Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places.

Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.11%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 8R: a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it...

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

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#2
Assume a par value of $1,000. Caspian Sea plans to
issue a 11.00 year, semi-annual pay bond that has a
coupon rate of 8.11%. If the yield to maturity for the
bond is 7.79%, what will the price of the bond be?
Submit
Answer format: Currency: Round to: 2 decimal places.
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# 1 Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of 8.17%. If the yield to maturity for the bond is 7.56%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #2 Assume a par value of $1,000. Caspian Sea plans to issue a 18.00 year, semi-annual pay bond that has a coupon rate of 7.93%. If the yield to maturity for the bond is 8.13%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not submitted Attempts Remaining: Infinity # 3 Assume a par value of $1,000. Caspian Sea plans to issue a 26.00 year, semi-annual pay bond that has a coupon rate of 16.00%. If the yield to maturity for the bond is 16.0%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered
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Assume a par value of $1,000 Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has a coupon rate of 11.00%. If the yield to maturity for the bond is 11.0%, what wis the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded monthly? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (x: 0092434) G unanswered not submitted Attempts Remaining: Infinity unanswered not submitted Attempts Remaining: Infinity
Given: Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency Tax Rate 20% Trade Info: Settlement Date April 25, 2022 Face Amount 30,000,000.00 From the settlement date, when is the last coupon date of the bond? Answer is in format dd/mm/yyyY | 29/11/2021 29/05/2021 25/04/2022
Calculate the modified duration? Issue Price Yield to maturity Busco bond 16 11/20% maturing 3 July, 2025 (sinking fund debenture, rated AAA) 95 17.55% No. of years = 5 years (3 July 2030) One US Treasury bonds futures contract is a claim on $ 1,000,000 par value long-term US Treasury bonds.
a. Reset the Data Section to its initial values. The price of this bond is 1,407,831. What would it be if there were only 9 or 8 years to maturity? Use the worksheet to compute the bond issue prices and enter them in the spaces provided. Bond issue price (9 years to maturity) __________________ Bond issue price (8 years to maturity) __________________ b. Compare these prices to the bond-carrying values found in the effective interest amortization schedule you originally printed out in requirement 3. Explain the similarity. c. Click the Chart sheet tab. The chart presented shows the price behavior of this bond based on years to maturity. Explain what effect years to maturity has on bond prices. Check your explanation by trying 8% as the effective rate (cell E10) and clicking the Chart sheet tab again. Also try 9%. When the assignment is complete, close the file without saving it again. Worksheet. Modify the BONDS3 worksheet to accommodate bonds with up to 20-year maturity. Use your new model to determine the issue price and amortization schedules of a 2,000,000, 18-year, 10% bond issued to yield 9%. Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as BONDST. Hint: Expand both amortization schedules to 20 years. Expand the scratch pad to 20 years. Modify FORMULA1 in cell F17 to include the new ranges. Chart. Using the BONDS3 file, prepare a line chart that plots annual interest expense over the 10-year life of this bond under both the straight-line and effective interest methods. No Chart Data Table is needed. Put A23 to A32 in the Label format and then select A23 to A32, D23 to D32, and B40 to B49 as a collection. Enter all appropriate titles, legends, formats, and so forth. Enter your name somewhere on the chart. Save the file again as BONDS3. Print the chart.
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