Given the following information; Face Value = $50,000 Bond Rate = 4% Coupons per year = 2 (Semi-annual) Years and Months left on bond = 6 Years and 4 Months Market Quotation = 98.778 1.) Find the Quoted Price. (3 decimals) 2.) Find the Average Book Value. (3 decimals) 3.) Find the value of the Coupon. (3 decimals) 4.) Find the number of coupons left on the bond. 5.) Find the Total Interest. (2 decimals) 6.) Find the Premium (or Discount) (3 decimals) If this is negative, include the negative sign in your answer. 7.) Find the Average Income per Coupon. (2 decimals) 8.) Calculate the Approximate value of i. (Correct to 4 decimals) %
Given the following information; Face Value = $50,000 Bond Rate = 4% Coupons per year = 2 (Semi-annual) Years and Months left on bond = 6 Years and 4 Months Market Quotation = 98.778 1.) Find the Quoted Price. (3 decimals) 2.) Find the Average Book Value. (3 decimals) 3.) Find the value of the Coupon. (3 decimals) 4.) Find the number of coupons left on the bond. 5.) Find the Total Interest. (2 decimals) 6.) Find the Premium (or Discount) (3 decimals) If this is negative, include the negative sign in your answer. 7.) Find the Average Income per Coupon. (2 decimals) 8.) Calculate the Approximate value of i. (Correct to 4 decimals) %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
13.
![Given the following information;
Face Value = $50,000
Bond Rate = 4%
Coupons per year = 2 (Semi-annual)
Years and Months left on bond = 6 Years and 4 Months
Market Quotation = 98.778
1.) Find the Quoted Price. (3 decimals)
2.) Find the Average Book Value. (3 decimals)
3.) Find the value of the Coupon. (3 decimals)
4.) Find the number of coupons left on the bond.
5.) Find the Total Interest. (2 decimals)
6.) Find the Premium (or Discount) (3 decimals)
If this is negative, include the negative sign in your answer.
7.) Find the Average Income per Coupon. (2 decimals)
8.) Calculate the Approximate value of i. (Correct to 4 decimals)
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf4af336-0fbd-4b86-ad58-139fa69a7ad6%2F872f4501-d21e-4989-8b57-84ffae78785d%2Fvtb9m2vv_processed.png&w=3840&q=75)
Transcribed Image Text:Given the following information;
Face Value = $50,000
Bond Rate = 4%
Coupons per year = 2 (Semi-annual)
Years and Months left on bond = 6 Years and 4 Months
Market Quotation = 98.778
1.) Find the Quoted Price. (3 decimals)
2.) Find the Average Book Value. (3 decimals)
3.) Find the value of the Coupon. (3 decimals)
4.) Find the number of coupons left on the bond.
5.) Find the Total Interest. (2 decimals)
6.) Find the Premium (or Discount) (3 decimals)
If this is negative, include the negative sign in your answer.
7.) Find the Average Income per Coupon. (2 decimals)
8.) Calculate the Approximate value of i. (Correct to 4 decimals)
%
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