Assuming you want to purchase a 5 year bond that has a face value of $20,000 that pays 12% interest. How much are you willing to pay for this bond assuming the market rate is 12%

Q: 4. You buy a 4% 10-year $1,000 face value bond for $1,148.14. A year later, you sell the bond for…

A: The rate of return on the bond is calculated as sum of coupon yield and the capital gain yield

Q: 2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March…

A: The objective of the question is to calculate the total price that must be paid for a bond, given…

Q: The bank offers to sell you a bond for 585.43. No payment will be made until the bond matures 10…

A: Working note:

Q: What is the present value of a 10-year bond that has 4 years left-to-maturity (N), 7% annual…

A: The objective of the question is to calculate the present value of a bond that has 4 years left to…

Q: What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5…

A: The price of the bond is equivalent to the sum of the present value of coupon payment plus the…

Q: 6. An initial sum of $50,000 is invested in a bond. You will receive payments of $2,000…

A: a. Semi - Annual Interest Rate: Given: Investment amount = $50,000 Semi-Annual Interest received =…

Q: I buy a 7 yr par bond paying 8% annual. What is the YTM? If I wait 1 year and sell it at a YTM of…

A: YTM is total return earned on bond if bond is held till its maturity.  When the bond is priced at…

Q: 2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March…

A: The objective of this question is to calculate the total price that must be paid for a bond, given…

Q: If you had two investments to choose from, one a perpetuity that pays $100/year forever, or the…

A: Alternative 1: Perpetuity that pays $100/year forever Alternative 2: Bond that pays interest of…

Q: Assuming you want to purchase a 5 year bond that has a face value of $10,000 that pays 12% interest.…

A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…

Q: You want to buy a 9 year bond with a maturity value of $3,000, and you wish to get a return of 5.5%…

A: Using excel PV function

Q: Calculate the Macaulay's duration of the bond when the price is $1050 and yield is 6%.  If the yield…

A: % Change in Price =$ 1050 -$1030  / $1050 % Change in Price = $20 /$1050 % Change in Price =…

Q: You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth…

A: A bond reveals the debt instrument that allows the issuer to raise funds from the public. The holder…

Q: A bond promises to you 7000 in 10 years.  If you are able to earn 6 percent on securities of equal…

A: Future Value = 7000 N = 10 Rate = 6%

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: 2- How much would you pay for the bond that mature after 30 years and has a semiannual coupon…

A: Bonds are a kind of loan agreement in which only interest is paid each year and par value is paid on…

Q: You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like…

A: Payout in 10 months = $ 815 Interest rate = 2.2% Period = 10 months

Q: You are considering purchasing a 30-year bond for $1500. If the coupon rate is 5.7% APR paid…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: You purchased a $1000 20-year bond with a 5 year call provision. If the bond pays $95 annually and…

A: Yield to Call Years 5 coupon amount (PMT)  95 Face value (FV) 1000 Present value 850

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: How much (in dollars) will you pay?

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

Q: You pay $25.00 for a bond which can be redeemed in 20 years for $50.00. What annual rate does this…

A: In this question we need to calculate the annual rate of return from the bond.

Q: Whittier Inc. offers you a $1,000 bond with 5 years to maturity, annual payments. Assume that the…

A: Given: Particulars   Par value(FV) 1000 Years (NPER) 5 Rate 8% Coupon rate 10%

Q: The bond is selling at $160, maturing in 4 years with a face value of $200. the alternative choice…

A: Selling Price of Bond = 160 T = 4 years Face Value = 200   Interest Rate = 6%

Q: 5) You purchase a 30 year bond with nominal semiannual coupon rate 7% and nominal semiannual yield…

A: Step 1:Step 2:Step 3:

Q: You are considering a savings bond that will pay $100 in 8 years. If the interest rate is 2.2%, what…

A: The objective of this question is to find out the present value of a savings bond that will pay $100…

Q: What total cash will you receive from the bond after the 3 years? Assume that periodic cash flows…

A: The Question asked about what will the total price, received after 3 years when a person who buys it…

Q: You have three debt instruments: a simple loan for $1 million that requires a repayment of…

A: Information Provided: Simple loan PV = $1,000,000 FV  = $1,009,000 Term = 1 year Discount bond…

Q: You intend to purchase a 3-year, $1,000 face value bond that pays interest of $39 every 6 months. If…

A: The predetermined dollar amount that the bond issuer guarantees to pay the bondholder at the bond's…

Q: Please show full steps and correctly thanks

A: General information:Present value refers to the current valuation of a future sum. Investors…

Q: You own a bond that will pay $103, 6 years from today, and $211, 8 years from today. Your discount…

A: Present Value is a capital budgeting technique which helps in knowing the current value of future…

Q: You purchased a bond at a price of $1,400. In 25 years when the bond matures, the bond will be worth…

A: Sure, here's the calculation presented in a clear format:Calculate Total Return:Ending Value (Value…

Q: 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it…

A: Coupon rate=5% Period =20 years  YEILD to MATURITY =12% Par value =1000

Q: You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are 11.25%,…

A: Yield to maturity  Years 10 coupon amount (PMT)  95 Face value (FV) 1000 Yield rate  11.25%…

Q: (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 5 percent…

A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…

Q: a.  What is the yield to maturity on this​ bond? b.  Should you purchase the bond if the yield to…

A: YTM is the annual return that a bond holder would receive if the held the bond until maturity.

Q: If you want to receive $500 every three months for 10 years by investing in a bond that has a face…

A: The Bond's current price is the present value of its expected future cash flow, which is discounted…

Q: How much  would you pay for a $30,000, 4 year, 5% bond if I want a return of 7%  { assume bond pays…

A: Given: Bond face value = $30,000 Coupon = 5% Semi annual coupon rate =2.5% So, semi annual coupon…

Q: You have a $1000 bond at 5% (coupon rate) that matures in 7 years and pays interest annually. You…

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

Q: Which will you prefer to invest your $1,500: a) a two year bond with interest rate of 9 percent or…

A: Investment amount = $ 1500 Option1 = 9% interest rate bond for 2 years Option2 = 8% bond in year 1…

Q: 3. What is the present value of a $20,000 payment you would receive 5 years from now, assuming an…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

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: 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 buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You…

A: Rate of return is the percentage of profit earned from an investment. Given: Face value of bond is…