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

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: . 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: what is the yield on 5,000, 12% Acts bond priced at 95 plus 20 comission

A: Introduction :- A bond is a financial instrument in which the issuer (debtor) owes the holder…

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: e present value of

A: Answer:To calculate the present value of a bond, we can use the…

Q: Would you please help me understand how you got 16 for semiannual periods (number of period)? Bond…

A: Semi annual period means the half years or 6 months of a year. It is computed when the interest rate…

Q: The stated rate is 5%; the market rate is 4%. The future value of Bonds payable is $1,000. When…

A: Future value of bonds payable = $1000Stated rate = 5%Market rate = 4%

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: A five year bond pays interest $85 once a year and will mature for $1000. YTM is 10%. Determine the…

A: Macaulay Duration Formula: Macaulay Duration (MD) = (C1*t1 + C2*t2 + ... + Cn*tn) / (PV + FV) /…

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: What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an…

A: Step 1:This is calculated as (1*1 / (1+0.05) + 2*1 / (1+0.05)^2 + ... + 10*1 / (1+0.05)^10) /…

Q: What is the present value of a $500,000 12-year Bond with annual interest payments of $40,000…

A: Current value of  a bond is that amount which is calculated with the help of future benefits from…

Q: How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual…

A: When a bond's coupon rate is calculated as a percentage of its face value, it indicates the annual…

Q: How much  would you pay for a $30,000, 4 year, 5% bond if I want a return of 7%  { assume bond pays…

A: Given: Bond face value = $30,000 Coupon = 5% Semi annual coupon rate =2.5% So, semi annual coupon…

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: Suppose a Puerto Rico government bond pays $3,255.80 in 4 years at 4% interest. Calculate the…

A: Maturity value  of bond = $ 3255.80 Period = 4 Years Interest rate = 4%

Q: A 15-year bond issue of 4 comma 900 comma 000 and bearing interest at 3.5% payable annually is sold…

A: Given that, Nominal interest rate (i) = 3.1% Compounding frequency = 2  Effective rate of return (r)…

Q: $1000 bond pays 6% interest annually with 13 yrs maturity. Purchase price $905 What is the yield to…

A: Solution:- Yield to maturity means the rate of return earned by the bond holder, if he holds the…

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: