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A: Face value = $1000 Coupon rate = 13% Coupon amount = 1000*0.13 = $130 Yield to maturity = 15% Years…
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A: Time period of bond = 12 years Par value = $1000 Coupon Rate = 13% Yield to maturity = 14%
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A: The following information has been provided in the question: Face value of bond= $10,000 Price of…
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A: Bonds are the fixed interest bearing securities that are issued by the companies.
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A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…
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A: Consider the face value be $1000 So, price of bond = $1000
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A: Yield to maturity is the total return on the bond that is anticipated if the bond is held until it…
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A: Time to maturity=18 yearsAnnual interest payment=$35 Assume the bond’s par value is to be $1000.…
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A: Information Provided: Bond term = 15 years Face value = $1000 Coupon rate = 4% Yield to maturity =…
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A: Given information: Face value of bond is $1000 Price after one year is $800
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A: Percentage change in price of the bond= (-)duration* change in yield/( 1+ytm/2)
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Q: A 15-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…
A: Bond Equivalent Annual Yield = (face value - purchase price) / Purchase price *1/no. of years
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A: A financial instrument that does not affect the ownership of the common shareholders or management…
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A: Given information: Selling price of bond is $690 Number of years is 15 Issued at coupon rate of 5%
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A: Bonds are the financial instruments that are traded in the financial market for long-term and issued…
Q: The face value on a bond is $15,000. It has a 15-year maturity and a 3% coupon. What is the annual…
A: Annual Interest Paid to the Bondholder = Face Value * Coupon Rate
Q: A six-year, semiannual coupon bond is selling for $991.38. The bond has aface value of $1,000 and a…
A: Given,Face Value of Bond (fv) = $1,000Price of Bond (pv) = $991.38Time Period = 6 yearsNumber of…
Q: An 8% annual bond with a par value of $1,000, fifteen years to maturity, and a current price of $850…
A: Par value = $1000 Coupon rate = 8% Coupon amount = 1000*0.08 = $ 80 Years to maturity = 15 Years…
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A: Coupon rate: Coupon rate is the rate at which a bond is paying interest at a regular interval.…
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A: A bond will trade at Premium, when Coupon rate is greater than YTM A bond will trade at discount ,…
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A: Bond which is selling above par value is called premium bond
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A: using financial calculator, N(time to maturity) =18 PV (Price of bond) = -1150 FMT (annual Coupon) =…
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A: Value of bond is sum of present value of dividend payments and redemption value of bond.
Q: A 2-year discount bond with a face value of 1100 was purchased for 1000. What is the yield to…
A: Here, Face Value of Discount Bond (Future Value) is 1100 Purchase Price of Discount Bond (Present…
Q: Compute the current price of a bond which matures in 40 years and has a required rate of return of…
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A: Current price of the bond is the sum of present value of coupon and the present value of face value.
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Q: A 10-year, 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4 years…
A: YTM: Semiannual rate is 5.07476% Annual rate or YTM is 5.07476%*2 = 10.15%
Q: If the annual interest rate printed on the face of a bond is 10 percent, the face value of the bond…
A: Here, Annual Interest rate = 10% Face value of the bond =$1,000 Present value of the bond = $1,250…
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A: We need to use RATE function in excel in to calculate yield to maturity. Yield to maturity(YTM)…
Q: f a bond can be purchased for $60 and has a maturity value at the end of 10 years of $500, what is…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
- Calculate the
present value of a $1,000 discount bond with five years to maturity if the yield to maturity is 6%.
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- If a bond can be purchased for $60 and has a maturity value at the end of 10 years of $500, what is the annual rate of return on the bond?Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timelineIf a If a bond pays $90 interest annually, matures after ten years and costs $1,100. What is the current Yield.
- Consider a bond selling at its par value of $1000. The coupon rate is 6% and 5 years to maturity. Consider annual interest payments, calculate the bond's duration.You are given a ten-year bond which is redeemed at par. The bond pays 6% annual coupons and an effective annual rate of interest equal to 7%. Calculate the Macaulay duration.A bond is priced at $1,100, has 10 years remaining until maturity, and has a 10% coupon, paid semiannually. What is the amount of the next interest payment?
- Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual payments.Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on the bond is 12 percent (annual yield). How much would you pay for the bond if the coupon rate is 10 percent and the remaining time to maturity is 25 years?Calculate the value of a $1,000 bond which has 10 years until maturity and pays annual interest at an annual coupon rate of 10 percent. The required return on similar-risk bonds is 12 percent.
- Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 8 percent. How much would you pay for the bond if a. the coupon rate is 6 percent and the remaining time to maturity is 10 years?Suppose you purchase a five-year, 12 percent coupon bond (paid annually) that is priced to yield 10 percent. The face value of the bond is $1,000. Calculate the maturity value of the bond.A 5-year treasury bond with a coupon rate of 8% has a face value of $1,000. What is the semi-annual interest payment?
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