suppose a company issues $10,000 face value discount bond maturing in one year What's the price of this bond if its yield to maturity of 5 percent?

Q: A Company has issued 55-year bond 17 years ago at a coupon rate of 12% quarterly basis. The face…

A: Bonds are debts instruments that are issued by entities to raise funds and meet their capital…

Q: Becky's corp bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon…

A: Computation of yield to maturity:

Q: A company issued a bond a few years ago that has a face value equal to $1,000 and pays investors $30…

A: Given information: Par value : $1000 Semi-annual coupon payment : $30 time to maturity : 8 years…

Q: A bond that has features: coupon of rate of  5 percent principal: $1,000 term to maturity: 10 years…

A: a.Calculation of Price of Bond when it matures:The bond price can be calculated using a excel…

Q: A firm issues a bond with face value of $10,000. The coupon rate is 10% annually to be paid at the…

A: Value of the bond is present value of cash flows from the bond

Q: Renfro Rentals has issued bonds that have a 10% coupon rate, payable annually. The bonds mature in…

A: The price of bond will be the present value of all future coupons and present value of face value…

Q: A 20-year, $1,000 par value bond has a 8.5% annual payment coupon. The bond currently sells for…

A: The internal rate of return (IRR) associated with acquiring a bond and holding it until it matures…

Q: aid annually, what is the value of the firm’s bond when the required rate of return is 8% and 12%?…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.1% paid…

A: Computation:

Q: A firm has an issue of $1,000 par value bonds with a 12 percent stated interest rate outstanding.…

A: given, par = $1000 coupon rate = 12% n = 10 years r =8%

Q: YZ issued a bond with a par value of P1,000. The bond pays an interest of P35 each quarter, and has…

A: Par value (FV) = P1,000 Quarterly coupon payments (C) = P35 Years to maturity = 10 Years Number of…

Q: A $1,000 face value bond is currently quoted at 100.8. The bond pays semiannual payments of $22.50…

A: In the given question we need to calculate the coupon rate on bond using following details: Face…

Q: A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon…

A: Par value of bond = 1000 Coupon rate = 6% Coupon amount = 1000 * 6%    = 60

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: The coupon is paid on the face value of the bond. Therefore, the coupon of the bond is calculated…

Q: The firm has bonds outstanding that mature in five years. The par value of each bond is $1,000, the…

A: Face value of bond is $1000 Coupon rate is 5% The bond pays annual coupons for 5 years until…

Q: Company Prestwood has issued bonds that have a 10% coupon rate, payable annually. The bonds mature…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

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: A corporate bond pays 5% of its face value once per year. If this $5,000 10-year bond sells now for…

A: Bonds are financial instruments which provide fixed returns to its holders. Bonds actually have a…

Q: a $1,000 face value bond matures in 30 years and pays semi-annual coupon payments based on an annual…

A: A bond is a debt instrument issued by companies or the government to raise funds from the public and…

Q: A 6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon…

A: The amount that is received by the bond holder above the par value of the bond when the bond is…

Q: A firm issues a 10-year bond with a face value of $1,000 and annual coupon payments of $100.…

A: In this question we need to compute the yield to maturity of bond which will make its present value…

Q: A 20-year Treasury bond is issued with face value of $1,000, paying interest of $68 per year. If…

A: Coupon rate can be calculated by using this equation. Coupon rate =InterestFace value*100

Q: A bond issued by Delta Corporation matures in 12 years. It has a 12.5 percent annual coupon rate and…

A: The bond value is calculated as sum of present value of cash flows from bond

Q: A corporate coupon bond of 7.0 percent is callable in five years for a call premium of one year of…

A: A callable bond is one which can be redeemed before the maturity at a call price which is above the…

Q: An 8% corporate bond with a face value of P100,000 matures in 5 years. The yield to maturity is 7%…

A: Current price of the bond is the present value of all future cash flows associated with the bond.…

Q: What is the yield to maturity on a $1,000-face-value discount bond maturing in one year that sells…

A: Given information: Face value of bond is $1000 Price after one year is $800

Q: A Baxter, Inc.'s bond has a 4 percent coupon and pays interest semi-annually. The face value is…

A: Details given are as follows: Coupon rate = 4% Face value =$1000 Current price (Present value) =…

Q: Suppose that a company issues $10000 face value discount bond maturing in one year.What is the price…

A: The bond is a fixed-income debt security. The current price of the bond is the discounted value at a…

Q: Suppose you purchase a five-year, 12 percent coupon bond (paid annually) that is priced to yield 10…

A: Bonds are the debt instruments which are lent by the government or a corporation which gives fixed…

Q: Charlotte’s Clothing issued a 5 percent bond with a maturity date of 15 years. Five years have…

A: Given information: Selling price of bond is $690 Number of years is 15 Issued at coupon rate of 5%

Q: A 15-year Treasury bond is issued with face value of $1,000, paying interest of $58 per year. If…

A: The coupon rate can be calculated as:

Q: If a company issues bonds today with an annual coupon rate of 6% per annum, maturity of 5 years and…

A: Using excel PV function

Q: Renfro Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8%…

A: BondIt is the instrument of the indebtedness of an issuer of the bond to the holders of the bond

Q: Calculate the yield to maturity of both bonds. All else being equal, explain which bond the issuing…

A:

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: Kaiser industries have bonds on the market annual payment with 14 years to maturity and selling for…

A: Following details are given in the question: Current price (Present value) = $1382.01 Assume Par…

Q: A company has Bond outstanding the par value of which is $1,500 the rate of interest is 10% the bond…

A: Given information: Par value of bond is $1,500 Interest rate is 10% Maturity is 30 years YTM is 12%

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: A corporate bond matures in 14 years.  The bond has an 8% semiannual coupon and a par value of…

A: Calculate the yield to maturity as follows:MS-Excel --> Formulas --> Financials --> Rate

Q: Thatcher Corporation’s bonds will mature in 10 years. The bonds have a face value of $1 000 and an…

A: Different financial institutions and corporate houses use bonds as a form of financial debt to raise…

Q: Assume that a company issued a semi-annual bond with $1000 face value, 10% coupon rate and 15 years…

A: Working note:

Q: Consider a 8-year corporate bond issued by Vandalay Industries. The bond has a face value of $1,000,…

A: Bond price refers to the right price of a bond which is also called as the intrinsic value of the…

Q: Give the approximate yield to maturity for a $1,000 par value bond that is selling for $1,120 and…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: A corporate bond with a face (par) value of $10,000 will mature 7 years from today (it was issued 3…

A: Formula to calculate yield to maturity:YTM=C+FV-PVnFV+PV2×100r= rate of returnC= Coupon paymentn=…

Q: A company's bonds have a face value of $1,000. The bonds carry a 6% coupon, pay interest…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…