Pam has just invested $2,500 in a 10-year 1.5% coupon bond with semi-annual coupons. The bond will be redeemed at 10% above par. Based on the price she paid, the yield on this bond will be 5% a year convertible semi-annually. Find the nominal holding Pam has purchased.   Answer: 3,171.72

Q: Betty bought a 9% four-year bond with a par value of $100. The bond pays the coupon payments…

A: Amount of first coupon (C) = $4.50 (i.e. $100 * 0.09 / 2)Semiannual discount rate (r) = 0.05 (i.e.…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 10% annual coupon rate and a…

A: Bonds are a type of debt security that represents a loan made by an investor to a borrower. In…

Q: In the past, Farmer Felix bought a $1,000 face value, 5.0 percent coupon bond (interest paid…

A: Present value of annuity is computed as follows:-PV=A* wherePV= Present value of annuityA= periodic…

Q: Kenneth Clark just received a cash gift from his grandfather. He plans to invest in a five-year bond…

A:

Q: 63. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4…

A: The real coupon rate is equal to nominal coupon rate minus inflation rate

Q: t, calculate the value of each warrant.

A: Warrant: Warrants being similar to options provides the buyer the right, however not the obligation…

Q: Assumed that Amanda decided to purchase a corporate bond that pays 7 percent coupon payment. The…

A: Assuming Face Value = 1000 Purchase Price = 1000 Coupon = Coupon Rate * Face Value = 7℅*1000 = 70…

Q: A $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Christopher purchased…

A: The valuation of a bond is done by discounting the future cash flows from such bond at the market…

Q: jorge cabrera paid $1,100 for a 15-year bond 10 years ago. the bond pays a coupon of 8 percent…

A: We will be using Excel function, =RATE to find realized yield. =RATE(nper,pmt,pv,FV,type,guess)

Q: Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield…

A: A bond is borrowing security issued by the company to raise funds from the market by making an…

Q: Four years ago, Lisa Stills bought six-year, 9.50 percent coupon bonds issued by the Fairways Corp.…

A: Given Information:Purchase price is 947.68 Current price is 877.08 Holding years is 4 Coupon rate is…

Q: Vickie just bought a 6.5% annual coupon bond that will mature in 15 years for $960. Assume the par…

A: Here, ParticularsValuesFace value of the bond (FV) $  1,000.00Current price of the bond (PV) $…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a…

A: The problem is asking for the rate of return Janet would have earned for the past year. The…

Q: This morning, Alicia bought a ten-year 9% coupon bond that pays interest annually. She paid $994 for…

A: Interest = Principal x rate x time

Q: a 7 year, $100,000.00 face value, 4.250% coupon bond. The bond is priced to yield r(365) = 2.000%,…

A: Sinking fund is fund to make payment on the maturity of bond.

Q: A 3-year corporate bond is issued on 1/5/19 with a face value of $100 and a coupon of 2% pa (paid…

A: Here,

Q: Last year Janet purchased a $1,000 face value corporate bond with a 9% annual coupon rate and a…

A: Face Value = 1000 Coupon = Coupon Rate × Face Value = 9% × 1000 = 90 Time Period (N) = 15 years YTM…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a…

A: Par value  of Bond = $1000Annual coupon rate =7% Annual coupon payment = 1000 *7% = $70 Yield to…

Q: An investor bought a zero-cupon bond with $1000 face value and 10 years to maturity for $630.35. She…

A: Zero Coupon Bond Face Value = $1000 YEars =10 Sold after 7 years  Remaining years = 10-7 = 3 years…

Q: A $10,000, 10% coupon (j2), bond has 20 years until maturity. Sebastian purchases the bond to yield…

A: Information Provided: Face value = $10,000 Coupon rate = 10% Yield to maturity before selling = 9%…

Q: How much does he pay?

A: Price of a bond is the market price at which bond is available in the market.

Q: Last year Janet purchased a $1,000 face value corporate bond with a 10% annual coupon rate and a…

A: given data par value = 1000 annual coupon = 1000 *10% = $100  yield to maturity = 9.35% JANET sold…

Q: 4. Last year Arman purchased a $3028 face value corporate bond with an 8% annual coupon rate and a…

A: First, calculate price of bond:Formula table:Result:

Q: Q3. A company issues a $ 20,000 bond at a coupon rate of 7.5% payable semi-annually. Joan purchased…

A: When the yield to maturity changes the price of the bond changes in the opposite direction.

Q: Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield…

A: The question is based on the concept of bond valuation. The value of a bond is the present value of…

Q: Mary bought a $10,000, 7.25% coupon bond at $9,500. The bond matures in 10 years and interest is…

A: Question 22.Market Price of Bond= $10,000Purchase Price = $9,500Period of Maturity = 10 years…

Q: Beatrice wants to buy one of the bonds below. Calculate the price she would have to pay. Assume both…

A: Here, Coupon Rate of ABC and DEF is 5% Face Value of ABC and DEF is 10,000 Yield of ABC and DEF is…

Q: Anna bought a 13-year Connecticut state bond with face value $10,000 and a coupon rate of 4%. The…

A: Yield to maturity  ( YTM) = (Coupon value + (Face value - market value)/n) / ((Face value + Market…

Q: 1. You are considering a 20-year, $1,000 par value bond. Its coupon rate is 10%, and interest is…

A: 1. You should be willing to pay around $359.80 for the bond. This amount is calculated by finding…

Q: to yleld 1% CC ow much does he pay? = $24,255.07. = $23,779.48. = $21,639.33. $25,206.25. %D =…

A: In this we have to calculate present value of coupon payment +Present value of par value.

Q: Tom bought a coupon bond a year ago, and it costed him $870. The bond has a par value of $1000 and a…

A: Bonds refer to the debt security that is issued for the purpose of raising capital from the external…

Q: with a 476 Coupon rate for $4,730. JpəA uə1 e pəseuɔund asní sn alculate the yield rate that he will…

A: Price of bond is present value of par value +Present value of coupon payment.

Q: 4.   You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. What is…

A: The holding period rate of return would be calculated by using the following formula:Rate of…

Q: Shane buys a 14-year, $150,500, zero-coupon bond with an annual YTM of 4.32%. If he sells the bond…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: Four years ago, Betty Stills bought six-year, 5.9 percent coupon bonds issued by the Cullumber…

A: Coupon bonds are financial instruments that, up to the bond's maturity date, provide the bondholder…

Q: a. What was the purchase price of the bond?   b. What was the selling price of the bond?   c.…

A: The purchase price of bond is calculated as present value of cash flows received from bond. The cash…

Q: Suppose Anastasia has a consol bond (a perpetuity bond) that pays an annual coupon of $200 per year…

A: Here, Annual Coupon = $200 YTM = 10% Increase in YTM = 12% To Find: Capital gain =?

Q: Martha bought a 20-year bond at inception at face value of $11,000.00.  She held it for 10 years,…

A: First we need to calculate the purchase price of bond .   Purchase price can be calculated using the…

Q: A $5,000 bond had a coupon rate of 5.75% with interest paid semi-annually. Brett purchased this bond…

A: A) Calculation of Purchase price of bond:- Present value semi-annual coupons    =     Semi annual…

Q: Four years ago, Sandra Stills bought six-year, 5.5 percent coupon bonds issued by the Oriole Corp.…

A: We have all the characteristics of a bond. We known the quantum and timing of cash flows emanating…

Q: . If Janet sold the bond today for $986.11, what rate of return would she have earned for the past…

A: Information provided: Face Value = $1000 Annual coupon = 8% = $80 Yield to maturity (YTM) = 11.1%…