Assume that you purchase a 30-year stripped bond with a $100,000 face value. The current bond price is $9,937.73 and the yield is 8%. Calculate the interest revenue during the first year of holding the bond. Calculate amounts to nearest dollar, no S. Answer:

Q: A $9,000 bond matures in 10 years and pays 2 percent interest twice a year. If the bond sold for…

A: Actual investment rate refers to the rate of return generated by the investment made by the issue of…

Q: Logan purchased a $1,000 par value bond. The amount of each annual interest payment is $82.50. If…

A: Formula Current yield = Annual coupon amount/(Par value+Premium) Where Annual coupon amount  =…

Q: A newly issued 10-year maturity, 5% coupon bond making annual coupon payments is sold to the public…

A: Given,Selling price of bond = $900Coupon Rate = 5%Time period = 10 year  Calculation of Yield to…

Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…

A: A bond is borrowing security that is issued by the company in order to raise funds from the market…

Q: For a two year bond of $2,200 at a simple interest rate of 10% per year, find the semiannual…

A: Bonds are debt instruments issued by companies. The issuing company pays coupons or interests to the…

Q: Compute what your bonds are worth. Round all calculations to 2 decimals.

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: a) What is the value of a 10 year, 8.2% coupon bond with semiannual coupons.Assume the par value of…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: An investor purchases a 10-year, $5,000 face value bond that pays semiannual interest at annual rate…

A: Detailed explanation:1. Semiannual Coupon Rate Calculation:Semiannual Coupon Rate=210%​=5% 2. Coupon…

Q: calculate the flat price of the bond if is sold 3 years and 2 months after issue.

A: Bond valuation determines the present value of a bond's future cash flows, which include the…

Q: An investor buys a 5% annual payment bond with three years to maturity. The bond has a…

A: Macaulay duration refers to the weighted time required to collect all coupon payments till the…

Q: You will be paying $9,500 a year in tuition expenses at the end of the next two years. Bonds…

A: ABCDECalculation1Time012total2cash flow$9,500$9,500$19,0003present…

Q: se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays…

A: The present value of the bond is the future inflows from bonds discounted at the market rate of…

Q: Calculate the current price of the following bonds: a) Bond A has a face value of $22,000 and…

A: The value bond is present value of coupon payment and present value of par value.

Q: Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly…

A: Par value (FV) = $ 1000 Coupon rate = 4.45% Semi annual coupon amount (C) = 1000*0.0445/2 = $ 22.25…

Q: A bond with a face value of $2,000 pays half-yearly interest at a rate of 8% pa compounded…

A: Bond compounding semi-annually: In this case, the bond has a face value of $ 2000 that pays…

Q: What is the amount of premium/discount for a bond that has 4 years till it matures? The face value…

A: The objective of this question is to calculate the amount of premium or discount for a bond that has…

Q: Chuck's of Czechia is selling a perpetual bong that will provide the bondholder with a $50 / year…

A: Perpetual Bond is a bond with no maturity period of the bond and hence no redemption value. In such…

Q: The Saleemi​ Corporation's $1,000 bonds pay 6 percent interest annually and have 14 years until…

A: Annual coupon interest payments = 6% of 1000 = 60 14 such coupons will be paid.

Q: Determine the price of a $220,000 bond issue under each of the following independent assumptions:…

A: Issue price of bond means the price at which the bond is issued. It can be issued at par, premium or…

Q: A bond with 18 years to maturity has an annual interest payment of $30. If the bond sells for its…

A: Let the face value be $1000 therefore price of the bond =$1000 using excel rate function  current…

Q: 1. A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year.…

A: A bond is a debt instrument where an institution can raise capital by borrowing (in form of bond…

Q: A 20-year bond has a face amount of $1000 and 8% quarterly coupons. The redemption value is $1050…

A: " Since you asked multiple sub-parts questions, we will answer the first three sub-parts for you as…

Q: For a three year bond of $2,200 at a simple interest rate of 9% per year, find the semiannual…

A: For a three year bond of $2200 at a simple interest rate of 9% per year

Q: You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65 every 6 months. If…

A: A bond refers to an instrument issued by companies to raise debt capital from their investors. A…

Q: A $15,000, 5.5% bond is purchased 10.5 years before maturity to yield 8% compounded annually. If the…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: an investor purchasea a 20-year, 1,000 par value bond that pays semiannual interest of $40. If the…

A: Current market rate of bond can be calculated by discounting future cash flows or internet income…

Q: Use simple interest to calculate the cash price of the following bond: 5,000 USD, 8% bond with…

A: Cash price of bonds = Face value of bonds * Purchase price (%)

Q: A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: Determine the selling price PV, per $1,000 maturity value, of the bond. (Assume twice-yearly…

A: Par value (FV) = $ 1000 Coupon rate = 4.975% Semi annual coupon amount (C) = 1000*0.04975/2 = $…

Q: EDEF Company will issue $8,000,000 in 10%, 10-year bonds when the market rate of interest is 7%.…

A: Price of bond is the present value of coupon payments plus present value of face value that is paid…

Q: A $3000, 7.5% bond (payable semi-annually) is redeemable at par in 2 years and 6 months. If the bond…

A: Par Value or Face Value (P) – This is the actual money that is being borrowed by the lender or…

Q: A 50,000$ bond has a maturity date of 6 years. the bond interest rate is 6% per annum payable…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: lease provide whole answer: A company has a bond outstanding. Bond A has a face value of $20,000…

A: The bond is a debt instrument that is issued by the organization to raise the funds from the bond…

Q: A bond has a face value of $30,000 and matures after 8 years. Five offers were submitted for the…

A: Given information :

Q: You will be paying $12,200 a year in tuition expenses at the end of the next two years. Bonds…

A: Given: Particulars Amount Tuition expenses $12,200 Year 2 Yield 9% Yield 10% Yield 8%

Q: A newly issued 10-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit…

A: Face value of the bond (FV) = $1,000 Current price of the bond (P0) = $311.05 Semiannual maturity…

Q: Assume a $1000 bond issue at the rate of 10% for 15 years. a)What is the interest payment for this…

A: Bond carry annual payment which are paid during the life of bonds.

Q: Calculate the annual interest that you will receive on the described bond. A $500 Treasury bond with…

A: A treasury bond is a kind of debt security issued by the government and private companies for…

Q: Q) An $6,000 face-value bond matures in four (4) years and pays 6% per year payable Semiannually  An…

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: Assume that a 5-year bond pays interest of $110 once a year (1 payment / year) and will mature for…

A: STEP 1 Bond Duration can be used to calculate how much an interest rate change will likely affect…

Q: You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months.…

A: Value of the Bond =whereC =Periodical interest = semi annual interest =$60r = periodical required…

Q: You purchase a 6% $1,000 bond with a term of 5 years and reinvest all interest payments. If interest…

A: Bond valuation:Bond valuation is the process of determining the fair market price of a bond, which…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.