For numbers 13, 14 and 15. Find the value of a P 50,000.00 bond with interest of 12% compounded semi- annually which is redeemable at 105% in 3 years that yields the purchaser 8% converted semi-annually.

Q: A 10-year, 6%, $5,000 bond (cash interest payable 3% semiannually) is sold to yield 8% interest.…

A: Issue Price=PV of face value+PV of coupon payments

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 $30 000, 3% bond redeemable at par is purchased 7 years before maturity to yield 5.5% compounded…

A: Par value (FV) = $30,000 Coupon rate  = 3% Quarterly coupon amount (C) = 30,000*0.03/4 = $225 Years…

Q: Calculate the FV of $100 000 at an interest rate of 5.65% p.a. at the                 end of 3 years…

A: Compound interest is the interest earned on the principal amount invested for a period of time…

Q: How much can be paid for a P100,000, 10% pa , 20 year bond with interest paid annually, 8 years…

A: Par value = P 100,000 Coupon rate = 10% Coupon amount = 100,000*0.10 = P 10,000 Years to maturity…

Q: give me the Investor's journal transactions for the following investment. $10,000,000 (2-year 10%…

A: Investment: Investment is an amount invested by investors in projects to earn income from the…

Q: An IOU agreement was made between two persons. For a face value of P100,000, it was agreed that the…

A: A bond is an instrument that obligates the issuer to pay the buyer pre-determined interest. The…

Q: A $8500 bond bearing interest at 4.3% payable semi-annually is due in 7 years. Money is worth 5.9%…

A: Par value = $8500 Coupon rate = 4.3% Frequency of payment  = Semi annual

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: Calculate the present value of an $80,000, 10%, five- year bond that pays $8,000 ($80,000 × 10%)…

A: Given details are : Par value of bond = $80000 Coupon on bond = $8000 Market rate of interest = 10%…

Q: Assume that you purchase a $3,000 bond issued by Kohls that pays 6 percent interest each year, paid…

A: The objective of the question is to calculate the amount of each interest payment for a bond that…

Q: An IOU agreement was made between two persons. For a face value of $100,000, it was agreed that the…

A: Face value = $100000 Annual payment (A) = 10.50% of Face value = $10500 Redemption value (R) = 90%…

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: A 9,000 bond, redeemable at par, pays interest at 5% to yield the purchaser 4%, quarterly for 2…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: A $700,000, 20-year, 8% bond issue was sold to yield 10%. Interest was payable annually. Actuarial…

A: Interest=Face value×8%=$700,000×8%=$56,000

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: A $3000 bond that pays 9%semi-annually is redeemable at par in 15 years. Calculate the purchase…

A: Solution:- We know, the purchase price of bond is the present value of amounts receivable from the…

Q: The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years.…

A: A bond is a fixed-income security that pays regular fixed periodic payments to the bond holder and…

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: Seaside issues a bond that has a stated interest rate of 11%, face amount of $40,000, and is due in…

A: 1.Issue price of bond = Present value of Interest payments of bond+Present value of maturity price…

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 $10,000 commercial bond that has a 6% bond rate and matures in 5 years can be purchased for…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: A Php 6,000, 5% bond with semi-annual payments, is redeemable at par at the end of 4 years to yield…

A: Bond valuation refers to the determination of different elements regarding bonds. The coupon…

Q: A six-year $1,800 8.5% bond with semiannual coupons is bought for $1,918 and is redeemable for…

A: Bond Valuation

Q: A bearer bond worth Rs. 50,000 after six years. What will be the present value of the bond if…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: Compute the selling price of 8%, 10-year bonds with a par value of $250,000 and semiannual interest…

A: Selling/Issue price of the bonds = Present value of principal + Present value of interest payments…

Q: A ten-year USD100 par value bond pays 8% coupons semiannually. The bond is priced at USD118.20 to…

A: Bond value is the current price or the present value of the bond. This can be determined by…

Q: A Php14,000 , 7% bond payable quarterly is priced to yield 8%, m=4 and redeemable at par at the end…

A: Par value (FV) = Php 14,000 Coupon rate = 7% Quarterly coupon payment (C) = 14000*0.07/4 = Php 245…

Q: Determine the current value of an 7.5% GOJ bonds with a face value of $500,000.00 that pays interest…

A: Bond Current Price  = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount  Mv = Maturity…

Q: 52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested…

A: Bond is a debt security which is issued by the organizations to raise funds. The investment in bonds…

Q: Determine the present worth if the bond pays 12% compounded annually?

A: The present worth can be found using the PV Function in excel. PV = (RATE, NPER, -PMT, -FV, 0) RATE…

Q: 1. A bond, with a face value of P100,000 redeemable at par in 10 years, pays dividends at the rate…

A: A Bond with a face value of P100,000 redeemable at Par in 10 Years, pays dividend at the rate of 6%…

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: 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: What is the present worth of a $25,000 bond that was purchased for $23,750 and has an interest of…

A: Preset worth is the present value of inflows less present value of outflow. For a bond, present…

Q: An investor borrows a principal of £1,000,000 and agrees to an interest-only repayment at a rate of…

A: Borrowed principal amount is 1,000,000 Time period is 10 years Interest rate is 5%P.a. Interest is…

Q: A Php 10,000.00 bond with a rate of 10% payable annually is to be redeemed at par value after five…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: A ​$27,000 bond with interest at 5.3​% payable​ semi-annually and redeemable at par is bought two…

A: Face Value = $27,000 Coupon Rate = 5.3% Time Period = 2 Years Yield = 6.6%