Calculate the PVB of 4 - year bond with a nominal of 140 000 PLN, interest 6% pa, coupons paid each 4M and YTM at 8% if there is convexity of 4 - year bond with nominal 1 000 PLN, interest 8% pa, coupons paid quarterly and YTM 12% pa, if it is 2 years till maturity.

Q: If the price of bond is $1550. It's yield to maturity is 8.5 percent, it matures in 6 years and face…

A: Formula for YTM is: YTM = C + F - P                      n F + P 2

Q: Find the redemption value of a bond with the following info: Term: 10 Years Yield Rate: 4.5%…

A: Redemption value is the value at which the amount of bond will be redeemed by the firm to the…

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: Calculate the duration of the following debt security and discuss how duration changes with YTM,…

A: Duration or Macaulay duration of a bond is determined as the weighted average time in which the cash…

Q: Face value of the Bond = $1000, Annual Coupon Payment = 10%, YTM = 12%, Maturity = 10 %3D years,…

A: Realized  Compound yield of the bond: It is the earnings  which is generated by investors  when all…

Q: Assume a company-issued bond with 4,000 OMR face value in the muscat security market with 0.154…

A: Given: Face value = 4,000 Coupon rate = 15.4% YTM = 8% Years = 12

Q: a $10,000 bond with semi-annual cupon was originally issued with a 5.4% cupon and 10 years to…

A: In a financial market, the term bond depicts debt security that is sold by large business firms to…

Q: Calculate the Macaulay duration and the modified duration of a three-year bond with a face value of…

A: Answer -    Macaulay Duration -  Macaulay duration is a weighted average of the times to receive the…

Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…

A: To calculate the bond price we will use below formula   Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…

Q: A bond matures in 12 yesrs has a $1000 par value. The annual interest rate is 13 percent. The…

A: Time period of bond = 12 years Par value = $1000 Coupon Rate = 13% Yield to maturity = 14%

Q: YZ issued a bond with a par value of P1,000. The bond pays an interest of P35 each quarter, and has…

A: Par value (FV) = P1,000 Quarterly coupon payments (C) = P35 Years to maturity = 10 Years Number of…

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: A bond with a par value of PhP1,304 with a bond rate of 9% is to be redeemed at PhP1,250 at the end…

A: Par value = Ph 1304 Coupon rate = 9% Coupon amount (C) = 1304*0.09 = Ph 117.36 Maturity price (FV) =…

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: How much will the coupon payments be of a 15-year $500 bond with a 9% coupon rate and quarterly…

A: To calculate the coupon payment amount we will use the below formula   Coupon amount = FV*(C/M)…

Q: Find the nominal value and the time to redemption of 10 (the same) zero-coupon bonds, if they can be…

A: Bond Prices, Interest rates and time to maturity: Bond prices are sensitive to changes in interest…

Q: Calculate the modified duration for a 8-year bond that pays a 7.1% annual coupon and has a YTM of…

A: Given information,Time:  yearsAnnual coupon: YTM: To calculate,Duration

Q: Compute the yield to maturity of a 3-year maturity 16% bond purchased at 970₺, whose nominal value…

A: Years to Maturity = 3 Coupon Rate = 16% Boond Purchased = 970 Nominal value  = 1000 Coupon Amount=…

Q: what is the approximate yeild to maturiy (ytm)of bond that is currently selling for $1,150 in the…

A: Annual interest payments ($1000*14%)   $140

Q: ACT has an outstanding bond with a face value (principal) of Php. 1,000 which would mature in 10…

A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…

Q: Find the duration (in years) of a 4-year bond with the following characteristics: $10,000 face…

A: Macaulay duration refers to the timeframe that a bond investment requires to produce cash inflow…

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: A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and…

A: Step 1 Bond valuation: It is the cycle to determine the fair value of a bond or present value of a…

Q: he par value of 8% bond is P5,000 with maturity is 5 years. What would be the price if interest rate…

A: Price of a bond is simply the present value of its cash flows that will occur in future. Cash flows…

Q: 0-year 8% annual coupon bond with a face value of 1000 is purchased. At the time of purchase, the…

A: Price of bond is the present value of coupon payments plus present value of par value of the bond…

Q: A 15-year bond with 7.5% coupons paid semiannually will be redeemed at P1400. The bond is bought to…

A: Semiannual coupon rate = 0.0375 (i.e. 0.075 / 2) Semiannual yield (y) = 0.03 (i.e. 0.06 / 2)…

Q: 1. A Php1000 bond which will mature in 10 years and with a bond rate of 89 pavable unnually is to be…

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

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: A bond pays a 6% coupon rate, face value 1000 dollars, discount rate - 4%, maturity ( number of…

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

Q: Yield Computation. What is the yield to maturity for a bond paying $45 semiannually that has twelve…

A: Semi-annual coupon payment=$45 Years to maturity=12 years Bond price=$975 Face value=$1000…

Q: A 15 years bond with annual coupon rate equal to 10% (paid semiannually), if the par value of the…

A: A bond is considered as a fixed-income instrument. A bond represents the loan provided by the…

Q: Bond A and Bond B are 6% coupon bonds, and have a 7% YTM, and pays annually. Bond A is 1 year from…

A: Bond valuation is the process of determining the fair value of a bond. The value of a bond is based…

Q: A 2-year bond has face value £600,000, quarterly coupons at rate 4% pe annum, and is redeemable at…

A: Bonds are a source of investment and finance and bonds are paid interest only payments and par value…

Q: Calculate the duration ( Macaulay ) of a 2 - year bond that pays 3 % coupon annually , has a YTM of…

A: Macaulay duration With periodic coupon payment (PMT), periodic yield (r), maturity period (n),…

Q: What is the present value of a 10-year bond outstanding with 8 years left in “year-to-maturity,” 6%…

A: A bond is a useful tool for finance concepts. Bond market values are used by analysts and investors…

Q: A 2-year bond has face value £500000, quarterly coupons at rate 6% per annum, and is redeemable at…

A: Bonds are a source of investment and finance and bonds are paid interest only payments and par 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: Consider a bond, paying 8% semiannual coupons, with face value of US$1,000, maturing in 15 years and…

A: Par Value  $       1,000Coupon rate8.00%Years to maturity15Selling price of bonds$       724.7

Q: A 3-year bond with 12% coupon rate and Rs.1000 face value has the yield to maturity of 8%. Assuming…

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

Q: Compute the yield to maturity of a 4-year maturity 16% bond purchased at 975 ₺, whose nominal value…

A: Information Provided: Term = 4 years Coupon rate = 16% Price = $975 Face value = $1000

Q: A two-year amortizing bond has a coupon rate of 4% and pays its coupons semi- annually. Coupon…

A: An amortized bond is a type of fixed-income security issued by corporations, governments, or other…

Q: late the Macaulay duration of a three-year bond with K1000 face value and an annual coupon rate of…

A: Macaulay duration bonds shows how much the bond prices are more sensitive to the change in interest…

Q: A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the…

A: Par value = £100 Coupon rate = 9% Coupon rate = 100*0.09= £9 Yield to maturity = 12% Years to…

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.