How much will the coupon payments be of a 10-year $5,000 bond with a 5% coupon rate and semiannual payments? A. $500 OB. $250 OC. $125 OD. $42 ***

Q: Hello tutor please provide Solutions with explanation

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Q: What is the price of a zero coupon bond with a $1,000 face value, 10-year maturity, and annual…

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A: Ans. YTM = C + F-P/n÷F+P/2 Where, C= Coupon amount              F = Face value             P =…

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.