e for a 4-year bond st rate on the 12 yea

Q: A bond has a $1,000 face value, a market price of $996.29, and pays interest payments of $72.05…

A: In the given case, we have provided the face value or the par value of bond , market price of bond…

Q: If the price of this bond decreases by $250 to $750, what will its effective interest rate be for…

A: Effective Interest rate of a bond is the yield on the bond. It is rate that defines the rate of…

Q: he discount is $48000289 and the final answer to the nearest cent as needed. Round all intermediate…

A: Price of bond is sum of present value of coupon payment and present value of par value of bond.

Q: A. P 57,620 B. P 75,260 C. P 57,720 D. P 75, A $50,000 bond has a maturity date of six years from…

A: Bonds are kind of debt instruments in which there is periodic interest payment and face value is…

Q: How much is a bond worth if it pays $55 per year in interest forever and the market interest rate is…

A: In the given we require to calculate the bond worth from following details: Annual interest = $55…

Q: 64. You plan to buy a $1,000 face value 10-year bond that earns $60 in interest every six months.…

A: Please find the answer to the above question below:

Q: What is the issue price of a $2,000 bond sold at 981⁄4? What is the issue price of a $6,000 bond…

A: Issue price of a $2,000 bond = $2,000  x 98.25% = $1,965

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 currently has a price of $890. The yield on the bond is 6%. If the yield increases 25 basis…

A: It is given that if yield increase by 0.25% the prices of bonds go down to $870 Computation of % of…

Q: A bond with a face value of 1,000 USD that bears interest at 6% payable semi-annually will mature on…

A: Bonds are long term sources of finance for companies and is cheaper source of finance and in this…

Q: Given the following information, what is the coupon rate of the bond? Years to maturity: 12 Par…

A: Compound = n = Semiannually = 2Time = t = 12 * 2 = 24Face Value = fv = $1000Interest rate = r = 10 /…

Q: Define the intrinsic value of a 2-year maturity bond whose face value will be repaid in equal…

A: The face value of bond is repaid at the end of maturity period, is known as redemption value of…

Q: What is the value of a 12-year 10% $1,000 bond when the market interest rate is 5%?

A: The present value of a bond can be determined by discounting all its future cashflows.

Q: . A 5% semi-annual pay $1,000 bond matures in 4 years. What is the YTM if the price is…

A: Compound = Semiannually = 2Coupon Rate = c = 5 / 2 = 2.5%Face Value = fv = $1000Time = t = 4 * 2 =…

Q: A (general obligation) muni bond pays 7% interest. A Treasury bond pays 6.5% interest. Which bond…

A: When deciding between a municipal bond (muni bond) and a Treasury bond based on their interest…

Q: A 15 -ear 7% coupon (semiannual) bond sells for $1030, what is the bond holder’s YTM?

A: The objective of the question is to calculate the Yield to Maturity (YTM) for a bond. YTM is the…

Q: What is the coupon payment of a 15 -year $10,000 bond with a 9 % coupon rate with semiannual…

A: Given details are : Face value of bonds =$10000 Time period = 15 years  Coupon rate = 9% Coupon…

Q: Assume that a bond will make payments every six months as shown on the following timeline (using…

A: Period        Cash Flows  0 1                  $20.39 2                  $20.39   39.…

Q: Use the following tables to calculate the present value of a $763,000, 6%, 6-year bond that pays…

A: Present Value of a Bond = Present Value of Coupon payments + Present Value of Redemption Value…

Q: Calculate DV01 for a £1 million (nominal) 5% annual bond with three years remaining life that is…

A: DV01 measures the change in price of the bond by a single basis change in yield. It is used to…

Q: What is the issue price of a $2,000 bond sold at 981/4? What is the issue price of a $6,000 bond…

A: When bonds are sold at price lower than the par value, they are said to be issued at a discount.…

Q: 19. What is the YTM of a 14 year 7% bond that is currently selling for $9807

A: According to bartleby guidelines, if multiple questions are asked ,then 1st question needs to be…

Q: A bond with 18 years to maturity has an annual interest payment of $30. If the bond sells for its…

A: Let the face value be $1000 therefore price of the bond =$1000 using excel rate function  current…

Q: 1. A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year.…

A: A bond is a debt instrument where an institution can raise capital by borrowing (in form of bond…

Q: Assume that you just bought a 5-year bond that pays interest annually of $80 ead year and will…

A: Yield to maturity of bond is rate of return realized on bond when bond is held till maturity and…

Q: A single payment of $15,000 @ 5% for 8 years. Please identify which table you used.

A: Present Value(PV) is value of a future amount at current point of time. It is done by discounting…

Q: Q10. Consider a discount bond with a principal payment of $1,000, a price of $900, and a YTM of E. 5…

A: Face value (FV) = $1000 Price (PV) = $900 YTM (r) = 5.4093%

Q: an investor purchasea a 20-year, 1,000 par value bond that pays semiannual interest of $40. If the…

A: Current market rate of bond can be calculated by discounting future cash flows or internet income…

Q: A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have…

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

Q: 2. A bond was issued at a par value of OMR100 and is due to mature in five years. It pays 8%…

A: Face value (par value) is the amount paid to a bondholder at the maturity date

Q: If I purchase a semiannual-paying 8% coupon bond 27 days after the last coupon payment, what is the…

A: Assume face value of bond is $1000 Assume total number of days in a year = 365 Assume Number of days…

Q: The yield on a 5-year T bond is 3.93%. The yield on a 19-year T bond is 3.73 %. What is the forward…

A: Yield rate on 19-year bond = S1 = 3.73%Time period = n1 = 19 yearsYield rate on 5-year bond = S1 =…

Q: A 30-year bond that pays annual coupons is purchased at a discount. The accumulation of discount in…

A: Current value of bond:The current value of a bond represents the present worth of all future cash…

Q: A one-year zero-coupon bond yields 4.76%. The two-and three-year zero-coupon bonds yield 5.11% and…

A: Spot rate is the rate for 1 specific year.

Q: 5. Look at the following data: i't +2 ift +3 5.65 percent 5.78 percent 5.88 percent premium = 0.10…

A: The long-term interest rate, according to the expectations theory of term structure, is a weighted…

Q: Assume that there is a bond that pays $50 at the and of year 1 and $50 at the end of year 2. It…

A: Macauley duration = Where PVC = Present value of future cash flows from the bondt = timeP0 = Current…

Q: A bond with 6 years left to maturity is trading for $975.  It pays coupons semiannually.  Its YTM is…

A: Face Value (FV) of the bond = $1000 Bond price (PV) = $975 Number of years to maturity =6 Number of…

Q: You deposit $27,000.00 in an account that pays 4% compounded annually and immediately start making…

A: Given:

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: