $1100.The bond pays semiannual coupon.…

A: Calculate the semiannual coupon payment:Coupon rate = 8%Since payments are semiannual, divide the…

Q: A 12.5 percent semiannual coupon bond matures in 7 years.  The bond has a face value of $1000 and a…

A: YTM is the return to investor if he carry the bond till the maturity. In other words, sum of all…

Q: Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on…

A: Price of bond = [ PVAIF (Yield rate , periods) * Interest ] + [ PVAF (Yield rate , Period) *…

Q: A 20-year bond has an 7.0% coupon rate and face value of $1000. The yield to maturity is 10%. What…

A: The problem involves bond prices and bond yield.  bond's price is the sum of the present value of…

Q: You are considering a bond with a coupon rate of 10% per annum. Coupons are paid semiannually. The…

A: Computation:

Q: A 3-year coupon bond has a face value of $1000 and a coupon rate of 4%. Coupons are paid…

A: >Please refer to the below spreadsheet for calculation and answer. Cell reference was also…

Q: Suppose a five-year bond with an 8% coupon rate and semi-annual compounding is trading for a price…

A: Variables in the question:FV=£ 1000 (assumed)N=5 yearnper=5 year *2=10Coupon rate=8%Semi-annual…

Q: You are given a ten-year bond which is redeemed at par. The bond pays 6% annual coupons and an…

A: Here,Annual Coupon Rate is 6%Yield to Maturity is 7%Time Period is 10 yearsPar Value is $1,000…

Q: Using the bond's yield rate, calculate the Macaulay duration of the bond in years.

A: The Macaulay duration of a bond represents the weighted average time until each cash flow is…

Q: what will be the approximate price of this bond at the end of the second

A: The yield to maturity indicates the overall return an investor can anticipate from a bond if they…

Q: You purchase a bond with a coupon rate of 5.9 percent and a quoted price of $1,053. If the next…

A: Given:Invoice price = $1,053Par value = $1,000Coupon rate = 5.9%

Q: A two-year amortizing bond has a coupon rate of 4% and pays its coupons semi- annually. Coupon…

A: A bond is a debt instrument used to raise capital. It is marketable security, i.e., it can be traded…

Q: A 5.25 percent coupon bond with 14 years left to maturity can be called in four years. The call…

A: Yield to call of a bond means the return of the bond until its call. In this case, the period of…

Q: The current yield on the bond is  b) The yield to maturity of the bond is

A: Current Yield on Bond: It is estimated by dividing the annual coupon payments by the price of the…

Q: A zero - coupon bond has a face value of R10000.it matures in 13years. The yield to maturity is 4.7…

A: The objective of the question is to calculate the present value of a zero-coupon bond. A zero-coupon…

Q: An investor buys a 4.7% annual payment bond with 8 years to maturity. The bond is priced at a yield…

A: The sensitivity of a bond's whole price (including accrued interest) to changes in the bond's…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: