If the discount rate is 19%, what is the present value of 3500 USD received at the end of each year for 23 years?

Q: tated face value? savings bond cost when you initially purchase it? Assuming 2.69 percent annually,…

A: NPER" stands for the "Number of Periods" in financial and investment calculations. It is a function…

Q: What is the bond yield to naturity?

A: Yield To Maturity: It is the expected rate of return on a bond for the bondholder given all the…

Q: calculate the present value

A: Present value (PV) is nothing but the present value of all future cash inflows from a bond. And we…

Q: a-1. What will be your total nominal return over the two years if inflation is 2.3% in the first…

A: Nominal returnThe overall percentage return on investment without adjusting for the effects of…

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 Treasury bond that you own at the beginning of the year is worth $1,020. During the year, it pays…

A: Dollar return = Ending value + interest - beginning value Dollar return = $1,030 + 32 - $1,020…

Q: What is the present value of a 10-year bond that has 4 years left-to-maturity (N), 7% annual…

A: The objective of the question is to calculate the present value of a bond that has 4 years left to…

Q: Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid…

A: Coupons are paid on bonds periodically according to stated interest rate on the bonds and frequency…

Q: se the following tables to calculate the present value of a $315,000 @ 6%, 5-year bond that pays…

A: The present value of the bond is the future inflows from bonds discounted at the market rate of…

Q: You will be paying $8,600 a year In tultion expenses at the end of the next two years. Bonds…

A: The objective of the question is to calculate the present value and duration of the tuition…

Q: What would you pay for a $110,000 debenture bond that matures in 15 years and pays $5,500 a year in…

A: Given Information Amount of Debenture Bond = $110,000 Maturity = 15 years  Interest earned per year…

Q: A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays…

A: Dollar return is calculated as: = (Price at end + Dividend) - Price at beginning Percentage return…

Q: What is the present worth of a $10000 bond that has an interest of 20% per year payable…

A: The bond is fixed-income security issued by the company to raise funds. The present worth of a bond…

Q: A $1,000 Treasury inflation-protected security is currently selling for $965 and carries a coupon…

A: Treasury Inflation protected security also called as TIPS are offered by the government of the US.…

Q: A 12-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.00% (3.000% of face…

A: Face value of the bond = $1,000 Coupon rate = 6% Semi annual coupon rate = 6%/2…

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: Bond A has the following terms: (Use semi- annual interest payments if applicable.) Coupon rate of…

A: a) Bond A Using semi-annual interest payments. Face Value (FV) = $1000 Semi-annual coupon ( C )=…

Q: The stated rate is 5%; the market rate is 4%. The future value of Bonds payable is $1,000. When…

A: Future value of bonds payable = $1000Stated rate = 5%Market rate = 4%

Q: a. Compute the bond's expected rate of return. b. Determine the value of the bond to you, given your…

A: a)Calculating Expected Return,Using TVM Calculation,I = [PV = -825, FV = 1,000, PMT = 80, N = 10]I =…

Q: What would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in…

A: Introduction: Debenture bonds are issued by the organization to borrow money for its business…

Q: Suppose a pure discount State of New York bond will pay $1,000 ten years from now. If the going…

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: A bond pays $11,000 per year for the next 10 years. The bond costs $99,000 now. Inflation is…

A: Dollar Internal rate of return= (Payment per year * Number of years - Cost of Bond) / Cost of Bond

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

A: Worth of the bond can be calculated by discounting the future cash flow of the bond at the given…

Q: the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 •…

A: Bond is a type of debt security which carry fixed income i.e. interest. Bond are issued by…

Q: Calculate the price of the bond (€),

A: The price at which a bond is currently traded on the open market is referred to as its market value.…

Q: A 10 year bond pays interest of $28.20 semiannually, has a face value if $1000, and is selling for…

A: Bonds are debt security which is generally issued by corporates or governments to arrange funds.…

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: Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.…

A: Solution Given Annual interest 98 Market value 870 Years to maturity 5 Par…

Q: 20 year, 5% annual-pay bond has a par value of $1,000, what would this bond be trading for it it…

A: Coupon rate=5% Period =20 years  YEILD to MATURITY =12% Par value =1000

Q: a.  What is the yield to maturity on this​ bond? b.  Should you purchase the bond if the yield to…

A: YTM is the annual return that a bond holder would receive if the held the bond until maturity.

Q: Use the following tables to calculate the present value of a $791,000, 5%, 6-year bond that pays…

A: The present value of bond can be calculated as present value of coupon payments and present value of…

Q: Suppose that you have purchased a EUR bond issued by Deutsche Bank. At the time of the purchase, the…

A: YTM stands for yield to maturity, which is the present value you can expect from your bond or debt…

Q: A bond pays $10,000 per year for the next 10 years. The bond costs $90,000 now. Inflation is…

A: Given, Bond pays 10,000 / year for 10 years. Cost of bond = $90,000 Inflation = 6% for 10 years

Q: What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually…

A: Bond which is selling above par value is called premium bond

Q: Use the following tables to calculate the present value of a $672,000, 6%, 6-year bond that pays…

A: Formula: Present value of the bonds=Present value of the face value of the bonds+Present value of…

Q: A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of…

A: The objective of the question is to calculate the price of the bond equivalent yield for a T-bill…

Q: Suppose Home Depot issues 30-year bonds on which it pays a 4.00% (nominal) interest rate. Further,…

A: real rate of interest = nominal rate - inflation  given, nominal rate = 4% Actual interest = 1%

Q: You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You…

A: Rate of return is the percentage of profit earned from an investment. Given: Face value of bond is…

Q: calculate the present value of a $375,000 @ 5%, 5-year bond that pays $18,750 interest annually, if…

A: Information provided: Face value = $375000 Time to maturity = 5-year Market interest rate = 10%…

Q: If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells…

A: Face Value of bond = $100 Selling Price today = $85 Interest in 1 year = $100-$85 = $15

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.