Discount Premium а. No No b. Yes Yes C. No Yes d. Yes No

Q: mediately after the 20th instalment, the nominal interest rate on the outstanding loan is reduced to…

A: Loans are paid in equal installments and these payments carry the payment of interest and loan…

Q: Andrew Codilla has a present obligation of $10,500 that is to be paidinequal uniform amounts, each…

A: The present value of an annuity refers to the present value of all the future payments of a series…

Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…

A: A bond is borrowing security that is issued by the company in order to raise funds from the market…

Q: Show that the total interest paid on the amortization of a loan with leveled monthly payments K for…

A: The loan amount denotes by P, Monthly payment by k, number of years by n years, and rate of interest…

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 partially amortizing mortgage is made for $62,000 for a term of 10 years. The borrower and lender…

A: Principal Loan Amount (P) is $62,000Interest Rate (annual) is 7%Term (n) is 10 yearsNumber of…

Q: A 6000 bond with interest at 4% compounded semi-annually is redeemable at 107 at the end of 5 years…

A: Following data will be fed in excel in arriving at present value of bond:  Rate  Market yield…

Q: A bond pays P342 interest per year and has face value of P9,806 at the end of 14 years, when it has…

A: Face Value =  P9,806 Time Period = 14 years Coupon (PMT) = P342 Interest Rate = 0.15

Q: An amortization of a debt is in a form of a gradient series of ₱5,000 on the first year, ₱4,500 on…

A: In this we have to find out present value and from that we can get required annuity.

Q: Pearson Co issue its $199500 at a price of 97, the stated rate is 6%, the bond term is 4 years, and…

A: The bonds are issued at a discount as the issue price is less than the face value. Interest expense…

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: Determine the monthly payment for a five-year fixed rate mortgage of $260 000 amortized over 25…

A: To calculate the monthly payment we will use the below formula   Monthly payment = PV/[1-(1+r)-n]/r…

Q: A bond pays P342 interest per year and has face value of P9,964 at the end of 15 years, when it has…

A: Here coupon (PMT) = 342; rate = 13%; FV = 9964 and nper (or n) = 15. In excel we can use the PV…

Q: A partially amortizing mortgage is made for $75,000 for a term of 10 years. The borrower and lender…

A: Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1) Where, P = Principal borrowed =75,000 r = periodic…

Q: You purchased a bond and will receive $500 every six months for the next five years. If the market…

A: Present value of annuity can be computed by using the following formula: Here,…

Q: determine a) the bond rate; b) the bond’s purchase price. (Ans. 12%; P5627.57)

A: 1) Annual coupon = 150 * 4 = 300 Bond rate = (Annual coupon / face value) * 100 Bond rate = (300 /…

Q: bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to…

A: Given information :

Q: assume a 30-year $200,000 mortgage loan with an apr of 7%. what is the amount of interest and…

A: Given information,Annual rate:Loan amount: Years:  YearsCompounding frequency: AnnualTo calculate…

Q: The mortgage contract states that the debtor must pay a minimum of P100,000 per year on the 7%…

A: Sometimes the lenders allow to pay annual payment and some lump sump payment at the end of mortgage…

Q: Given the following information, calculate the balloon payment for a partially amortized mortgage:…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in three years if the…

A: Duration of the bond is that point of time for which, if the bond is held, then an investor is…

Q: the issuer of a 10 year term bond, the amount of amortization using the effective interest method…

A: Bonds are issued by company to obtain long term financing. Issue price of bonds are dependent on…

Q: Assume that a 5-year bond pays interest of $90 once a year (1 payment / year) and will mature for…

A: Duration of a bond refers to a process used to measure the change in the price of bond according…

Q: A bond pays $50,000 per year and has a face value of $500,000 at the end of 8 years when it has to…

A: Annual payment = $ 500 Face value = $ 500,000 Period = 8 Years Current price = $ 390,000

Q: An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on…

A: Payment in year 1 = p1 = P10,000 Payment in year 2 = p2 = P9500 Payment in year 3 = p3 = P9000…

Q: A perpetual bond pays the owner 29,000.00 at the end of each year with the interest rate is fixed at…

A: Present value of perpetuity = Amount paid every year/ Interest Rate

Q: debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded…

A: In this we have to calculate the present value factor and calculate the semiannual payment.

Q: A mortgage of P 90 000 is to be paid by annual payment over a period of 10 years. If the interest…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold…

A: The market value or price of a bond can be determined by using the current interest fee contrasted…