(e) What was the holding period return for an investor who held the bond from i. 31 May 1927 to 31 July 1931? ii. 31 July 1931 to 30 June 1937?
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just the subpart e please thank you so much, i appreciate it!
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- On January 1, a company issued $19,383,400 of 12 year bonds with a coupon rate of 7%, payable semi-annually on June 30 and December 31. The market rate of interest on the issuance date was 5%. What was the issuance price of the bonds? Provide your answer to the nearest whole dollar (no decimals). O $22,850,118.00 O22,850,118 22,850,119 O 22850118 O 22,850,117 O $22,850,118On July 1, Somers Inc. issued $300,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. A. Assuming the bonds sold at 64.55, what was the selling price of the bonds? B. Explain why the cash received from selling this bond is different from the $300,000 face value of the bond. Investors can earn a in other similar bonds so the bond sells at aCalculate the cash price of the following bond, sold on September 21: par = $1,000; coupon rate = 6 percent, paid on January 1 and July 1; quoted price = $964. (Round answer to 2 decimal places, e.g. 1564.25.) Cash price $ LA
- On July 1, Somers Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12 %. The bonds paid interest semi-annually. A. Assuming the bonds sold at 59.55, what was the selling price of the bonds? B. Explain why the cash received from selling this bond is different from the $200,000 face value of the bond. Investors can earn a higher rate ✓ in other similar bonds so the bond sells at a discountCalculate the cash price of the following bond, sold on September 21: par = $1,000; coupon rate = 6 percent, paid on January 1 and July 1; quoted price = $945. (Round answer to 2 decimal places, e.g. 1564.25.) $ Cash priceWhat is the yield to maturity of the August 2000 Treasury bond? % (Round to three decimal places.)
- 5 On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 7 B 9 0 1 2 AWN IC $500,000 a) Required: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the botto this worksheet). Note: Rounding is not required. 15 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: = Bond Selling Price: 9% $17,500 133,500.01 285,055.55 418,555.56 6.00% $17,500 205,993.38 5343,007.72 $549,001.10 +At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2019: 7.15 May 23 114.37500 114.43750 8.90 May 23 111.50000 111.56250 147.65625 147.84375 12.65 May 23 -.43750 5.41 - 18750 5.37 -.50000 5.45 The bond in the middle is callable in February 2020. What is the implied value of the call feature? Assume a par value of $1,000. (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call valueAtom Endeavour Co. issued $48 million face amount of 12.0% bonds when market interest rates were 13.38% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Annual interest payment b. Were the bonds issued at a premium or discount? O Premium O Discount c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? O Interest expense will be less than the interest paid. O Interest expense will be more than the interest paid. O Interest expense will be equal to the interest paid.
- 1. On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%.The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of thebonds? Explain why the cash received from selling this bond is different from the $200,000 face value of thebondAt one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2022: 6.60 May 26 8.35 May 26 12.10 May 26 110.37500 -.34375 110.43750 107.50000 107.56250 -.09375 136.65625 136.84375 -.40625 5.30 5.26 5.34 The bond in the middle is callable in February 2023. What is the implied value of the call feature? Assume a par value of $1,000. (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Call value. A 25,000 4% bond with interest payable annually will mature on May 1, 1998. The date ofpurchase is July 1, 1988 to yield 3 ½% m=1. Find the purchase price of the bond on July 1,1988. (Bonds between dates)