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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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

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.