ind the amount of the semi-annual coupon for a 190,000-peso bond which pays 8% convertible semi-annually for its coupons.
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Find the amount of the semi-annual coupon for a 190,000-peso bond which pays 8% convertible semi-annually for its coupons. (Show your complete solution. Then, encircle your final answer.)
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- A 8-year zero-coupon bond has an interest rate of 7.7%. What is it worth today? show your work! Answer:Suppose you invest in a municipal bond that pays a yield of 9%. If your marginal tax is 29%, what is the equivalent yield on the taxable bond? (write your answer in percentage and round it to 2 decimal places)You are interested in purchasing a bond maturing on November 1st, 2029. The bond pays semiannual coupons at a 6% annual coupon rate. It has a discount rate of 4% and a $1,000 par value. Today is November 1st, 2023. What is the price (in terms of dollars) of the bond?
- Use Given-Required-Solution in answering problems. Provide cash flow diagram. Write answer on the space provided below. Solution shall be uploaded at the end of the quiz. A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and pays 15 percent per annum, how much should the annual earning interest be? Round off to four decimal places in the final answer/s.2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March 1, 2023, is $990. The last coupon payment was made on March 1, 2019. If you buy the bond on July 1, 2019, what is the total price you must pay for the bond?Assume that a corporate bond has a par value of $1,000 and pays coupon payments semiannually. What is the semiannual coupon payment for this bond if the coupon rate is 6.66%? (Round your final answer to two decimal places.)
- 1. (Bond Valuation Problem) A $1,000 par value bond with a coupon interest rate of 12.8 percent per year paid semiannually matures in 25 years. Draw a CF diagram corresponding to this information and then complete the table below by filling in the prices and YTMs that correspond to the given YTM’s and prices respectively. Show all the work for part D – both the PVAt and PV calculations. Then check your answer using your calculator’s TVM solver menu or function keys. PRICE YTM A. ______________ ___0%____ B. __$1,000______ __________ C. __$ 917.19_____ __________ D. ______________ ___16%____You are considering the purchase of a coupon bond with a face value of $1,000, which matures in 14 years, and pays 4.15% (annual) coupons. If you require a return of 3.50% on this instrument, how much would you offer to pay for it today? [Present the answer rounded to two decimal places, e.g. 1035.16]3. You own several bonds and as an astute investor, you keep track of your interest payments (also known as coupon payments or cash flows). Annually, you receive a fixed total of interest payments of $2,000 per year from these bonds for the next 5 years and your required rate of return is 7.5%. What is the current value of your bond investment? Show your work and explain your answer.
- You have the choice between a convertible bond and a non-convertible bond for investment. Both offer you a coupon rate of 2.5% per year with semi-annual compounding. The remaining maturity for both bonds is 7.5 years. The price for the non-convertible bond is 99.7. Would you pay more or less for the convertible bond? Why?Suppose that you are interested in purchasing a bond issued by the VPI Corporation. The bond is quoted in the Wall Street Journal as selling for 89.665. How much will you pay for the bond if you purchase it at the quoted price? Assuming you hold the bond until maturity, how much will you receive at that time? If you purchase the bond at the quoted price, you would pay $. (Round to the nearest cent) Assuming you hold the bond until maturity, you would receive $ (Round to the nearest dollar)You are considering buying a semi-annual coupon bond with a stated coupon rate of 8 % (note that the stated rate is in annual terms). There are 10 years to maturity remaining on it. Your required rate of return is 12.4 % per year, How much should you be willing to pay for this bond? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).