If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 15% 17.6% 1.18%

Q: What is your yield to maturity on the bond given the market price of the bonds?

A: Yield To Maturity: It is the total expected rate of return for the bondholder given all the coupon…

Q: A $9,000 bond matures in 10 years and pays 2 percent interest twice a year. If the bond sold for…

A: Actual investment rate refers to the rate of return generated by the investment made by the issue of…

Q: how much will the bond value increase over the next three years?

A: Answer Given N = 20, PMT =1000*5%= 50, FV = 1000, I/Y = 6.5%, CPT PV = -834.72.

Q: A. P 57,620 B. P 75,260 C. P 57,720 D. P 75, A $50,000 bond has a maturity date of six years from…

A: Bonds are kind of debt instruments in which there is periodic interest payment and face value is…

Q: A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end…

A: A bond is borrowing security that is issued by the company in order to raise funds from the market…

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 6.6% semiannual pay NYC bond has exactly 12 years to maturity and is currently trading at 102.…

A: Yield to maturity is the rate of return realized on the bond when the bond is held till maturity and…

Q: A 6% 15 year bond has 3 years remaining on a deferred call feature, the call premium is equal to…

A: Hai there! Thank you for the question. As per company guidelines expert can answer only one question…

Q: How much will the coupon payments be of a 25 year $5,000 bond with a 8% coupon rate and semi annual…

A: We require to calculate the coupon payment from following details : Face value of bonds = $5000…

Q: 64. You plan to buy a $1,000 face value 10-year bond that earns $60 in interest every six months.…

A: Please find the answer to the above question below:

Q: A bond with a face value of $5,000 pays quarterly interest of 3.5 percent each period. Thirty-four…

A: The price of the bond is calculated by calculating the present value of all the future payments that…

Q: Give typing answer with explanation and conclusion  1- Imagine the bond above displayed the…

A: Annual Effective Interest Rate is the actual annual rate of interest earned on an investment or paid…

Q: A bond promises to pay $5,350 next year. The interest rate on this bond is 7%. The price of this…

A: In the given question we need to compute the price of a bond.

Q: What is the value of a 12-year 10% $1,000 bond when the market interest rate is 5%?

A: The present value of a bond can be determined by discounting all its future cashflows.

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 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: 1. A bond maturing in 10 years pays annual coupon payment $80 each year and $1,000 upon maturity.…

A: Solution:- Present value of bond means the current price of bond at which it is trading in the…

Q: 21. A bond with a face value of $1000 and an 6% annual bond rate is redeemable at face value in 20…

A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Q: What is the approximate market value of a bond that pays $150 interest each year if comparable…

A: > Given data:> Annual interest = 150> Interest rate = 5% or 0.05

Q: A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable…

A: To calculate  the bond cost we will use the below formula   Bond cost today = FV/[1+(r/m)]n*m Where…

Q: What is the amount of premium/discount for a bond that has 4 years till it matures? The face value…

A: The objective of this question is to calculate the amount of premium or discount for a bond that has…

Q: 1. What would be the selling price of a 10-year bond with a face value of P100,000,interest at 20%…

A: Bond Valuation: It refers to the process of computing the fair or theoretical bond price. It helps…

Q: Use the following tables to calculate the present value of a $130,000, 5%, 6-year bond that pays…

A: The face value of the bond is $130,000.Maturity is 6 years.Annual coupon payments are…

Q: Suppose a State of New Mexico bond will pay $1,000 eight years from now. If the going interest rate…

A: We are given the following information-Future Value (FV) : $1,000 No. of the years : 8Interest rate…

Q: What is the approximate yield to maturity for a seven-year bond that pays 11% interest on a $1000…

A: Using excel RATE function

Q: How much did an old $14,800 EE savings bond cost when you initially purchased it? Assuming the bond…

A: NPER is a function commonly used in  Excel. The NPER function is used to calculate the number of…

Q: Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on…

A: Present value = Future cash flow * (1 + Discount rate)^ Number of years

Q: Suppose an Exxon Corporation bond will pay $1,000 ten years from now. If the going interest rate on…

A: The objective of this question is to find the present value of a bond that will pay $1,000 ten years…

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: If a bond will pay $50 interest per year into perpetuity, at what price will this bond sell when the…

A: perpetuity: It is annuity for the infinite time. present value of perpetuity formula: present value…

Q: You have the following information regarding an annual bond. What is the modified duration of this…

A: Modified duration of a bond shows the change in the value of the security as the value of the…

Q: What is the discount of a bond with a face value of 910000 due in 20 years paying interest at a face…

A: Bonds are the source of raising funds for the company from the investors with the consideration of…

Q: son.1

A: The objective of the question is to calculate the annual coupon payment of a bond. The coupon…

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: Question 12: In the following, you are given 5 bonds. Suppose coupons of all bonds are paid…

A: Duration is a metric of how sensitive a bonds or other instruments of debts price is to changes in…

Q: 2. A bond was issued at a par value of OMR100 and is due to mature in five years. It pays 8%…

A: Face value (par value) is the amount paid to a bondholder at the maturity date

Q: What is the present value of a 10-year bond outstanding with 8 years left in “year-to-maturity,” 6%…

A: A bond is a useful tool for finance concepts. Bond market values are used by analysts and investors…

Q: You intend to purchase a 3-year, $1,000 face value bond that pays interest of $39 every 6 months. If…

A: The predetermined dollar amount that the bond issuer guarantees to pay the bondholder at the bond's…

Q: Use the following tables to calculate the present value of a $502,000, 5%, 5-year bond that pays…

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value…

Q: Q4. A long term bond with a face value of quarterly. What are the amount of the interest payments?…

A: We can determine the amount of interest payments using the formula below:Payment per year =…

Q: 14. A corporate bond is sold for $920. It pays interest of $60 every year and is valid for 10 years.…

A: Selling Price of Bond = $920Interest Payment = $60Time = 10 YearsFace Value = $1000

Q: A 15 year $1000 face value coupon bond pays a coupon rate of 3.8% and has a YTM of 4.4%. Coupon…

A:

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: