Given:Bond Info:Coupon Rate11.875%Quoted Yield3.000%Maturity DateFrequencyMay 29, 2023Tax Rate20%Trade Info:Settlement Date April 25, 2022Face Amount30,000,000.00Question 1Assuming this bond is traded in a NO TAXenvironment, how much is the coupon per couponpayment date?1.400,000.001,625,000.00| 1,781,250.00

On each bond there is periodic coupon payment and these are to be paid each period to the person…

Answered: Bond Info: Coupon Rate 11.875% Quoted…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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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.
Which of these two bonds offers the highest current yield? Which one has the highest yield to maturity? a. A 6.55 percent, 22-year bond quoted at 52.000 b. A 10.25 percent, 27-year bond quoted at 103.625
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 The day count convention used in PH Bond Market 30/365 Actual/365 30/360
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
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 Assuming this bond is traded in a NO TAX Environment, compute for the Accrued Interest 444,791.67 1.444,791.67 2.444,791.67
Given: Bond Info: Coupon Rate Quoted Yield 11.875% 3.000% Maturity Date Frequency Tax Rate May 29, 2023 2 20% Trade Info: Settlement Date April 25, 2022 Face Amount 30,000,000.00 Assuming this bond is traded in a 20% TAX environment, how much is the coupon per coupon payment date? ) 1,781.250.00 1,425,000.00 1,400,000.00
If the YTM on the following bonds are identical except, what is the price of bond B? Bond A Bond B Face value $1,000 $1,000 Semiannual coupon $45 $35 Years to maturity 20 20 Price $1,098.96 ?
2. Determine the purchase price and the amount of premium/discount of the given bonds. Face Value Coupon Rate Yield Rate Redemption Date Purchase Date Purchase Price ? a. $1000.00 5.25% 5.25% January 01, 2024 January 01, 2019 b. $5000.00 4.75% 6.75% October 20, 2028 October 20, 2018 ? c. $10,000.00 7.85% 4.15% August 16, 2034 August 16, 2014 ? Amount of Premium/Discount ? ? ?
Please answer all 4 yield to maturity with explanations thx
4
Give only typing answer with explanation and conclusion
There are two zero-coupon bonds below: Coupon Term to rate maturity 0% 1 year 10% 2 years Bond A B FV $100 $100 Price $95.24 $107.42 Consider a 2-year coupon bond C with FV = $100, coupon rate=25%, and price = $ 138. Is Bond C underpriced/overpriced relative to Bonds A and B? What is the potential arbitrage trading strategy? O a. Overpriced; Long 3/22 unit of A; Long 25/22 unit of B; Short 1 unit of C O b. Underpriced; Long 3/22 unit of A; Long 25/22 unit of B; Short 1 unit of C O c. Overpriced; Long 3 unit of A; Long 25 unit of B; Short 1 unit of C O d. Underpriced; Long 3 unit of A; Long 25 unit of B; Short 1 unit of C

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Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency 2 Tax Rate 20% Trade Info: Settlement Date Face Amount April 25, 2022 30,000,000.00